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MANAGING RISK
HELP FROM QUALIFIED ADVISORS

Managing risk is easy with help from qualified advisors. You have a wonderful plan for your tea business, so you want to protect it against risks. It is essential that you find qualified advisors to help you with managing risk and the legal aspects of protecting your business. Interview you potential qualified advisors to find a fit in personality, objectives, and business philosophy. The hourly rate your qualified advisor charges is another consideration. Also, trust your gut feeling; you have not become successful in you business by ignoring your intuition!


Accountant
This is probably the most important advisor you can have. Apart from organizing your books, an accountant can help you with your tea business management, tax reporting, and strategic planning. A business that starts without the help of an accountant may later find that the accounting system is not set up properly, that tax reporting has not been done accurately or on time, or that there’s no room for expansion within the system as it stands. Performing daily bookkeeping chores in-house or through a bookkeeping service will save money, and your accountant can then be used for more complex planning, and organizational and tax issues.

Insurance Agent
Insurance is a complicated issue. Lawsuits abound in our society and virtually all businesses are at risk. If you have a tea room or tea bar it is important to have liability insurance if someone sues you for food poisoning. Remember, you may be legally liable for damages even in cases where you exercised reasonable care. You may be liable for acts of employees or persons under contract with you and for any property of others placed in your care. All of these risks are insurable with the right policy. “Better safe than sorry” is an old adage that applies to insurance coverage for your business.

You can buy insurance through an agent or through a broker. Agents work for one or more insurance companies and receive a commission for each policy they sell. They tend to offer standardized coverage. Brokers are hired by their customers for a fee; they generally do business with large companies that want customized insurance packages. There are two types of insurance agents: direct writers and independent agents. Direct writers represent one insurance company, so they tend to be quite familiar with the policies they offer. Independent agents represent multiply insurance companies, which often means they offer more competitive prices.

How do you choose an agent? Personal referrals are the best means for choosing an agent. Ask your banker, accountant, or attorney or other business friend for a recommendation. Getting three bids and checking references is recommended. A good agent will ask you lots of questions about your tea business before recommending the type of insurance that will best fit your needs. Cost is also important. Most businesses should have fire, automobile, liability, and workers’ compensation insurance. Of course, the size and type of tea business you have will determine what your insurance needs are.

Banker
There will probably be a time when you need outside capital for your tea business. You may need new equipment, a new computer system, cash register, cash flow management or want to expand your business. Because a banker needs to know about your tea business it is important to establish a relationship with one when you start your business. This way when you need help, he or she will know about your tea business already.

Attorney
Business law is definitely a complex world. You will want to find a lawyer or legal firm specializing in business issues. The most practical way of finding an attorney is a referral from your accountant or your banker.

The cost of finding these advisors can seem overwhelming at first, but should be part of your start-up costs for your tea business. They will save you money in the long run. Of course, if your tea business is small you may not need each of these as you accountant may be able to give you the advice you need to get started. As I said before, “Better safe, than sorry.”

Licenses, Taxes, Financial

Governmental Regulations

Legal Structures of Businesses

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