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Insurance For Business

Whether you are running a multinational corporation or a small business operating from a spare bedroom at home, insuring certain aspects of your business is essential. For a number of years an increasing amount of people have been choosing to work from home. With cheaper IT costs, broadband and a greater accessibility over the internet, running a business from home is now an affordable, realistic option. But before you start thinking of converting that shed in the bottom of your garden to a new office, you should seek some professional advice to make sure you cover your business requirements.

Before you start a new venture you need to address the business insurance cover that may be required. These include:

Professional Indemnity

Professional indemnity insurance indemnifies professionals against third parties claims of negligent acts committed in the course of their professional duties. In many businesses such as accountancy or IT consultancy it is a legal requirement to have PI insurance. There are three main areas of PI insurance cover, firstly against a negligent act, error or omission. Secondly cover against a breach of duty and thirdly cover against civil liability, which include breaches of contract, libel or slander.

Employers Liability

Employer’s liability protects a business from any claims made by the employees, for instance claims for accidents in the workplace or sickness caused by the working environment. There are many different types of claims employees can make on their employers, some of the more common include slips, trips or falls, stress and anxiety or an unsafe workplace, for example falling objects. Even if you work alone and you employ someone on a temporary basis, you will be liable for any injuries that they receive.

Public Liability

Public liability insurance protects against claims of a third party due to damage or injury as a result of your businesses activities. The owner or occupier of a business premises is required to provide a level of care for the general public, there are three main degrees of care. Firstly people who by some form are invited onto your premises they are called ‘invitees’. If this ‘invitee’ spends money on a service, your duty of care and your chance of being liable increases, for example if you run a karting centre and one of your customers is hurt due to faulty machinery, you are liable for their injury. Secondly if people enter the premises with the permission of the occupier (called ‘licensees’) but without any economic advantage to the occupier, then the duty of care is less than in the case of ‘invitees’, for example a travelling salesman. Thirdly if there are ‘trespassers’ who enter the business premises without the permission of the occupier, there is still a degree of care owed but it is slight compared to both ‘invitees’ and ‘licensees’. A good example of this is a child who wanders onto a business premises and injures themselves, without necessarily knowing the dangers associated with the building.

There are many other types of insurance that small businesses might look into getting, including,

Equipment Insurance

Equipment insurance covers the damage or loss of equipment within a business, subject to the terms of agreement. For example if a new PC is damaged or dropped and wasn’t covered in the warranty, a good insurance policy would cover the purchase of new equipment.

Buildings and Contents Cover

Buildings and contents cover insurance protects a business’s property from damage, it also covers the fixtures/fittings within the property. Also if you are storing your stock at home, then contents cover will be essential. You could be left heavily indebted if your products or tools are stolen and you risk losing business and income if new tools cannot be purchased.

Legal Expenses insurance

Legal expenses insurance helps protect a business if legal action is taken against the company, for example legal fees and court costs.

Many self employed workers in small businesses rarely consider the implications of being sick or having an accident, leaving them unable to work for long periods of time. Sickness and accident policies cover these eventualities, as well as some longer term policies such as income replacement insurance. It is generally a good idea when shopping around for the best insurance quotes to compare like for like cover, it is a well used tactic to lower cost by lowering cover. So make sure you understand every aspect of what is included under the proposed insurance deal, it will greatly benefit you when you need to make a claim.

It is important to seek specialist advice when looking into insurance and it is important that you request quotes for your specific needs.

Is an LLC Your Best Option?

Entrepreneurs must already choose the legal structure of their business even before they start such venture, if only to make sure that they now the risks and the advantages involved in starting that kind of business. Business owners can choose to put up a sole or single proprietorship, enter into a partnership or form a corporation.

Each of the three legal structures has its own advantages and disadvantages. A sole proprietorship is the easiest type of business to put up and operate because only one person is responsible for decision making and for running the business. However, being alone in business means you are solely responsible for whatever happens to you business and you only have to rely on your own capital and resources.

A partnership is better considering that two or more heads are always better than one. A partnership offers more possibility in terms of capital base and of brain power. However, partnerships do not always work due to conflicting business decisions.

The next if not the best option is to form a corporation which would be composed of incorporators who will put up the seed capital for the business. A corporation can provide more sources of funds and the owners are only liable to as much as the money they have invested in the business. Provided of course that the corporation does not indulge in illegalities or does things in bad faith. Doing so would necessitate the application of the principle of piercing the veil of corporate fiction. This means that the owners can be made accountable even beyond the amount of their investments if they are found to be in bad faith in certain transactions.

While the corporation has proven to be the best option for business owner, there is apparently another option called the Limited Liability Company which offers the characteristics of both partnership and corporation. Members of a Limited Liability Company can enjoy the limited liability enjoyed by corporations unless a personal guarantee has been signed. This legal structure also offers tax benefits much like the benefits available to corporations.

A Limited Liability Company does not however require the bureaucracy of a corporation in terms of the taking of minutes. And unlike in a partnership where the partners can only participate in decision-making depending on their partnership status, members of a Limited liability Company can take part in decision making without losing their limited liability protection.

