Author: Min Tang

Categories
Work Life

Overworked?

It’s well-known that entrepreneurs must dedicate a lot of their time to getting their businesses off the ground in order to be successful. It’s not uncommon to hear of a business owner working 60 or more hours a week in pursuit of that success. However, this amount of work can have a major negative impact on one’s mental and physical health.

Tips to Cut Down Working Hours

To address the issue, busy professionals need to find a way to work smarter and gradually reduce the number of hours spent running their businesses. That’s why we asked 12 entrepreneurs from Young Entrepreneur Council (YEC) the following:

“Working hard is important, but working too hard can impact your health. What’s one practical step busy entrepreneurs can take to reduce a 60-hour work week to 30-40 hours?”

1. Timeblock

“Put your rest activities into your calendar just as much as you put your work activities there. It’s the only way you can effectively force yourself to take time for yourself.” ~ Nicole Munoz, Nicole Munoz Consulting, Inc.

2. Let Your Experts Work

“It may sound obvious to some people, but not so obvious for the others: As a business leader, you don’t have to do everything by yourself. Your main job is to mentor and coach the people who work on all the elements of the business. Take a look at all the tasks that you do. I’m sure you already have dedicated experts in your team to deal with some of these. Then, fire yourself. Let people work.” ~ Solomon Thimothy,OneIMS

3. Divide Tasks By Size

“I divide tasks that I need to accomplish by size. Then, I figure out what size task I’m best able to complete at a certain time of day. Since I’m a morning person, I find it easier to accomplish large tasks quickly at the beginning of the day and then smaller tasks toward the end. However, you might prefer working on large tasks toward the end of the day. It depends on your productivity habits.” ~ Bryce Welker, Beat The CPA

4. Be Realistic

“We’ve all heard that people overestimate what they can do in a week, but underestimate what they can do in five years. If you want to keep your work weeks to a minimum, start being honest about what you can accomplish in a week. Identifying the most important thing you can be working on to affect the bottom line of your company each day is key. Then do that 40 hours per week.” ~ Matt Wilson, Under30Experiences

5. Leverage Automation

“If entrepreneurs aren’t leveraging automation yet, then they need to. Marketing automation performs routine, everyday tasks for you so you can spend your time wisely and still get more done. It’s easier to stay productive and meet deadlines when you have technology working for you.” ~ Stephanie Wells, Formidable Forms

6. Set Clear Boundaries

“Only with clear boundaries for their time will a driven entrepreneur find that balance. Many successful entrepreneurs leave their industries after a few short years to build a family or pursue their passion because they are unable to have both. The only way I am able to “work to live” is by design, and I assure you it’s worth the effort. Set clear boundaries and respect them.” ~ Reuben Yonatan, SaasList

7. Cultivate and Build Leaders

“The right mindset, leadership and systems are key. In order to greatly reduce your time, you’re going to have to trust people. Then you need to cultivate and build leaders within your organization. To be successful you should have a system where those leaders routinely meet with clear goals and agendas around managing and growing the company. That’s it. Enjoy your time off.” ~ Kevin Getch, Webfor

8. Outsource Tedious Tasks

“If an entrepreneur doesn’t have the resources to hire in-house and delegate certain tasks, they can outsource tedious tasks that don’t generate revenue. For example, the following tasks could be outsourced: blog content creation, social media marketing, website design, payroll and bookkeeping.” ~ Kristin Kimberly Marquet, Marquet Media, LLC

9. Recharge Between Work Sessions

“Avoiding long hours is hard, but taking breaks in between tasks can alleviate the pain. If long hours span from early strategy calls through late-evening client meetings, make the most out of your business day. Hit the gym, take lunch outside, listen to an audiobook. Recharging between other energy-intense sessions is a long-lasting exercise worth trying out.” ~ Mario Peshev, DevriX

10. Schedule Hard Stop Breaks

“Scheduling hard stop breaks into your daily routine will help you balance work with the other parts of your life. Break your day into multiple work shifts to create a natural separation in your schedule. Neglecting this aspect of your routine can be harmful to work and oftentimes lead to counter productivity.” ~ Jordan Edelson, Appetizer Mobile LLC

11. Set Goals Outside of Your Career

“Entrepreneurs are goal-driven, and usually get overly absorbed in career goals. I like to have fitness goals that dictate a workout schedule, for example. I recently took classes in scuba diving and boat sailing, as well, to get out of the office and focus on something new and adventurous. Leave the phone at home and go explore the world.” ~ David Boehl, GoLastMinute

12. Empower Your Team

“Empower your team. Too many entrepreneurs think they need to still have their hand in every single thing at the company, which is draining to them and ultimately discouraging to the employees who are ready to step up and take on more. I did this years ago when I had a major surgery and had to delegate responsibilities during my recovery and then just didn’t take all of the responsibilities back!” ~ Kelsey Raymond, Influence & Co.

