Have you recently decided to start your own home based business? If so then you are well on your way to gaining true financial independence. In order to protect your new business as well as your financial independence then you need to make sure your business is ready. To make sure your business is ready consider the following checklist.First, consider whether you have the necessary working capital to support your business at the early stages? Did you start your home based business while working full-time to make sure you have the income to support your business needs? You should never give up your day job until you are positive you have enough money coming in from your home based business to support you.Second, make sure you have all the necessary licensing and registrations in place for your business. Is your home based business in line with all local zoning regulations? This is important for both legal and insurance reasons, especially if clients are going to be visiting your home office.Third, make sure you have adequate insurance coverage. If clients are going to be visiting your home, you will need to purchase additional insurance. Homeowner’s insurance won’t be enough to cover business visitors unless you tell your insurance company that you are operating a home based business and the company decides to endorse your policy in order to include this risk.However, it is a good idea to take out a separate policy in order to cover business visitors. This is why it is also important to comply with local zoning regulations. Sometimes an insurance company will refuse to cover individuals who aren’t conducting businesses legally. This is why it is important to have all the proper registrations and licenses for your business.You should also consider getting public risk insurance. No matter what type of home based business you are getting into, you should have this type of insurance if you are dealing with other people. This insurance will help cover you against claims of negligence.Lastly, you may want to consider getting income protection insurance. If you are transitioning from paid employment to self-employment, then you won’t have the benefits associated with your paid job such as disability or income protection. Therefore, you can get this coverage by paying for income insurance.Fourth, after leaving the paid workforce you will also be leaving behind your benefits. You will no longer have medical, dental and optical benefits. Therefore, you will have to consider adequate insurance to cover these expenses.
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