It will take your company many years to gain assets, but you might lose them if you are not careful. You need to protect your assets in the best ways. There are several ways you can use to safeguard your company assets.
1. Use Proper Contracts and Procedures
Your creditors are always waiting for a chance to go after your assets. To avoid such, do not act fraudulently. Follow the correct procedures, and sign agreements with transparent terms and conditions. Have your assets under the company’s name, and if you deal with rentals, then have a lease agreement with all your tenants. When you need someone to help protect your assets, hire professionals through legal channels. The law is strict on asset ownership, and if they find any loophole in your procedure and contracts signed when buying the assets, you will quickly lose them.
2. Purchase Business Insurance
Insurance is essential for every business. Purchasing appropriate business insurance is a significant way of protecting your company assets. Your assets are at risk of damage by natural calamities, fire, or theft. With the right business insurance, you are at a lower risk of losing your assets. Insurance is also a requirement by law as you start up a company. Be keen about the insurance you purchase, because different insurances offer different coverages.
3. Apply Measures Against Robbery and Theft
Many ill-minded people will never work hard but always want to destroy or steal other people’s property. It would help if you protected your company assets from such people. The best way is by having security guards watching over your assets. The security you use should be high-level, and you can work with security firms to get the best.
You can install CCTV cameras and ensure your company is under 24 hours surveillance. The cameras will record all activities on the premises, and it will be easy for you to trace any odd activities. Ensure to have strong unbreakable windows.
Additionally, you can safeguard your investment by applying protective glass coating to your office or building windows and protecting them against chipping, ultraviolet rays, and weather conditions.
4. Proper Documentation of Assets
You need to have proper documentation of your company assets. Have a record of everything the company has, including cars, machinery, equipment, and money in operations. For the purchased assets, have the receipts, and the warranty documents, if any. Knowing what you have makes it easy for you to protect them. Keep the records well, and update them when you purchase something else or remove a particular asset. The documentation will help you track the assets and prevent them from mishandling or getting lost.
5. Put Some Assets in Spouse’s Name
If your spouse has a less risky career, put some assets under her name. When the asset is in your spouse’s name, your creditors will not be able to access them. This would be best if you put the most valuable assets, the ones which you cannot afford to lose. However, before making this decision ensure your spouse is reliable and trustable. Everyone wants their marriage to last forever, but issues arise sometimes, and with the assets under their name, you might find it hard to handle the problem.
6. Separate Your Business and Personal Assets
Putting your business and personal assets together puts you at high risk of losing everything. Separate your business and personal assets so that your creditors cannot have much to come for. A good example is the home exemption, where you protect your home so that you cannot lose your home in case of a financial crisis. Another way is by having a separate bank account for your business and different credit cards for the company. With that, you will avoid spending business money on personal issues.
7. Apply Trademarks, Patents, and Copyrights
The competition in the business world is tough, and people can copy what your business offers to get you out of the market. This applies to intellectual property, and they are essentially physical assets. Register all your IPs, and have a brand that protects your trademark. When it comes to methods of operation, keep them to the business, and ensure people have no idea how you come up with your products.
Closing Thoughts
As a company owner, you understand how critical your assets are. The assets are the things that keep your company running, and you need to protect them.
