Do you have Vendors, or Allies?
I view running a company to being a football coach attempting to keep ground (profits) already taken and adding to that ground whenever it is possible using your valued employees by putting them in a position to be successful. Your company has been very successful at making a profit for some time, but the attackers keep coming at you using new players attempting to take that ground (profit) back. They come in many guises, be it government regulators, legislators, the IRS, any tax board, and even sometimes vendors or Insurance carriers that might not have your companies best interest at heart.
All successful companies want to surround themselves with business associates that truly care about helping them defend their company’s bottom line. Whether these people provide small or seeming large services to your firm, you should be confident that they are acting in the best interest of your firm. From the standard supplier to your insurance broker, CPA, or any other business associate, they all should have in-depth knowledge about how your company works and thrives. I know that it is impossible, as a business owner, to have intimate knowledge of how all of the various marketplaces and regulations work and what is going on in those marketplaces, and how certain regulations may try and slow down your progress. These allies should be there to give strategic input and provide services in such a way as to increase the growth and protect the assets of the firm, and you need to be confident that these allies have this aim.
Insurance is the main weapon in defending your company and its bottom line. The various policies that you purchase are like your offensive line, and your broker is the offensive line coach. Without a plan to align these policies and make sure that you are well protected from blitzes from the likes of auditors, inept claims management practices, government regulations of every description (ACA, OSHA, FMLA, Cobra, Paid Sick Leave, etc., etc.), and to fill the gaps in coverage as your company grows and situations change. In business, much like football, the field of play is very fluid and non-static. Conditions change quickly and you will not be able to see every attacker all the time, it is advisable to surround yourself with the best suppliers and business associates you can in order to have as many knowledgeable sets of eyes on an ever-growing field of play.
In a nutshell, don’t buy insurance policies from a vendor, buy it from a broker / business associate who is built to defend your profits from outside sources.
Please feel free to contact me about any thoughts on this article.
Guy Teafatiller PWCA