Overworked? 12 Practical Ways Entrepreneurs Can Cut Down Their Hours [Smallbiztrends]

Categories
Teamwork & Leadership

Aligning Culture and Brand Values

If you were to ask one of your employees what your brand’s core values are, would they know the answer? How do you think they would respond?

Hopefully, your company already has some firm brand values, covered in your initial business plan or your brand guidelines. If not, now may be a good time to consider the nature of your brand and draft those core values.

But assuming those core values are in place, how can you make sure your employees are all working in line with those core values? And why is it so important in the first place?

The Importance of Brand Alignment

Let’s focus on why this brand value alignment is so significant to your company’s success:

  • Direction and motivation. Core values bring life to your brand, and define what your organization is all about. For existing employees, this can be a source of inspiration and motivation. For new and prospective employees, it’s an indication of whether they fit with your corporate culture.
  • Consistency. Brand values also help you keep your team members working consistently with one another. Your employees will find it easier to form bonds with one another, and work collaboratively on projects.
  • Belonging and morale. When employees feel like they fit with the values of a brand, they develop a sense of belonging with the company. This leads to higher morale (and therefore, productivity), and could increase employee retention as well.

Strategies for Aligning Culture and Brand Values

So what can you do to keep your employees aligned?

1. Hire the right candidates. Everything starts with the people you hire. The interview process should help you determine, straight away, whether someone’s individual values fit with, are close to, or deviate strongly from your brand values. Even if someone has the appropriate experience, you should pass on them if they aren’t going to fit the culture you want to create. The right people will require less conditioning, will be more likely to stick around, and will even contribute to a healthier, more value-encouraging environment.

2. Use signage to remind employees of values. Office signage can have a powerful effect on employee values and productivity. For example, you could print a massive sign for each of your brand’s core values, and hang them up throughout the office as a reminder of how those values are supposed to be displayed. You could also display motivational signs, designed to subtly showcase your brand values in action, such as reminders of the value of teamwork. Conceptually, it might seem tacky, but these visual cues can radically change employees’ moods, mind states, and patterns of behavior.

3. Demonstrate values from the top down. Employees look to their leaders as role models for the culturethey’re going to embody. If you want your lowest and newest employees to support your brand values, they need to be on display from your highest-ranking leaders. Encourage all your executive officers, leaders, managers, and supervisors to display these brand values in their own positions. From there, it’s only natural that the rest of your team will follow—assuming those leaders are respected.

4. Implement and discuss values in employee reviews. If you conduct annual or semi-annual employee reviews, take that time to discuss each employee’s knowledge and embodiment of your brand values. Gauge how they’ve performed in each dimension (such as embracing change, pursuing growth, or being honest), and ask them how they feel about their performance in each category. It’s a good way to remind employees what your core values are, get their opinions on how those core values relate to their individual work, and give pointers on how to do better in the future.

5. Publicly reward people who follow or exemplify your brand values. Finally, take the time to publicly acknowledge and/or reward employees who do a great job of demonstrating core values. For example, you might call out an employee who demonstrated the nature of team spirit in a collaborative project, and treat them to lunch or give them the rest of the day off. This will make the employee in question continue this pattern of behavior, and encourage your other employees (who witnessed the reward) to strive for similar levels of adoption.

5 Ways to Keep Your Team Aligned With Brand Values – and Why You Should [Smallbiztrends]

Categories
Communication Skills

Pitching To Venture Capitalists? Know These First

Readying your slide deck for a VC pitch?

In addition to a killer presentation, you need to be able to answer some specific questions.

Having raised venture capital for my first company, Wordstream (which sold for $150 million last year), I’ve got the inside scoop on the exact kind of questions investors will ask you.

In an interview with Parul Singh, a principal at the venture capital firm Founder Collective, I asked her what she’s wondering as she’s sitting across the table during a pitch.

Prepare for these VC Pitch Questions

Take a look at 10 questions investors are wondering across the table — even if they don’t ask them out loud.

1. Is there a big enough market opportunity for your pitch to be compelling?

“What is compelling depends on the size of the fund. Given the risk involved — the majority of startups fail — many investors expect any single investment to return the entire fund. So we want to know if you can demonstrate realistic sightlines to that number,” explains Parul.

