Prepare Yourself for These Home-Based Business Risks

Prepare Yourself for These Home-Based Business Risks

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Running a business from home is the dream, right?

You can set your own hours. You can work in your pajamas. And you don’t have a boss breathing down your neck every twenty minutes or so to make sure you are getting your work done.

Still, despite the informality of a home-based business, it’s not all sunshine and rainbows. There are risks involved, and chances are, you might not be prepared for them.

Risk #1: A lawsuit

Why should somebody sue you?

Well, what if you were to welcome a client into your home and they suffered an injury. While your home isn’t (we assume) as big a health and safety nightmare as a construction site, a client could still trip over your rug or fall in your driveway it is was slippery. What if you sold somebody a defective product? Mistakes do happen, and if you didn’t compensate your customers ahead of time, they could take you to court.

To protect yourself, you should do two things. First, consult a lawyer early on in your business, so you know areas of legal risk. Secondly, consider taking out home business insurance, as this will offer you some financial protection should you be threatened with a lawsuit. 

Risk #2: A data breach

Hackers are as interested in your business as they are anybody else’s. So, never assume that because you are running a small business from home, that you will be off the radar of any nefarious cyber criminals. Far from it, as working from home, they might assume they will have easier access to your financial and customer information. 

To protect yourself, you should take the necessary steps, such as firewalling your computer and installing the latest antivirus software. You should password everything too, and seek the professional advice of an IT company which offers help desk & server support. By taking these necessary steps, you will make life harder for any potential hackers, and consequently, you won’t have to suffer the damage to your reputation that a data breach could cause. 

Risk #3: Personal illness

If you are reliant on your business for your income, you might face a financial struggle if you are unable to work for a period of time because of an illness. Being prepared for such an eventuality is a must.

To protect yourself, there are a couple of steps you could take. For starters, you should put a portion of your income into an emergency fund. This way, should you fall ill, you will still have some money to live on while you recuperate. Secondly, consider outsourcing some aspects of your work, or hire somebody to work with you. While both options can be expensive, your business will be able to run without you when you’re unwell, so you might not suffer a financial shortfall as a consequence. 

Finally

Many of us work from home and think little about the risks that we have suggested today. However, it is important to prepare for them, as you never know when disaster might strike in your business. Follow our advice then, and should you have any other tips for our readers, be sure to share them with us.

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