All businesses need to have the ability to receive consultative support in the areas of legal, insurance and human resources.
As these areas are sometimes overlooked by the new entrepreneur – you as a savvy, intelligent entrepreneur know this should really be at the top of your list of concern!
The possible difficulties that can impact your business and the realities of ignoring the importance of each of these areas can not be taken too lightly.
Recognizing the importance of legal, insurance and human resources requirements of your business and being prepared is essential to reduce the risks to your business.
Have you seriously thought about the legal, insurance and human resources requirements of your business? If so, have you been struggling with trying to sort it all out so that you can have what you need but not too much or too little?
Somewhere in your thinking you know that you need to address these areas for your business. You have heard all of the pros and cons, but you still need ACTIONABLE STEPS in order to make a decision and move forward.
With regards to the legal, insurance and human resources needs for your business – are you:
· An aspiring entrepreneur who is unsure of what you should have for your new business and if and when you will need it.
· An aspiring entrepreneur who already knows what your business needs or will need, but you are not sure how to get started to work towards making a decision.
· An established entrepreneur, who is concerned that you have not been able to sort out what you should do about these matters.
· A new or established entrepreneur that hears so much conflicting advice about these topics and you can not make sense of what to do.
Why Should These Topics Be So Important to Entrepreneurs?
Many a successful business has found itself in great trouble because of the lack of having addressed these areas of their business.
Ignoring their importance does not minimize their value!
The goal is to minimize business risks in order to minimize the effects of a potential problem.
These considerations include:
Legal: the undue problems that a company can find them can sometimes be avoided with the relevant contracts and proper legal advice. There is the idea that a business can “get by” without paying for legal advice and that that remains a decision the entrepreneur must make. Often times a “wait-and-see” approach to legal advice is not always the best.
Insurance: it is so important for businesses to have adequate insurance in place. Also, the right kind of insurance is important. If a business ignores the importance of insurance, they are left unprotected in case of trouble.
Human Resources: although it may be tempting to just “hire and fire” as the entrepreneur sees fit, but this can lead to all sorts of difficulties if everything is not handled in the correct way. There are also other issues such as knowing how to handle various employee situations and what can happen if they are deal with in a legal and human way.
Why Do Entrepreneurs' Often Find These Matters Difficult?
Legal, insurance and human resources are some of the most difficult and trying areas for entrepreneurs (both new and well-known) to deal with.
This is often due to fact that most entrepreneurs:
· Are generally positive thinkers who naturally do not think about the risks of being in business.
· Believe that “nothing will happen to me” and that liability and other risks associated with business are not likely to occur.
· Have the idea that to spend money on these areas of their business is not needed, except absolutely necessary.
It is often helpful for entrepreneurs to have a more forward-thinking plan that includes:
· Becoming more analytical about their business and understanding that while problems can not be avoided, but they can be minimized.
· In the case of a real challenge to the business, whether it involves legal, insurance or a human resources matter, it will always cost more to fix, than to less the risks to begin with.
· Taking an attitude of “plan for the worst, but expect the best” as a mindset that will help to be prepared in case of problems.
· Realizing there are certain business costs that must be expected in business that are unavoidable.
· Appreciating the benefits of having peace of mind with the knowledge that business risks have been properly considered and acted upon.