7 Ways to Safeguard Your Business and Your Brand

We know you already know this, but building a business is no easy feat.

In fact, if you’re launching a new brand or business, it’s going to take countless hours, a ton of money and an untold amount of passion just to get your business off the ground.

To start, you’ll need to create a business plan, unique selling propositions and find an edge to help you stand out from the competition. And then there’s the never-ending task of running your business day-to-day and making it grow.

But here’s one thing most business owners don’t think about…

Do you know how to protect your business from lawsuits, cyber threats and financial collapse?

Especially in today’s super competitive business world, it’s more important than ever to have plans in place to identify potential threats and know exactly what you’ll do if or when they arise.

Below we’re sharing 7 pro tips to protect your business in today’s world.

#1 – Laying The Foundation And Legal Essentials

If you’re planning a business, the first step is to determine the right business structure to support your operations.

There are three business structures to choose from: You can establish a sole proprietorship, partnership or a corporation. 

Most businesses can start as sole proprietorships and then change to partnerships or corporations. But you should take a long term view here and if you plan to grow your business, it’s worth incorporating from the start.

Sole proprietorships and partnerships are the easiest to set up but owners take on a big risk and are liable for any financial consequences the business may face in the future. Corporations are more complex entities. But they offer the best tax savings and liability protection. 

Lastly you’ll also need to draft legal documents, contracts and agreements to protect you, your business and the people that interact with it. This may mean non-disclosure agreements, employment contracts, supply deals etc.

Creating these documents the right way with a legal professional may cost more upfront but will save you a lot of time, money and headaches in the future.

#2 – How To Build A Unique Brand

Once you’ve chosen your business structure and registered with the relevant authority, you’ll need to start building your brand.

A brand is more than just your business and the products or services you sell. It’s about logos, branded colours, target audience and the core identity you want people to see when they think of your brand.

Using the unique aspects of your brand helps you build a business that stands out. Which is why we always recommend putting authenticity and your audience above profit. If you focus on how your business connects with customers and clients, the profit will come.

You’ll also want to focus on creating memorable branding which includes slogans, logos, colours, voice etc. 

These may seem small but studies show more than 90% of modern consumers base purchasing decisions on how a business looks. In other words, their buying decisions are driven by what they think and feel when they see your branding.

Here are the 3 foundational elements of branding

• Brand logos – Great logos blend the perfect mixture of icon, colors, fonts, and layout to create visuals that customers can easily recognize. 
• Branded colours – Colours can make people feel all sorts of different ways. (1) Green feels fresh, blue is trustworthy, red is exciting and action-stimulating etc.
• Fonts – You also need to choose fonts that you’ll use consistently throughout your business. 

A style guide is a single document that outlines your target audience, ideal buyer personas, customer pain points, logos, brand colors, fonts, imagery style etc.

You should have one because you can share this document with your employees, partners, collaborators and anyone who works for you so they always output on-brand content, products and services.

#3 – Protecting Intellectual Property

Intellectual property is anything your business creates like blog posts and social media content to new product designs, services or other creations. 

Businesses need to be aware of IP theft and how it can have a serious impact on their operations. And the bad news is that IP theft is on the rise. (2)

The three most important ways to protect your brand’s IP are trademarks, patents and copyrights.

Trademarks 

These protect your brand identity including your logo, business name, slogans and even product labels. You need to apply for a trademark to get protection which may seem a bit complicated. But it’s worth it as it will protect and ensure the longevity of your business.

Copyright 

Copyright protection is used to protect creative outputs like works of art, written content, blog posts, custom-made software or music. Like trademarks you may need to register to be protected by copyright. But doing so is very important especially if you hire freelancers, service providers or other third-party businesses to work with you.

Patents

Lastly, patents are used to protect product innovations, inventions or even factory processes that give your business a competitive edge. Understanding patent protection can be quite complicated and patents don’t last forever. 

