We live in a world full of entrepreneurs. People are tired of answering to their bosses and would much rather be their own boss… so what do they do? They go and start their own businesses. If you really think about it, it’s not such a far-fetched concept to believe. With the many advancements in technology, it has increased the number of entrepreneurs turned millionaires.
Do you know the industry that has turned these self-made entrepreneurs into millionaires? If you guessed technology, then you guessed right on the money… literally and figuratively! The technology industry has been on an upward incline and there aren’t any indications that it’s going to slow down anytime soon either. It’s allowed businesses to expand creatively not only on a national level but also globally. In fact, according to the New York Post, the US has more millionaires than the country Greece has people!
The innovations and advancements in technology have certainly changed the business world but it’s made a huge impact on the online business world. Online businesses have offered resources and business opportunities that were once unheard of but are now available, making it one of the most lucrative industries around. Now, the technology industry is increasing the number of successful and publicly-known entrepreneurs, right? Well, this increase in successful entrepreneurs is also increasing their risk of success and financial worth…for some entrepreneurs, their lives are at risk as well.
As a successful entrepreneur, you don’t want to have to worry about your assets being compromised or worry about any type of physical harm coming your way… the only thing you need to worry about is which luxury vacations you need to try! But unfortunately, criminals looking to gain a quick buck at your expense is something that entrepreneurs have to keep at the forefront of their minds at all times.
Do you know how much CEO fraud is happening right now? According to FBI stats, it’s a $12 billion scam that so many successful entrepreneurs have fallen prey to. The sad part about it is that is so easy for criminals to access their information when their private information can easily be found online…that reason alone is why it’s so important for high net worth entrepreneurs to protect their assets. Here are some of the best ways to protect your most valuable assets.
Don’t Skimp Out on Business Insurance
Investing in business insurance should come as a common-sense type of investment and should be incorporated into your budget. The whole point of having insurance is to reduce potential risks and appropriately handle various situations or issues that can happen when running your own business. From various forms of theft to property damage, insurance is always something that’s better to have and not need than to need and not have. Also, when investing in business insurance, you also want to take the time out to make sure you’re purchasing the right type of insurance for your business… the insurance a small business owner would need for a physical boutique will be quite different than the insurance an e-commerce business owner would need.
Stay Away From Sole Proprietorships
As a startup business, most owners tend to put their focus on building their team, marketing, and gaining new customers when really, their focus should be on finding a business entity. They figure they can just form a DBA and become a sole proprietorship. Now, the thing about sole proprietorships is that there is a risk for you to lose your personal assets in lawsuits and even in bank levies.
To fully safeguard and protect your assets, you’re going to want to establish an actual entity, like an LLC. This is a crucial part of protecting your assets. By forming an LLC, your personal assets are protected from any actions from the business that may cause financial ruin.
Keep Your Business Financials Separate From Personal Financials
In establishing an LLC it’s also important to keep your personal financials completely separate from your business financials… this will prevent any confusion in the future. This is one of the biggest mistakes business owners make… asset enmeshment. Asset enmeshment happens when business funds get mixed in with personal funds or if your business property is left under the owner’s name.