“We’re not expecting you to map out all the revenue projections until that point, but you need to show that A) you can build a real business, and B) you’re tackling a believably big market opportunity (‘believably’ here means that you’re not pointing to the total spend in your space as the market opportunity),” says Parul.

2. Is your ask compatible with what the fund invests in?

“Are you raising a series B round, while we only invest pre-seed and seed?” asks Parul.

3. Does your idea conflict with anything else in the fund’s portfolio?

“We take pride in serving the best interests of our portfolio companies,” says Parul.

If you don’t even take the time to check whether the fund has potential conflicts of interest, it’s a clear indicator that you didn’t do your homework — and a huge red flag.

4. Are there any obvious obstacles to succeeding in this market?

“As investors, we are looking for the best opportunities for our own investors. Most investors will favor a sector where there are acquisition possibilities and where you can grow quickly,” says Parul.

If you’re in a sector where you need to spend years getting regulatory approval or closing deals, never fear: While other investors may be dissuaded, there are investors who specialize in projects of that nature — just make sure that you seek them out.

5. Do I believe in this team?

To “believe” in a team, Parul needs two things:

1) Compelling evidence that the team can execute. For example, can you show traction or LOIs from potential customers?

2) Meaningful commitment to the concept. Have you taken the plunge to be a full-time founder?

“While there absolutely are financial constraints that may prevent founders from leaving their jobs, I’m left wondering if you are asking me to commit more than you have,” says Parul.

“If you want to steer toward financial prudence, moonlight on your idea until you have some traction you can bring to the table — or pre-sell your company to customers, not just me,” she says.

6. Is this product or service exceptional?

“Rough edges are fine on a B2B product, where a clearly expressed value proposition matters more,” says Parul.

Enterprise B2B customers generally will cut you slack when it comes to the UI/UX of your product, since their primary concern is to solve their business problems.

“But if you’re going direct to consumer and your product and brand don’t feel world class, I might question if you have what it takes to retain the average consumer,” says Parul.

7. Are the founders knowledgeable about key market dynamics and competitors?

“This advantage may not be as evident in an early-stage startup (where founders are wrestling to get product, sales, and team mechanics to work), but as a company grows, competitiveness increasingly matters,” says Parul. “The No. 1 and 2 players in a space typically may win big, while other companies may not make it at all.”

Investors want to be confident that you know the big-picture dynamics that will affect your company long term so that you’ll be able to beat out your competition.

8. Is there founder/market alignment?

“Your deep knowledge of your space is your unfair advantage — we’ve seen this time and time again with our most successful companies,” says Parul.

For that reason, investors always want to take a deep dive into why a founder is tackling a particular problem.

9. Do I want to commit to this problem for the next few years?

“Growth is a process that can take time, and there will be times that you and I both question our commitment to the problem,” says Parul. “Beyond just the hard metrics, most investors want to truly care about the problem you’re solving.”

10. Am I excited about working with you?

“In a world of inflated metrics and Steve-Jobs-channeling bluster, VCs crave honesty — in other words, do you treat me as a partner, or are you only telling me the good stuff?” says Parul.

From an investor’s perspective, working together will be much more meaningful and effective if the prospect is willing to be transparent and solve hard problems together.

Thinking about Pitching your Business Idea to a VC? Be Able to Answer 8 of these 10 Questions [Smallbiztrends]

Categories
How-To Guides

Calculating A Running Total In Excel

Learn to create cumulative sums in Microsoft Excel with these step-by-step instructions and screenshots.

  • Also known as a cumulative sum, a running total is a commonly used function within the educational and business world.
  • The process of creating a running total in Excel involves three simple steps.
  • Running totals are used in retail stores, for sales and at sporting events, to name a few applications.
  • This article is for business owners and professionals who want to learn how to create a running total in Microsoft Excel. 

Creating a running total (or cumulative sum, as it is known in Excel) is easy once you get the hang of it. Many business owners use cumulative sums to keep track of expenses and revenue, employee hours and inventory management.

The idea behind a running total is to take a column of numbers and, next to it, show the running total of those numbers. You can use both positive and negative numbers in a running total, so you can put your sales and withdrawals together if you like.

What is a running total?

A running total, or cumulative sum, is a sequence of partial sums of any given data set. A running total is used to display a summary of data as it grows over time. This very common technique is used daily by students and professionals tasked with using Excel to compute and calculate an array of complex data and equations. Additionally, having a running total can save you from taking the time to record the sequence itself if it’s not vital to know the individual numbers being used.

