Ten Ways To Protect Your Business. There are no certainties when it comes to business cycles, and no amount of guesswork can protect business owners from the ups and downs of a changing economy. There are, however, fundamental steps you as a business owner can take to minimize disruptions from increasing costs, changing consumer habits, growing operating risks, competition and fraud.Your business may have been up and running smoothly for some time, but as in any business, changes will occur, and it’s important to recognize the potential warning signs early and respond accordingly. For example, be alert for such things as slight decreases in sales, a decline in the number of potential clients or customers who respond to your promotions, and new market developments that could adversely affect the business.The bottom line is to identify the key issues facing your business and take the right actions to minimize the downsides and maximize the opportunities. The following ten ways may alleviate and manage the uncertainty and unforeseen downturn of your Business Enterprise noted above to protect and grow your business.:

➢  BUSINESS PLAN:

Reflect Your goal for the Business Enterprise Identify steps necessary to accomplish them and plan  the following:
▪  Where Business Enterprise is today?
▪  Where you want it to be tomorrow?
▪  How you plan to get there?

➢  FINANCIAL ASPECTS: 

Getting started with finance sources:

Angel Investors
Venture Capital Firms
Local Banks
Small Business Administrators
Determine loan structures that best fit your needs

➢  DEBT AND EQUITY FINANCING:

Debt Financing- loan must be repaid: Commercial, savings bank, and credit union Equity Financing-Selling all or part of your business to others.

➢  RISK MANAGEMENT

▪  Capital firms

▪  Employees stock ownership plans-ESOP

▪  Joint venture of licensing agreements

➢  CASH FLOW:
▪  Effective cash management enables you increase and invest your money
▪  Work with your CPA and review financial statements
▪  Simple ways to improve cash flow: Bill customer at the time of transactions, Offer discounts for early 

    payment

➢  ANNUAL BUDGET:

Create an annual budget and review it allows you to:
▪  Compare performance to projections
▪  Communicate your expectations

➢ MARKETING:
▪  Customer loyalty is key
▪  Promotional Efforts to raise your visibility: Customize adverting to niche markets Identify and respond   

   to emerging trends

▪  Set up joint promotion
▪  Get involved in local business associations Give speeches in your community

➢ LEGAL STRUCTURES

▪  Sole Proprietor

▪  Partnership:GeneralLimited

▪  Limited liability company

▪  C or S Corporation

➢ MANAGING BUSINESS RISK: 

▪  of Insurance:

▪  life and health Casualty and Theft Disability
▪  Compensation “Key Man”

▪ Liabitlity
▪ Automobile
▪  CPA can appraise your business to assess risks

➢  MANAGING YOUR WORKFORCE EFFECTIVELY:
▪  Determine the need for adding a position
▪  Follow federal and state hiring guidelines to avoid violating discriminating laws
▪  The job description is an important tool
▪  What is your responsibility as a business owner? Clearly communicate your philosophy to your   

    employees Provide regular evaluations and carefully document legitimate reasons for termination

➢  EFFECTIVELY USING TECHNOLOGIES:

▪ Is your technology serving the needs of your business and customers?
▪ Business can deduct new equipment purchases
▪ Government allows you to recoup depreciation deductions not taken from prior years May want to 

   consider leasing equipment’s

➢  SUCCESSION PLAN:

More than 70% of family-owned businesses DO NOT survive from founder to second generation.     Planning should begin 5 years prior to leaving
▪Tax savings strategies are integral part
▪ Life insurance is an important planning toolCreate incentives to retain key employees CPA can provide 

  invaluable advice

RISK MANAGEMENT

➢ FRAUD •

A number of ways to reduce the risks:

▪  Conduct audit to uncover irregularities

▪  Separate your recordkeeping functionsWhat should you do when you discover a discrepancy and/or irregularities:

▪  Call your bank

▪  Check your credit report every six months

▪  Be sure you have virus protection on your computer