Top 3 mistakes new SMBs make

Being uninsured

“Not buying the correct types of business insurance is one of the easiest errors for small business owners to make. But protecting yourself against the possibility of disaster is an important step in starting a new business. After all, the right policy can mean the difference between bankruptcy and business as usual. Most new businesses benefit from general and / or professional liability insurance, which can cover legal costs if you’re sued over a number of issues. If you have employees, workers’ compensation is usually required by state law and can pay to help your team recover from workplace injuries,” said Ted Devine, CEO, Insureon.

Failing to develop a business plan

“Without a solid strategy in place, businesses can quickly fizzle out. Many young companies attribute their success to being “scrappy,” but this mentality doesn’t fuel long-term sustainability. A detailed business plan is critical to laying the groundwork for a new company, so small-business owners shouldn’t skip this step when launching their businesses,” said Devine.

Not putting contracts and policies on paper

“Many small-business owners launch companies without devoting time, money and energy to completing foundational documents like business contracts, policies and employee guidelines. To ensure smooth sailing for the long term, be sure to nail down the legal and regulatory basics. For instance, create policies that outline your relationships with customers, vendors and business partners. Written contracts between you, your customers and business partners can help your business run smoother and avoid disputes down the line. When it comes to managing staff, it’s also a good idea to put together an employee handbook in compliance with employer laws so your employees have clear expectations for behavior and responsibilities,” said Devine.