Congratulations on taking the step to become an entrepreneur. Balancing daily operations while growing a business is challenging, but the right structure and tools will keep you ahead.
Here are the three essential steps to transition a side hustle into a legitimate business venture:
1. Create a Business Plan: Write down your Executive Summary, Market Analysis, Products & Services, Marketing and Sales Strategy, Operations Plan, and Financial Plan. A formal plan gauges viability and prepares you to secure funding if needed.
2. Establish Legal Structure: Register your Corporation or LLC with the Secretary of State, file for a DBA with your County, obtain a business license from your City, and secure an EIN from the IRS website.
3. Secure Insurance: Approximately 45% of businesses close after a major financial crisis that proper insurance could have covered.
As an insurance brokerage, we recommend considering the following coverages:
– General Liability: Covers bodily injury and property damage to third parties.
– Professional Liability: Covers financial losses to third parties resulting from your services, advice, or equipment failure.
– Bond: Fulfills financial responsibilities required by contracts or licensing in lieu of a deposit.
– Commercial Auto: Supersedes personal auto limits to allow business use, unlimited mileage within a specific radius, and higher coverage options (e.g., $1,000,000 per claim).
– Workers’ Compensation: A no-fault coverage that pays for medical bills, rehabilitation, and lost wages for employees, volunteers, or owners injured on the job.
When purchasing commercial insurance for the first time, please keep in mind:
– Premiums and acceptability are based on your annual Gross Sales, Employee Payroll, or both.
– Commercial insurance is a contract requiring full disclosure of your business operations.
– Policies are audited at the end of the term using State quarterly reports and IRS annual filings to verify the accuracy of your application.
Our brokerage helps new and mid-size businesses grossing up to $25,000,000 annually secure the right coverage. If you provide the necessary details, we will manage your risk management needs so you can focus on running your business.
At TCS Insurance Brokers, we’re here to help Business Owners protect their assets and be prepared for the liability risks that come with growth. Whether your shopping for better coverage, requiring advise on risk management, or need a referral for a reliable service provider, our Commercial team has you covered.
If you would like us to review your current policy or help you compare options to ensure you do not have critical gaps, please reach out. —proactive steps today can save you stress and money tomorrow.
Blog post written by Domingo Ramos, CA Lic. 0F53636, National Producer Number 9071660
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