Best Policy Practices

Just like individual people, businesses are constantly changing and growing. To ensure yours is heading in the right direction, it makes sense to identify and embrace best practices policies.

While your policies will be unique to your family venture, here are some suggestions.

SUGGESTIONS:

• Define Your Cushion: Does your company have an emergency fund? You’ve heard of this budgeting recommendation for individuals, but it’s also a sound strategy for your business. RocketHQ suggests tallying at least three months’ worth of expenses and setting that amount aside for rainy days.

• Embrace Personal Protection: It’s imperative to have a few policies in place that will protect you: always read a contract before you sign it, separate your business and personal finances, trademark your brand, and establish your company as an LLC.

  • When it comes to contracts, read even the fine print, and always have a lawyer look over it before you sign.

  • Then, open a separate bank account for all business-related spending and deposits. While many people opt to use a personal checking account to take advantage of lower account minimums and fees, it is possible to find a business bank account with those perks, as well as added small business services, like income projection and “buckets” for your savings.

  • You can trademark your brand through an online service of your choice, like through TrademarkPlus.

  • Similarly, you can establish your company as an LLC in a few simple steps through the office of the Secretary of State. Both of these processes are straightforward, relatively inexpensive ways to protect your assets.