Many people dream about becoming business owners. Unfortunately, the reality of running a business doesn’t always line up with their expectations. They discover that it is a lot harder to run a successful company than they thought. Around 20% of businesses don’t even survive past the first year and a half are bankrupt by the fifth year.
There are a lot of reasons that businesses fail. A study from US Bank found that 82% of companies failed due to cash flow problems. However, this doesn’t offer any meaningful insights because many issues contribute to cash flow concerns.
When you dig deeper, you will discover that one of the biggest reasons companies fail is that they don’t make sensible investments. Therefore, you need to consider the essential investment opportunities your business should take advantage of.
Some valuable investment ideas are listed below.
Reliable parts for your company vehicles
Do you use vehicles to operate your business? You can’t afford not to maintain them properly.
This means that you have to invest in the right parts for them. You might want to purchase a reliable AOD transmission and other parts to operate your vehicle. This can help make sure that your vehicles run reliably. You can’t take the risk of them breaking down while delivering an order or going to a business meeting, so invest accordingly.
An LLC license
There are many different ways to structure your business. The easiest is to become a sole proprietor and get a standard business license. But, unfortunately, this might not be the best option.
The problem with a standard sole proprietor business structure is liability. As the owner, you are personally liable for any debts the company incurs. As a result, you could lose your home and all of your savings if a customer got injured on your property, you were sued for product liability issues or another problem arose.
A better option is to invest in an LLC license. LLC stands for limited liability company. As its name suggests, this license limits the liability of the owner. Depending on the unfortunate circumstances that might occur, an LLC license could potentially spare you from personal bankruptcy.
An LLC license is well worth the cost. They typically cost between $50 and $500 for a first-time application. However, after being granted an LLC license, you will only need to pay between $20 and $100 a year to renew it.
Specialized insurance coverage
You will probably need to take out an insurance policy for your property. This will cover any damages to your own business, as well as legal fees if a customer is insured. You will also need to take out Worker’s Compensation Insurance to protect your employees in the event of an accident.
However, there might be some more specialized forms of Insurance that you will need to consider as well. For example, media liability insurance protects your business against defamation lawsuits.
The majority of businesses won’t need this because they don’t post much information on Facebook, their company blogs or press releases. However, some companies publish more content and are at a higher risk of defamation lawsuits. Bloggers, traditional media companies, public speakers and publishers fall into this category. Therefore, they might need to consider media liability insurance seriously.
Data breach insurance is another option that some companies might need to seriously consider. Over 60% of companies that fall victim to a data breach file for bankruptcy within six months. Companies that store massive amounts of data are at a higher risk of this tragedy. Depending on the volume and nature of the data that you store, your company might need to consider investing in data breach insurance seriously.
Professional employee screening services
Finding the right employees is essential for any business that isn’t run entirely by the owner. But, unfortunately, this is a lot easier said than done.
Some employees might have stellar resumes and perform exceptionally during interviews. However, there might be a number of red flags that would come up if they were better screened. For example, around 40% of people outright lie on their resumes. Others have a history of misconduct or other problems.
A professional background screening service could help mitigate the risk of hiring these individuals. This could save your company tremendous embarrassment, customer loss, legal fees, and branding problems down the road if you hire the wrong person.
Qualified marketing services
Businesses of all sizes are outsourcing more of their marketing tasks than ever before. Using third-party marketing agencies can help them save time and get a higher ROI by leveraging the expertise of experienced marketing professionals.
However, some marketing professionals are not very qualified. It is important to do your due diligence when choosing a marketing agency. You want to be aware of their track record and appreciate their strengths and limitations. You don’t want to choose such a company lately.
Make the right investments when starting a business
There are a lot of factors that you have to take into consideration when you’re starting or growing your business. The right investments are going to make or break your company. It’s important to do your research and make these decisions wisely.