4 Ways New Companies Protect Themselves

Startups are afraid in today’s business climate for many reasons. Companies are failing daily due to employee uprisings or mismanagement from within. In any case, these companies could avoid internal issues with better procedures in place. Here are some other ways new companies can get an edge since they will need all the help they can get.

1. Verifying Employees

As expensive as it is becoming, checking and re-checking employees can be a great investment toward preventing future issues. Thorough employer background check services could save you the grief of hiring a problem employee before it even has a chance to start. Companies that need people with security clearances, licenses or any other special qualifications will require looking harder at each prospective hire. Finding a company that is good at this sort of thing will save time and effort.

2. Getting Liability Insurance

Companies that house inventory or develop items that are eventually sold to the public need to have liability insurance in case something goes wrong with that product and injures a customer. A good example would be a space heater that plugs in the wall. If the heater causes a fire or shocks its user, that customer can seek restitution in a court setting. Having insurance that covers the company in these situations of unforeseen danger can be the difference between continuing as a business or declaring bankruptcy.

3. Building a Custom Security System

Many companies have warehouse locations or office locations, or even both. It’s usually not enough to hire one security company to install sensors and cameras. What if that one company is compromised or decides to get smart about your security? Hiring at least two security companies is a good idea, along with making sure there are no blind spots or malfunctioning cameras every day during closing. The security footage should be sent offsite to cloud storage as often as possible.

4. Ensuring Properly Done Compliance and Taxes

Many businesses do great work for the first couple of years only to find themselves in hot water with the IRS. A company can save a lot of heartache down the road by ensuring compliance is done properly from the start. This is different than over-complying which can also stifle a business to the point of collapse. Taxes are also a balancing act. At first, there may be incentives to hold the money in the company’s bank and not pay it out to be taxed if it isn’t necessary. Some inexperienced tax personnel might overpay taxes in the first crucial years and ruin the business’ chance at expanding.