How planning ahead can protect your professional services business
Planning ahead can save time and money. Take time to budget properly, identify and continue to assess your risks, consult with a risk management expert, and make sure you have the right insurance.
There is an African proverb that states, “The future belongs to those who prepare for it today.” That is just as true today as it ever was, especially in the professional services industry.
Running any business is a lot of work, and often requires the owner to become proficient at aspects of management that they may not have as much experience in, or areas that lie outside of their core business. For example, a graphic designer may not have drawn up a budget before, or a management consultant may not have experience determining what type of insurance they need.
Here are some things that any professional service provider can do to mitigate their risks so they can focus on growing their business.
Take the time to budget
Budgeting allows you to make a spending plan for your money, ensuring that you will always have enough funds for the things you need to keep your business going. It will also ensure that your company will stay out of debt, or be able to manage your debt properly. Similar to a household budget, a business budget makes sure you have the resources for things like rent, vendor accounts, and insurance.
If a business doesn’t know where the money coming in is going, it won’t be in a position to expand, or make long term commitments. A business that does have a solid budget, on the other hand, is able to engage in strategic, long-term planning. That way, it knows if and when it can hire new employees, what services it should invest in, and hit financial objectives.
Have a plan, and assess it regularly
You might have ideas about what you would do in an emergency situation, but it’s a good practice to have that documented in a risk management plan. By understanding what kinds of risks your business faces, and finding ways to minimize their impacts, you will help your business recover quickly if an incident occurs.
Allocate time, a budget, and some resources to to preparing a risk management plan, and revisit it on a regular basis to see if your plan is up to date with best practices, and your business is still facing the same risks.
Make sure you have the right insurance
Insurance is a critical part of every risk management strategy. According to Swift Digital Insurance Commercial Lines Account Executive Lindsey Helm, anyone who provides professional services should consider the following three lines of coverage
- Professional liability insurance – To cover you in the event a client claims that advice you gave resulted in a financial loss for them.
- General liability insurance – To cover you in the even someone is injured while at your business, such as slipping and falling.
- Contents insurance – To replace the things you need to operate your business in case they are damaged or stolen.
Swift Digital Insurance offers all three coverage lines in one simple online application. Apply online today.