How to create a running total in Excel

1. Start with =SUM. Click on the cell where you want your running total to begin. Next, select the SUM function on that cell. But instead of highlighting cells within the parentheses (by dragging the cursor over the cells you want to include in the equation) as you would if you were adding a column of numbers, you need to create what’s called an “absolute reference,” followed by a “relative reference.” Don’t worry; it’s not as complicated as it sounds. The next step covers how to do it.

2. Create a running total formula. You must use the dollar sign in this formula, even if the numbers you’re tallying are not dollar amounts. In our sample Excel workbook, let’s say you want a cumulative total posted in column C. In cell C1, you would type =SUM($B$2:B2). This creates the necessary relative reference point (B2) and absolute reference point ($B$2) for your running tally.

What are these references? Relative reference points can change when you copy and paste a formula from one place to another. For instance, if you copy a formula two rows to the right, the relative reference point will shift two rows to the right. Absolute reference points don’t change when copied.

3. Click the bottom-right corner of the cell with the formula in it. Then drag down as far as you want the running total to apply. When the formula is dragged down, the absolute reference point, $B$2 stays the same. The relative reference point B2 changes as far as you drag your cursor down to B3, B4, B5, etc.

For example, if you have a March sales value of $500, an April sales value of $650 and a May sales value of $700, you’ll enter these values under a “sales” column. To gain the running total, you’ll enter $500 in the top right column and use the formula above to calculate the running total. Next, you’ll drag your cursor down to encompass April, May and June sales. The running total will then display $500, $1,150 and $1,850, respectively. Then you’ll have a running total you can add more monthly sales values over time. That’s all there is to it.

What are some uses for a running total?

While this calculation may sound a tad complex, it is actually a rather common concept that many of us come into contact with regularly, regardless of whether we are the ones using it. Here are some of the uses for a running total:

Cash register operations. 

One of the most common examples of running totals that you are regularly exposed to involves the use of cash registers. In particular, cash registers display a running total of various products as they are scanned into the system. Additionally, they typically keep a running total of all transactions being made throughout the day.

A cash register can house a reporting function that shows running totals of everyday functions in the store, including the number of customers at certain times of the day and the most popular items either of the day or all time, depending on the category. Using a running total allows retail stores the chance to identify trends among customers and better their operations.

Game scoreboards. 

Another common application of running totals is the scoreboards at sporting events. Although you see every point as it hits the board to understand how the end score is calculated, in the end, the final score is the only number that matters. Additionally, the game of cricket, in particular, is a great example of a running total. Each time a player scores a run, it is added to the total. Therefore, the total score is simply a running total or summation of the runs.

Sales positions

If you work in the sales sector, you are likely exposed to various running totals. For instance, if you have a quota, you may be using a running total to keep track of your progress until your quota has been reached. This is also true in other industries such as telecommunications or banking, where the number of sales, new clients, and products sold can relate to job performance.

Managers can use these running totals to evaluate this performance monthly, quarterly or yearly. These running totals can also determine real performance against targets over time. This data can then be used to troubleshoot what is required to change when targets are not met.

Year-to-date calculations

One of the top uses of running totals is year-to-date calculations. A year-to-date (YTD) calculation is used to record a certain function or activity (usually financial) from a certain date to the end of the year.

For instance, you may see an array of year-to-date calculations on your pay stubs. This is an example of a running total because it keeps track of the various payments made and taxes collected to give you a final total at the end of each year. These final totals are then transferred onto W-2 forms and used for tax purposes. Year-to-date calculations are also used to calculate rental income, the financial standing of a business or a stock return.

Inventory totals

Another common use of running totals is the method a company uses to keep track of inventory. Companies must record the number of items sold and compare that number to how many items they have in stock, so this is an example of a running total. For instance, if you have  1,000 cookies in stock at the beginning of the week, every sale would be subtracted from the overall stock and result in a new total after each transaction.

Balance sheets. 

If you have a job that uses balance sheets, this can also be an example of a running total. Balance sheets can also show you a clear picture of any assets and liabilities at one point in time. Balance sheets allow you to keep an itemized list of things such as expenses. After new items are added, you get a new total.

Bank balances

Your bank statement gives you an itemized list of what is being deposited and paid out every month. After each transaction, you get a new total. When you go online to view your account, you will see your running total.

Gas mileage

Ride-sharing companies and delivery services also employ running totals. Given that drivers are often paid by the mile, a running total keeps track of how much a person should be paid. This is also true when creating expense spreadsheets if you have to travel multiple days for work.

