Insuring Your Small Business Friday, May 2, 2008

The number of small businesses starting up in the UK increases every year. The people starting a new business do it for a variety of reasons, to follow a dream; the need to stay at home combined with the need to work, redundancy, the list is endless. The growth of broadband Internet has fuelled this growth in many sectors. Some of these businesses will need financial backing from a venture capitalist and some will not; but all will need a business plan.You might never need to present this business plan to anybody, even if you don’t it is still wise to have one.

This will act as an aide memoir when you feel everything is collapsing about you; or when everything is moving so fast it can get your feet back on the ground.However enthusiastic or skilled you are in the business you plan to start you are probably not skilled in business practices so your business plan, when presented to a business expert, will highlight the missing knowledge. Without it they do not know what you do not know about business. Anybody you ask to help you finance or support your business, whether it is a bank, stock suppliers or a venture capitalist, will want to see a business plan before even considering investing in your idea.

But what do you put in a business plan and how is it structured. Well you have to show that you have researched the market thoroughly and understand the competition you may face. It has to be well presented and show a severe attention to detail. The plan should reflect a sense of professionalism, with no spelling mistakes, realistic assumptions, and credible projections of cash flow. If you find all this daunting there are web sites, companies and associations out there to help you.One thing you must remember, the better you plan your venture the better you are capable of solving problems that may occur.

The failure rate of small businesses increases year by year, but this is because inadequate time was put in beforehand finalising a business and financial plan for the venture.You may or may not need financial backing for your new venture. When sitting down and planning out your dream you should work out the finance you need for stock, business supplies, advertising, equipment and wages for the first few months while you build up custom.Do not forget insurance. Business insurance is for the big boys you might think, not for you sitting at home behind a computer running an Internet marketing concern, cleaning windows or making wedding dresses. The law sees you in the same light as the IBM’s and Fords of this world.

Your personal and home insurance will be invalid in most cases.Some companies offer a special small business insurance package or will tailor make a business insurance package to suit your requirements. Whatever it is you need it will not cost a fortune, it will enhance your business standing and confidence and could save you a fortune. These days it only takes one litigation claim against you to force you out of business and end your dream.

The mainstays behind any small business insurance package are public liability insurance and product liability insurance. It is often a requirement that before you can work on or visit third party premises that you have public liability insurance. This provides cover against death or bodily injury to the public and loss or damage to property not owned by you or in your custody or control. Product liability will cover you against the supply of goods to someone else which through your negligence causes injury or damage. It includes solicitors’ fees, all costs and litigation expenses, damages and claimants costs for which you would be legally liable.One thing to be reassured of when starting up a new business, nobody wants you to fail.

There are companies and associations out there who want to help you. Some are free such as the local chamber of commerce who can provide you with a wealth of information including employment laws, local companies who might need your services and useful addresses. There is the Federation of Small Businesses which has local groups who meet regularly to discuss topics that are affecting them or to see presentations from service industries. On top of these there are local business support agencies, banks, venture capitalists and many more. They are all in business to help their customers as much as you are in business to help yours.

Exposing the Car Insurance Quote Mystery Wednesday, April 30, 2008

Congratulations, you have just purchased the car of your dreams; you worked a great deal, now it is time to insure it. Car insurance is mandatory in all states, and must be maintained throughout ownership. Insurance quotes can vary from company to company, and there are a few factors that you can control, and other factors you cannot. A full understanding of how insurance quotes are arrived at, will give you the best rate, and maximum coverage. Factors that cannot be controlled include the age of the driver. Common sense tells us that a new driver would be more of a risk to an insurance company, than an established driver. Therefore a driver in their early 20's would pay a higher premium than a driver in their 40's. Further, elderly drivers have poor reaction time, and similarly would pay more of a premium.

The ideal driving age would be between 35 to 55 years; anyone younger, or older would pay more. Gender is another uncontrolled factor that insurance quotes are based on. Statistically, insurance companies see females as safer drivers than males. As a result, female drivers pay less than their male counterparts. There are factors, which we can control, namely the amount of traffic tickets and accidents. A ticket is a violation of law that could potentially result in an accident. Insurance companies frown on this, and will penalize the driver with higher rates. Similarly, accidents could indicate a pattern of behavior; as such the driver is penalized with higher rates. Where you live is another controlling factor that effects insurance quotes. Living in a rural area, puts the driver at much less risk of accident or theft as compared to living in a city. As a result, city drivers will pay a larger premium than rural drivers with very few exceptions. Want to drive a Porsche 911 Carrera? It will cost you.

The more your car is worth, the higher your insurance quote will be. The logic should be obvious. Car insurance companies are now looking at your credit worthiness. Do you have excessive, outstanding credit, or no credit at all? If so, you are a risk in the eyes of the insurance companies, and will get socked with higher insurance quotes. Keeping your credit in check will show the insurance companies you are responsible, both financially, and on the road. As a result, you will pay lower premiums. Your occupation can put you at a higher risk. Jobs that require many hours of driving, or driving in hazardous conditions, or places will put your quote at a higher rate. Less driving, and exposure to high-risk opportunities, will result in lower premiums. Additionally you want to keep your annual mileage down to a minimum.

The more miles you drive, the greater the risk of accident. Vehicle theft is a risk factor that can easily be minimized. Most companies will give you a discount for having better security for your vehicle. An alarm, or another approved anti-theft device will usually result in some discount. Some companies may insist on having such devices installed on more expensive and desirable cars before they even consider offering you a price. Some companies look favorably on drivers who have taken a defensive driver's course. They see this as a commitment to safer driving, thereby lowering the risk of accident, resulting in lower premiums. Keep in mind these are just general guidelines, and the difference in price between various companies can be significant. What one company may consider a high-risk factor another company may not view as so important. The bottom line, keep your credit in check, be careful on the road and choose a car that fits your budgets.