#4 – Cybersecurity Threats

Cybercrime is on the rise… unauthorized data access is set to cost American companies an estimated USD $9.36 million per year. (3)

Fraud, identity theft and data breaches are just a few of the many types of cybercrime that can hit your business. 

And with the internet and workplace apps everywhere, it’s never been more important to protect your business from cyber threats.

Anti virus software is the most basic way to protect your business and the devices it uses. But you can also use data encryption, VPNs, firewalls, vulnerability intelligence, and good digital hygiene.

Most times cybercrime exploits human weaknesses particularly when it comes to unknowing employees. So it’s crucial to keep your employees trained on the latest threats. And make sure everyone who works for you takes a proactive approach to cyber threats (try tools like TruthScan).

#5 – Online Reputation

From Facebook and Instagram, to X, TikTok, Snapchat and others, social media platforms can be a great way to grow your business. 

But when implemented, monitored and managed poorly a digital growth strategy can also destroy your business.

That’s why you need to monitor your brand’s digital presence across the internet. You can and should be using social media to connect with your current and prospective customers. But you should also monitor the internet brand mentions on other websites or review sites where people might be talking about you.

You’re not going to keep everyone happy all the time no matter how hard you try. For every satisfied customer there’s probably at least one unhappy customer ready to leave you a scathing review. But you need to engage with all feedback in a positive manner. 

In the end, understanding how people view your brand gives you insight into how you can grow from here.

#6 – Financial Performance

Safeguarding your website, business, and brand assets is a start. But you also need to look at protecting your company’s finances too. 

You can create a great brand and put all sorts of data protection policies in place. But if you’re not practicing good financial hygiene your business is just as likely to go under as if you didn’t do anything at all.

Robust cash flow and positive return on investment equals sustainable business performance. And sustainable business performance means your business is thriving and can grow.

Every business needs to keep good records, understand its tax obligations and become adept at addressing financial issues before they become problems.

But good financial hygiene isn’t just about managing cash flow. Insurance coverage is a whole other aspect of your business financial health that’s easy to overlook.

Worker’s compensation insurance is often required by state regulators. And it doesn’t just protect your workers. It also protects your business from expensive fines, lawsuits and unexpected expenses.

Tools like ContractorNerd are great for comparing business insurance quotes and finding a policy that’s right for you. 

#7 – Crisis Management

PR disasters, employee injuries or fatalities, lawsuits… These are just a few types of crises that businesses might face. They happen and they’re virtually impossible to predict.

However being prepared for unexpected events can make it easier to get through to the other side.

Successful businesses always have crisis management and continuity plans in place. So you need to identify potential risks and create plans for everything that could happen. Then craft potential responses to those emergencies outlining how the business will continue after a major shock.

Remember continuity measures make your business more resilient.

But continuity planning isn’t a one and done process. You should regularly review your crisis management plan and update it, identifying new threats that pop up and how to deal with them.

Building A Long Term Resilient Business

Running a business isn’t just about launching it, finding a few customers and calling it a day.

Protecting your business from financial vulnerabilities requires continuous effort and ongoing attention from day one to day of dissolution.

We’ve outlined some of the key safeguards here today but the safeguards your business needs will depend on the type of business you operate, the industry and the products or services you sell.

Plus those safeguards will change and evolve as your business grows. So stay informed. Stay adaptable. And seek expert advice when needed. It’s worth it!

References

1.      “Color Psychology: How To Use it in Marketing and Branding,” Source: https://blog.hubspot.com/the-hustle/psychology-of-color

2.      “Just the Facts: Intellectual Property Cases—Patent, Copyright, and Trademark,” Source: https://www.uscourts.gov/news/2020/02/13/just-facts-intellectual-property-cases-patent-copyright-and-trademark

3.      “Average cost of data breach in the United States from 2006 to 2024,” Source: https://www.statista.com/statistics/273575/us-average-cost-incurred-by-a-data-breach/