Calorie counts

Running totals can also be used to count your calories throughout the day or week. People who use a caloric count to lose weight can use an app or create a spreadsheet that allows them to input the calorie count of each meal to calculate days’ or weeks’ worth of calories ultimately. The app or spreadsheet will start with zero calories and create the running total dependent on what they eat.

How to Calculate a Running Total in Excel [Businessnewsdaily]

 

Categories
Planning & Management

Small Business Insurance

When making financial decisions for your small business or startup, it can be tempting to cut costs by only signing up for the business insurance you’re legally required to have. However, just one uninsured accident can cost more than your monthly premium – it can cost you your business. With many types of business insurance available, it can be tough to know just which kinds you need. Small business owners should analyze their needs to make strategic decisions about which plans are right for them.

What is business insurance, and why do you need it?

When accidents happen, you want to be protected. Business insurance protects your business from financial loss during times of crisis or unforeseen events. There is no one-size-fits-all business insurance; instead, there are several types of insurance that can protect your business, and the exact combination of policies you need depends on your unique circumstances.

“[Business insurance] assists in legal payment, claims, employees’ issues and business property in case anything goes wrong because of your business activities,” Phil Crippen, business advisor at John Adams IT, told Business News Daily. “It can help towards the cost of compensation claims and legal fees, as well as damage to your property or employee-related issues.”

The benefits of insurance are often related to financial and legal protection. Insurance can protect you from a variety of losses – for example, if an employee is injured, your office building burns down, a client tries to sue you, or your business partner passes away. The right business insurance can help you recover and continue operating your business.

“As a business owner, you define what the right insurance is going to be,” said Seth Morton, MBA, licensed insurance agent and owner of Morton Insurance. “Insurance itself is simply an agreement by an insurance company to pay the insured for business losses. To determine what should be insured, a business owner needs to analyze his risk. Once the scope has been established, the owner can evaluate the cost of insurance versus the risk of loss.”

Key takeaway: Business insurance gives you financial and legal protection in a crisis or unforeseen event.

What does business insurance cover?

Business insurance can cover a litany of things, depending on the type. It ranges from basic to comprehensive, so you will want to choose coverage that adequately protects your property, people and business processes.

Morton listed 10 common aspects of a business that insurance can cover and protect:

  • Lives of the business principals
  • Lives of key employees
  • Lives of an employee group
  • Long- and short-term disability of owners and employees
  • Liability for injury to owners and employees
  • Property and casualty coverage for buildings and machinery
  • Liability for and damage to business transportation assets
  • Product liability
  • Employee health insurance for sickness and injury
  • Workers’ compensation for earnings lost due to injury

Key takeaway: Business insurance can financially and legally protect the main elements of your business, including your property, people and business processes.

How much does business insurance cost?

The type of business insurance you purchase dictates your monthly costs. According to Progressive, the average cost of business insurance is $53 per month for general liability and $85 for workers’ compensation. Some business owners purchase a business owner’s policy, which combines liability and property coverage in one policy. The average cost for a business owner’s policy is $80 per month.

Another factor that impacts how much you pay each month is your business type. For instance, builders pay a lot more for business insurance than accountants. The reason for the increase is related to the hazards associated with the job – there is a greater inherent risk of injury and potential damage if you operate a construction firm versus if you run a small accounting firm.

Business size, or the number of employees your company has, is also a cost consideration. Each employee poses a potential risk for your business, which raises your monthly premium.

Finally, coverage amounts influence cost. The higher the coverage, the more you will pay. One way to offset the cost if you choose a higher coverage is to have a higher deductible (which is the amount of money you pay out of pocket before the insurer will pay for a covered loss). Assuming greater risk can lower your monthly premiums. Many insurance companies offer you a choice of the deductible. The amounts can range from a few hundred dollars ($250) to thousands of dollars ($2,500).

In the event of a claim, business insurance is normally payable directly to the company. As an example, if your business is damaged during a fire, you would file a claim. An adjuster assesses the damage and decides on the cost to repair or replace the damaged property or items. Once you pay your policy’s deductible, the insurance company cuts a check to the business based on the parameters of the policy.

Types of business insurance

There are numerous types of business insurance available, and you will likely need a combination of multiple policies to protect your business. It is highly recommended that you speak to an insurance expert to identify the specific policies necessary for your company. However, these are some primary types of insurance that most small businesses will need.