However, while a corporation can last for 50 years renewable for another period, a Limited Liability Company can be easily disbanded particularly when a member dies or becomes bankrupt. It is also more feasible to form a corporation if there are plans to do a public offering.

Despite the disadvantages of forming a Limited Liability Company, it is still the best choice for business start ups that are still testing the waters but already want to give their business a legal structure.

How to Start a New Business

Copyright (c) 2009 Sherry Tingley

The economy has forced many people to consider alternative lines of income and many are starting their own businesses. There are a lot of ways to make money with your own business, but before you start there are a few things you should learn.

First things first, you must be very clear on the type of business you are to set up. Success begins when you have clear goals and know how to take actions to achieve these. Before starting, you must write down your business idea clearly. This will help you plan strategically. Different types of business have different types of strategic approaches and marketing strategies in order to become successful. You should also set your goals based on your skills. Let’s be realistic here. Being successful in business also depends on your skills and attitude. If you think your expertise is not adequate, then you can ask for help and assistance from business professionals. In order to start your business properly, be sure you have sufficient financing. And one thing more, choose a good spot to start your business. Upon considering all of these, things will go on smoothly.

There are other things you need to get started legally and officially. You cannot just put up a shop and sell products without having some permits. Above all, you need a business permit/license to start. This is a universal truth, whatever state or country you live in, a business permit must be obtained. In the US, business licenses are issued by the state, so expect some differences in requirements and guidelines per state. You can get a business license online or go directly to the county clerk’s office. It is suggested you go directly to the clerk’s office and Occupational License Department to get answers to your questions right away. Sometimes, there are areas or zones where certain business establishments are not allowed.

Another thing you need to do is to register your business name with the Internal Revenue Service. You are required to have either a Federal Tax Identification number or an Employee Information number. This can be obtained online at www.irs.gov. You will want to estimate approximate taxes and business fees that you will need to pay. These things may appear tedious but after getting everything done legally, you won’t be facing any more problems regarding your business.

A resale certificate or a wholesale license is also needed. Any business establishment that sell products need a reseller’s permit. Having this permit allows you to collect sales taxes. For more information on how to get a reseller’s permit, you can go to http://www.businessnameusa.com. You may also want to visit http://www.business.gov for more details on starting a business.

Here are some useful links you might want to visit to help you with your business plan and strategic planning:

http://www.themanager.org/pdf/Businessplan.PDF

http://www.sos.mo.gov/business/corporations/startBusiness.asp

http://www.state.nj.us/njbusiness/starting/

http://www.sba.gov/smallbusinessplanner/

How-To Define the Scope of a Project Management

How-To Define the Scope of a Project Management

Publishing Guidelines: You may publish my article in your newsletter, on your website or in your print publication provided you include the resource box at the end. Notification would be appreciated but is not required.

By S. Maurer

Defining Needs and Wants is an excellent way to define the scope of a Project Management and to set the parameters for Project Management planning; it can be a catalyst for discussion about what is really needed from the Project Management; and, it can force realistic decisions about what can and can’t be done.

People on Project Management often come together as strangers.

Project Management includes implementing the project plan, along with careful controls to stay on the «critical path», that is, to ensure the plan is being managed according to plan.

When you think of a business/services/manufacturing Director/Manager, typically, you will think of someone who oversees a specific functional business/services/manufacturing area — for instance, a sales team Director/Manager, or the Director/Manager of the accounting department.

Most teams find that the technical portion of the projects is easy.

Project Management are performed for results.

Project Management PM is used by large corporations, governments, and smaller organizations to standardize and reduce the tasks necessary to complete a project in the most effective and efficient manner and covering any field.

Many scheduling applications are tailored to specific manufactures or project types, but all use CPM precedence methodology.

How To Find Best Stock To Buy Now — Successful Stock Buyers Share Hints

So, you are looking to secure your future, huh? And the best way you believed how to do so is by investing in the stock market. Well, let me tell you something… Good choice! The business of stock trading and stock investing is a very rewarding one indeed, but only if you dedicate enough discipline and hard effort is put into understanding it.

I could chat to you about all of the popular and good stocks to buy out there, but that’s’s just the problem… From my own experience I can say that one of my best stock picks was of a small company back in ’89… Now one of the — if not the most — powerful multinational corporations in the world. I am not going to reveal the organization’s name though, but at the time I purchased them, is was selling penny stocks. It cost be around $0.70 to buy one stock, so I purchased a handful of them.

The Early Years

The first year, my little NASDAQ penny stocks went up around +0.30. That means they were up to $1.00! That was good knows! But I wanted them to go up a little further and then sell them so I could make the difference… To my amazement they fell to $0.90 — something like that.

For the subsequent 10 years the stocks zoomed and I was selling and purchasing and selling and buying… By 1999 they weren’t penny stocks anymore! Their price had gone up to an enormous $50 per stock! What about that! Life was good! And still is… Thanks to that moment!

In Short

What I’m making an attempt to say here is, the best stock to invest in isn’t always the one that’s’s worth hundreds of dollars. Sometimes you have to go for it and take the danger with penny stocks, and often with enough research you know the penny stocks are going to explode some day and make you a real fortune! For more information visit the stock trading book for dummies site.