Even Small Business Owners Have Assets To Protect

Unfortunately, asset protection is often ignored or lost in the long list of things to do when starting or building your business. This mistake can cost you and your family when you least expect it.

What’s Involved in Protecting Your Assets?

Asset protection planning is a simple concept. First you catalogue all of your personal and business assets, such as bank and brokerage accounts, personal property and real estate, etc. Next you identify possible financial threats and then you insulate yourself from threats using a combination of different legal entities (trusts, corporations, limited liability companies, etc.) and insurance.

Properly done, this will help protect your current and future assets from loss due to the hazards of everyday life, such as lawsuits, business failures, and creditor claims.

To create an asset protection plan, you’ll need to review your potential exposure to financial loss, assess the different types of protection available, evaluate potential tax issues involved and analyze your ongoing personal financial needs, such as qualifying for mortgages and easily accessing assets when required. You should work with competent financial and legal advisors who are familiar with asset protection strategies.

Small Business Owners Beware

As a small business owner, there are several areas that warrant your concern. The first is to take financial liability issues into account when you choose the type of legal structure within which you’ll run your business (corporation, limited liability company, etc.). Once established, take care to follow the legal requirements of the entity you choose, so that you don’t jeopardize your personal assets. Some examples of this are not mixing business and personal expenses, not treating your business bank accounts as personal piggybanks, keeping necessary records, having the proper corporate officers and establishing a Board of Directors in corporations.

Personal guarantees are another common source of financial exposure. Lenders, landlords and leasing companies often ask for a personal guarantee from the owner of a small business. This means exactly what it says; you are providing a personal guarantee of repayment. If your business can’t make the payments the creditor can and will go after you and your personal assets.

Many entrepreneurs use personal credit cards and credit lines to get started. This may give you the credit you need, but it is ultimately a personal obligation. So if your business doesn’t have the cash flow to pay the bill, you’ll have to deal with these credit balances yourself. And the hefty finance charges can add up fast. Use extreme caution when leveraging personal credit for business use.

And then there is insurance. Small businesses often underinsure to keep overhead expenses low. This is risky. Losses do happen and they can quickly put an under-protected company out of business or hamper it severely. Be realistic when evaluating the type (liability, property, malpractice, etc.) and the amount of insurance you carry.

Be Safe, Not Sorry – Protect Your Assets

Depending on your individual situation, there are a variety of asset protection tools from which to choose ranging from the relatively straightforward, such as insurance, to the extremely complex involving off-shore trusts and multiple legal entities.

Seek the advice of business advisors and attorneys who specialize in this area. It is an investment in your financial security. Once you are on the wrong side of a lawsuit, it is too late to protect your assets.

Disability And Disability Insurance For Doctors

Disability has been described as a condition in which the sufferer is unable to perform optimally the normal day to day functions which they used to be involved in. For doctors disability is a condition in which they are unable to attend to their patients any longer. They cannot carry out surgeries or go to clinic and all the other numerous activities which they are usually involved in.

During the course of work and over a period of time, it is possible for a doctor to develop some kind of disability or the other which can seriously impair the functions of the doctor. Doctor Disability Benefitsdescribes the way which insurance can be used to ensure that doctors do not suffer unduly in the case of any eventuality and they get disabled and unable to work.

Some of these disabilities include

1. Cardiovascular diseases and diseases of the circulatory system- this might be due to the fact that long hours are spent standing up and working. It has been noticed that a lot of doctors suffer from heart diseases and circulatory system health challenges. When these sicknesses impair and affect the normal day to day function of the doctor then his ability to function and attend to his clients is impaired.

2. Musculoskeletal illnesses- the long hours of standing and not sitting down can also affect the bones and joints of doctors. This can lead to illnesses such as rheumatism, arthritis and the likes. One problem with these illnesses is the amount of pain which sufferers go through over the course of the illness. This suffering makes it most of the times impossible for doctors to attend to patients and perform surgeries.

3. Mental disorders- doctors are also human like the people they treat and so they are also prone to suffering from whatever illness which humans suffer from. One of such problems is psychiatric illness. Some doctors while on the job have been seen and reported to have exhibited erratic behaviour. When this wrong behaviour was brought under scrutiny, they found out that the doctors were actually suffering from one mental illness or another ranging from plain depression to schizophrenia and even manic depressive disorders. All these illnesses will certainly affect the doctor’s ability to function optimally and properly. In such an instance such a doctor might be asked to stop working.

All the illnesses mentioned above and much more can deter a doctor from being able to continue to function well in the capacity which is expected of him. When a doctor suffers from any of such disabilities, it will be a thing of sadness if such a doctor does not have an insurance plan. A disability insurance plan is a kind of insurance plan. If a doctor takes out a policy which has disability insurance as the thrust of its focus, such a doctor is better placed to ride out the waves of life which such disability has thrown at him.

Young Entrepreneurs Business Building Tips

Get paid doing what you love! Become a young entrepreneur and start the business you’ve always have pictured in your head.

In today’s age, building a business has never been easier and the potential rewards are larger than ever. While most of your friends are scrapping by, you could be living the life of your dreams and profiting from your business. And thanks to the Internet, young entrepreneurs can build a global business that puts you on the same playing field as major corporations.

Before starting a business, there are several steps future young entrepreneurs can take that will facilitate your success. There are seven foundation steps that will help you to build a profitable business, fast.

Get your mind right. The first step to building a profitable business is for young entrepreneurs to develop their mental muscles and start thinking with positive end results in mind. Getting your mind right will allow you to keep focused and on course even when others try to contaminate you with negativity.

Set goals. Before starting your business, day dream about how you see this business growing and picture your day-to-day role within your company. Take your dreams from your mind and put them on paper. Put your dream on paper with a plan and you have created goals.

Once you have your goals written down, review them often. The more you read and believe your goals the faster you will get to where you want to go. Before going to sleep or when you wake up take a few moments to visualize yourself accomplishing your goals. It’s true – what you think about you become.

Focus on the greater good. This is especially true for young entrepreneurs. By starting a business that creates a positive change in the world you will reap the rewards. When you start a business that helps people, you’ll have positive forces working in your favor. So not only does doing the right thing help others, eventually it helps you, the Good Samaritan, as well.

Build your credit. Having excellent credit is a young entrepreneur’s best friend. With good credit you will have access to low cost capital. When your starting out this isn’t so important; however, as your business grows, you may need business loans to expand your business faster. That’s when having good business credit will pay off.

Open up the Right Accounts. An important piece of a young entrepreneurs success is to have the right bank accounts set up. A checking and savings accounts should be set up as soon as possible. The sooner you establish a relationship with a bank, the more benefits you will receive in the future.

Be sure to choose a bank that has services you need now and will need in the future. Being a young entrepreneur, you want to find a bank that offers business loans, merchant services, business accounts and additional services you may need as your business starts to take off.

Build your team. With twenty to forty percent of your income going to pay taxes, the first members on your team should include a qualified tax advisor. Be sure to choose a tax advisor that has experience preparing business taxes.

Another member of your team, that you need before you invest money into a business, are mentors that have experience in the business you want to start. Having a mentor does not mean you need to hire a personal mentor coach. In today’ age, a quick search online and you can find books, videos and webinars of people that have experience in the business you’re looking to start.

Start a business you like. The last and most important piece of advice for young entrepreneurs is to choose a business that you enjoy. What is it that you’re into? Figure out how you want to live, how you want to spend your days and with whom you want to work with – then find a business to start that fits your lifestyle goals.

DO IT! Now that you have the foundation in place, get going on your business idea.