  • Business owners policy: A BOP is usually a combination of general liability coverage (e.g., bodily injury, property damage, personal or advertising injury, medical payments, products-completed operations, and damages to premises rented) and property insurance. You can also add an employment practices liability insurance (EPLI) policy to your BOP to cover your employees.
  • Business interruption insurance: Also known as business income insurance, this is one of the most common types of business insurance. It helps you recover lost income and pay operating expenses (e.g., mortgage, rent, payroll, loan payments, taxes) if your business is forced to shut down because of disasters like a fire, flood, theft or collapsed building. It can sometimes be bundled with your BOP.
  • Management liability insurance: Another comprehensive insurance package you may need is management liability insurance. This often combines insurance coverage like employment practices liability (essential protection for businesses with employees), fiduciary liability, and directors and officers (D&O) liability (essential protection for businesses with a board of directors).
  • Workers’ compensation insurance: If an employee is injured at work, workers’ comp can cover their medical costs or lost wages. Workers’ comp and disability insurance are often required by law.
  • Errors and omissions (E&O) insurance: If you offer professional services, you will want to acquire E&O insurance, also known as professional liability insurance. This type of coverage protects you in the event that a customer or client claims your services caused them financial distress. This is especially important for consultants and financial advisors.
  • Product liability insurance: Small businesses often need product liability insurance to protect themselves against product-related claims. If your product causes damage or injury to a third party, or your business faces a product-related lawsuit, product liability insurance can help cover your protection and security.
  • Auto insurance: If you or your employees use vehicles for business purposes, you will need some form of vehicle insurance. Whether you need personal or commercial auto insurance depends on the type of vehicles you use, what you use them for, and how much coverage you need.
  • Cyber insurance: Every small business owner should protect their data and technology with cyber insurance. If your business technology is hacked or data is leaked, cyber insurance (data breach insurance or cyber liability insurance) can help cover the costs of the damage.

These are just a few of the common types of insurance small business owners should consider. You should seek professional assistance to find the coverage that best protects your specific business.

Key takeaway: The types of insurance coverage you need depend on your specific business, as well as the laws regulating your state and industry.

How to determine what types of insurance your business needs

The best insurance for your business depends on your unique needs. To determine what types of insurance you need, you will have to undergo a careful analysis of your business. It is always advisable to speak with an insurance expert to find the right combination of coverage to keep your business legally compliant and financially protected.

Follow these four steps to determine what insurance your business needs.

1. Analyze your legal responsibilities and business assets.

First and foremost, you should do a careful evaluation of your business and assets to determine what you want to insure. What insurance are you legally required to have, and where do your additional liabilities lie?

For example, Morton said a machine shop might want to insure employees for injury, whereas a jeweler might want protection against theft. Owners of a large distribution company would insure inventory as well as employees, as required by law.

“Each state has different requirements, and business owners should consult with professionals in the state where they operate to determine what to insure,” said Morton.

2. Analyze your risk.

Analyze your additional risk and liability. This will help you determine which insurance will offer the right type of protection. For example, if your business is situated on the bottom floor of an office building in a region prone to floods, you will likely want comprehensive flood insurance, whereas a business operating in a dangerous industry will likely want insurance to cover the risk of its employees getting injured.

“In general, careful analysis of business operations, including human resources and facilities, helps determine where the risks are and what should be insured,” said Morton. “Beyond what could be called insurance for the operation of the business, there is the question of succession planning. What is the plan if an owner dies or is incapacitated, and how is it funded? It is an area often overlooked by business owners and requires professional help to set it up correctly.”

3. Determine how comprehensive you want your insurance to be.

Depending on what you are insuring, you may need a basic level of insurance or comprehensive insurance that covers all aspects of the potential loss. You will have to factor in how costly the loss would be and assess the probability of it happening. This will minimize the risk of overpaying for coverage you don’t need, or skimping on coverage that is imperative for your protection.

4. Pick a provider.

Insurance providers aren’t all the same. Policies, premiums and coverage vary, so do some research to find the best one to protect your business. Choose a few top providers, and compare them by policy coverage, cost, reliability, customer service and how they handle claims. This will help you find the best insurance provider for your business.

Key takeaway: To determine what business insurance you need, you’ll need to analyze your operations, assets, risks and liabilities. Then, determine how comprehensive you want your policies to be and compare providers.

Editor’s note: The contents of this article do not offer legal, business or insurance advice related to the needs of any specific individual business. Please consult your attorney and/or small business insurer to discuss your situation and coverage.

Your Guide to Choosing Small Business Insurance [Businessnewsdaily]