There’s more to running a successful business than the obvious day-to-day operations. A business is an investment, so you’ll need to protect your assets. If you’re earning a significant amount of cash from your online business, there are three things that you must have in place to ensure your livelihood.

1. A Lawyer

I’ll tell you what my lawyer tells me…. “It’s not IF you’ll get sued; it’s WHEN.” Okay, I know what you’re thinking… “Of course he’s going to say that. He wants your money!” Sure, there’s some truth to that statement. Lawyers are in business to make money, too, but I consider hiring a good lawyer just as important as keeping insurance on my vehicles. Although I don’t dwell on the thought of potentially getting sued one day, it’s always in the back of my mind. One thing is for sure: If you offer products or services, you’re vulnerable to a lawsuit. You need to find a good lawyer now.

I recommend Martindale when looking for a lawyer. I’ve talked to several lawyers from many different states, and they’ve all had good things to say about Martindale. We also keep a trademark and patent attorney on retainer at all times. There’s no better feeling than having a bulldog lawyer on speed dial. Next to owning a loaded gun, it just makes you sleep better at night.

2. Great Insurance

Your insurance carrier is your personal choice, but we have all of our insurance at State Farm. We’ve been with them for 10 years. We carry a lot of insurance, but it’s more for asset protection than anything else. We’ve never filed a claim for anything, and I don’t recommend you do either unless it’s for a significant amount of cash. Personally, I would never file any claims for less than $10,000. It will just hike up the rates so it’s not worth it.

Obviously, you need personal insurance, but I also recommend having business insurance. For instance, did you know that under State Farm’s Liability Umbrella Policy you’re covered for “Advertising Injury” in $1 million increments? If you’re a copywriter or marketer, you’d be crazy not to own this umbrella policy.

Every serious businessperson should have $1 million worth of business insurance, preferably $5 million. (To go from $1 million to $5 million is actually very inexpensive so it’s worth the investment.) Get it today. Also, don’t forget to add an umbrella policy on top of these policies. An umbrella policy is cheap and will give you even more protection. If you purchase the insurance mentioned above, you’ll be ahead of 95% of all the other lazy business owners who’ll never take the time to properly protect themselves. But there’s one more suggestion I’d like to offer: Buy specialty insurance. You’ve got to have it. It’s more important than you might realize.

Let’s put it this way. Say you’re selling an adhesive to assist women with attaching wigs to their heads. A lady comes to your store and buys the adhesive; she applies it to her head and attaches the wig. A week later the adhesive rips the skin off her head. She decides to sue you.

Now, you probably feel pretty good about having $5 million dollars of business coverage and an extra $2 million dollar umbrella policy, right? Guess what? The basic business policy and umbrella policy don’t even cover this scenario. Bottom line—you’re screwed.

Just so you know…I own a company that has to have specialty insurance. So if you sell a product that you even THINK could result in a lawsuit, get specialty insurance. Two companies I recommend are The Markel Corporation and The Nautilus Group. Before you make a decision, call them and get advice regarding your individual needs.

Start taking your business seriously in 2008. Purchase the correct insurance, so you don’t throw away all your hard work over one lawsuit.

3. A Mentor

Stop being cheap. Quit thinking in terms of money “saved.” Spend the money now, and you’ll be rewarded in the long run.

We all love bargains, but being cheap can backfire on us. For instance, how many times have you replaced something like your vacuum? In the last five years alone, we’ve had to buy four new vacuums. It’s crazy!

So last week we spent nearly $900.00 on a brand new vacuum and attachments for our stairs, hardwoods, etc. It’s the Oreck XL 21, and it was the best investment we’ve ever made. I’ll bet you I won’t be buying a vacuum for at least 20 years because we finally invested in a high-quality product, not to mention the 21 year guarantee.

Here’s my point… Stop thinking about money spent, and start thinking about money invested. Pay what you can afford for quality mentorship. If you’re making $1000 per month, then you may want to find a mentor who’s doing six-figures. If you’re already in the six-figure range, find someone whose doing seven-figures. Do your research. Just find someone who’s where you want to be and hire him or her to coach you.

That’s why I paid $30,000 to be in a one-year coaching program. Was it worth it? Absolutely. Starting this year, pay for the best advice you can afford. I know many people who have paid for top quality mentorship, and they haven’t regretted it. I don’t believe you will either.

Look, there’s much more to running a business than meets the eye. Protect yourself from lawsuits, insure yourself from the unexpected, and prepare yourself for success by hiring a coach who has achieved the level of success you want to achieve. Retain a lawyer, purchase a sufficient amount of business insurance, and hire a good mentor to guide you toward the pinnacle of success you deserve.

This entry was posted on Monday, January 7th, 2008 at 11:26 am and is filed under Life Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.