How to Protect My Business for Peanuts

Businesses need to be protected from crime and other events that can affect operations.

"Peanuts" means inexpensive or cheap. Keeping your business protected from fraud and liabilities does not have to cost a fortune. Despite the threat of global terrorism and the war on drugs, investigating corporate fraud remains a high priority for the FBI. According to the FBI, corporate investors lost over $1 billion to corporate fraud alone by the end of 2009. As a business owner, you are required to operate, manage and keep your business safe while trying to make a profit. Keeping profit in mind, all business owners should ask themselves, "How can I protect my business for peanuts?"

Things You'll Need

• A Business Continuity and Disaster Preparedness Plan form
• Attorney referrals
• Firewall product referrals

Instructions

1. Create a Business Continuity and Disaster Preparedness Plan. This easy-to-create document helps business owners organize a strategy for the continuation of their business during natural disasters, accidents or other events that may cause a disruption in operations. A business disaster plan includes plans for cybersecurity, off-site data storage, evacuation plans and alternative ways to communicate with employees. Business owners can download a free Business Continuity and Disaster Preparedness Plan worksheet from Ready.gov.

2. Contact a business insurance agent. Business insurance is an easy and smart way to protect a business from liability for less than a dollar a day. Business insurance comes in various forms such as professional liability insurance, commercial general liability, commercial property and home business insurance. Commercial general liability insurance covers a business from injury, property damage and advertising claims. Professional liability insurance covers business owners who provide a service. This type of insurance covers a business against malpractice, professional errors and negligence. Commercial property insurance covers property damage and income interruption due civil unrest, natural disasters and other business-closing incidents.

3. Interview several business attorneys, and select one to serve your business needs. It is better to have a relationship established with an attorney before you need one. This is not costly since most attorneys bill by the hour and provide a free initial consultation. The amount each attorney charges depends upon their specific legal specialty such as corporate or patent law Business owners may require an attorney to protect business brands, trademarks or other business assets. For example, an attorney can help you protect a new product or intellectual property with nondisclosure agreements, patents or trademarks. Ask for attorney referrals from colleagues or local professional organizations such as the chamber of commerce.

4. Consider changing your business structure to a limited liability company, a corporation or an S-corporation to limit personal liabilities. In corporations, LLC's and S-corps, business owners become shareholders in their business, insulating their personal assets from seizure during litigation against the business.

5. Purchase firewall security for your business computers and networks. Buying firewall security is a low cost way to protect a business from cybercrimes. Firewall devices or computer programs control the flow of information in and out of the business, shielding it from third parties seeking to steal information. Several types of firewall technologies that meet federal and industry security standards are available. These standards include compliance with the 2002 Federal Information Security Management Act and the Payment Card Industry Data Security Standard. Ask your computer network vendor or the computer professional that maintains your computer systems for a product referral.

References

• MacMillan Dictionary: Peanuts
• Business Link: Protecting your business & ideas
• U.S. Small Business Administration: Incorporating Your Business
• U.S. Small Business Administration: Navigating Business Law on Your Own vs. Hiring a Lawyer; A 101 for Start-Ups
• Federal Bureau of Investigation: 2009 Financial Crimes Report
• Ready.gov: Business Emergency Plan

Resources

• U.S. Department of Commerce: Guidelines on Firewalls and Firewall Policy
• U.S. Small Business Administration: Types of Business Insurance