Building a business is difficult. No matter how many times one has done it before or the resources they have at their disposal, each time a person sets of on an entrepreneurial journey, it is fraught with uncertainty and risk.
Of course the early stages are the most difficult. Most times this is when money is invested and there are little or no returns. Anxiety is high and even though most entrepreneurs understand that there will be a timeframe that has to pass before they see any returns, one can not help but feel nervous.
Even after businesses have reached a certain level of maturity, there is no guarantee that they become completely risk free. Very often we hear stories of businesses stumbling while trying to expand or even struggling to keep their head above water while climbing up a steep growth curve, almost inevitable for a small business trying to make its mark.
Renowned entrepreneur and billionaire Mark Cuban famously said, “Business is the ultimate sport.” Anyone that has played a sport will attest to the fact that in sport, like business, there will be plenty of factors that will be beyond one’s own control. However, to achieve any amount of success, we must do the best with the things that are within our control. It’s about getting a lot of little things right. This is not as straightforward as it might seem.
While juggling all the different aspects of a young business, entrepreneurs are often running at full capacity and beyond. It is in this manic rush that it is more important than ever to make sure one has the wits to look into the little things.
One of these little things that might be easy to miss is good business insurance. It is not as glamourous as the viral marketing strategy or as fulfilling as moving into that plush office space, but its value can not be underestimated.
In an environment naturally fraught with risk, business insurance helps ease some of it. It is one of those simple tools people only think about after they are needed. Generally, by then it is too late. It does not necessarily need to be an expensive proposition. Depending on the size and type of business one can easily asses what kind of cover is needed. Generally, the cost incurred is comfortably manageable.
Like most things in business, being aware of the options is paramount. There are many types of insurance available, each of them, insulating the founder from a certain type of risk. It is up to the entrepreneur to pick and choose a selection that is relevant to them.
The protection insurance provides is not restricted to business risk in the traditional sense. Sometimes, as businesses grow, they need certain policies in place to comply with regulations. When they begin to see success and work with bigger organizations, legal compliance makes it almost mandatory to have a certain amount of cover. Some of these policies are generic, like worker’s compensation to protect a growing workforce. On the other hand, some might be specific to the field of operations a business is in.
An easily forgotten aspect of entrepreneurship is the human side of things. Most business owners are also people with families and loved ones. The drive to push themselves so far comes from the need to make life better for these loved ones. It is not only the business but also these loved ones that are protected by a good policy.
For a young business, there is a massive dependency on the founders. In the unlikely event the worst should happen, it often leaves the family dealing with a financial crisis to go with their personal loss. Both the business and the family are in disarray. Apart from the emotional loss of a founder, the business itself finds itself in desperate need of a rudder and will inevitably begin to drift. Until this course can be corrected, it is greatly beneficial for everyone involved to have the comfort of a good business owner’s policy to help tide them over troubled times.
Some of the greatest trapeze artists in the world, might be able to pull of a spectacular show without ever needing to rely on a safety net. They might not need it, but one can be sure that they will still choose to employ it for most of their performances. Just the comfort of having it there inspires enough confidence in them, allowing them to perform to the best of their ability. Whatever the needs an establish artists’ performance might entail, one can be sure that when they were just setting out on their journey, they never ventured up to those dizzying heights without a safety net. Similarly, for businesses across all verticals, it seems foolish to expose themselves to any risk that can be avoided. If a safety net is available, there is no good reason to make full use of it. The ability to bounce back after a set back should not be denied to any entrepreneur.