Small Business Saturday Archives

How To Recover From A Business Burnout

How to Deal with Business Burnout

Picture Kate, our neighborhood baker. Kate unlocks her bakery and walks inside–but there’s an awkward feeling in her chest. She lacks motivation, feels fatigued, and to top it all off, she has a massive to-do list. Running a business can be hard, but it’s even harder when you lack energy. Studies have shown that in the US more than 77% of business owners experience a burnout like this.

business burnout for this beautiful bakery filled with customers — *If you are a small business owner or running a company solo, take extra care not to fall into a negative spiral!*

Small business owners are susceptible to accepting too much responsibility. Running a successful business can take its toll on anyone. Even if an entrepreneur sets aside growing their family or having a social life and focuses solely on their company, the magnitude of tasks can be overwhelming.

To prevent a burnout, start by understanding what the signs are:

Lack of motivation
Easily irritated
Fun job tasks are no longer fun
Avoiding your business in conversation

If these sound like you, we offer a simple solution of 3 R’s you can use day to day. These are Relax, Rewind, and Review.

Relax

This one can be the most difficult because we are instinctively active. However, the productive “doing” part of your life can only go on for so long. Remember, like a muscle, the mind must be given time to relax and reset. If you keep yourself in “doing” mode, you can end up overextending yourself; this is how fatigue sets in. We have some tips for relaxing during the workday here.

business owner reading a book by the ocean on a porch — *Relaxing can still be rewarding! Do something productive like reading a book or taking a yoga class to unwind.*

Take some time out to do things that are completely unproductive. Again, this is hard because staying “on the grind” is how brand empires are built. This doesn’t mean taking off for a week-long beach vacation. Some lifestyles simply do not allow for this; it does mean to pay better attention to your sleep habits, make sure you’re getting enough, and let your mind rest.

This can be accomplished by setting aside 30-45 minutes before bedtime for restful activity. Read, drink some herbal tea, or meditate before bed. This will not only ease your sleep schedule but also provide some quality “you” time.

Rewind

Another practice is “rewinding” or re-prioritizing. Avoiding a burnout stems from our ability to connect with our past motivations. Do you remember why you started your business? Do you remember the feelings you had earning your first dollar or reading your first glowing customer review?

Take care not to get too comfortable with your current situation. Sometimes, contentment can pull wool over your eyes from past mistakes. Practice gratitude for what you’ve done, even small things, and stay grounded!

Let’s take another look at Kate. Her bakery experienced some pretty rough months getting started: roach infestations, late deliveries, and slow weeks. However, Kate stuck it out and made it through the rough period. Now though, her bakery was held up at gunpoint. Instead of letting that get her down, Kate rewinds and remembers the hardships starting out and her triumphs. If she can make it through those, she can make it through worse.

Review

After rewind is the review. Taking a step back can give you a better perspective on your situation. leads to fresh ideas, more motivations, and decreases your burnout risk.

two business owners talking about their companies — *Talk to other business owners or your customers and ask for feedback. What can you do to improve your company?*

The review process can be as simple as keeping a business journal, utilized by writing what you’ve learned along the way. The journal can be a notebook, margins in a financial document, or one of many note-taking apps available on our devices. Just make sure it is easily available for you and not anything that can be defaced.

When you review, focus on the positive aspects you’ve accomplished as a small business owner and take into account the lessons that have helped your company grow. For example, Kate, her bakery may not have the growth she anticipated, but she took notes about her first months. Upon review, she noticed that her bakery did well during school months when students came after release and bought snacks. Armed with the new info, she decides to bake a new muffin flavor and advertise student discounts. With the new plan in motion, she makes a new projection with enough profit to buy better insurance coverage.

Be like Kate. Take the time to use your 3 R’s every day. You may not have a bakery, but business burnout is not just for bread. Utilize the apps available or even take the time to keep a journal, your company is worth it.

Do You Need Drone Insurance?

What’s that in the sky? Is it a bird? Is it a plane?

pilot with drone insurance flying a drone — *Drones are fun, but they can get us into trouble. Like any company vehicle, make sure yours is properly insured.*

Nope, it’s a drone, or unmanned aerial vehicle (UAV).

Commercial drone usage is growing because new products and services become accessible once your company purchases one. While they are useful, new technology opens up new possibilities, both positive and negative. Accidents happen even with the safest equipment. Consider purchasing drone insurance coverage when you upgrade your company with its own drone.

Remember when purchasing to make sure you are up to date with your city’s air codes, privacy laws, and vehicle operation licenses as these will be brought up in conversations with your insurance agent. Purchasing a drone may also require hiring a trained drone pilot or remote controllers. With all of these additions, a wise employer will consider drone coverage. The freelance drone pilot should look into these policies as well.

Commercial Uses for Drone and Their Hazards

Problem:

Drones fly at a low altitude, perfect for getting an amazing company picnic selfie. While they are considered unmanned aircraft, drones can trigger nuisance laws as people feel like they are invading their privacy. These claim types are in court at this very moment. The drone’s reputation as an “eye in the sky” is a great selling point but comes as a double-edged sword.

Solution:

Check to see if your Professional Liability insurance will cover privacy claims. Your Business Owner’s Policy will most likely need an addition for your drone.

Problem:

These tiny aircraft are also great for gathering data, but this has them flying into spaces where people work. While the drone pilot may be experienced, accidents can still occur. You don’t want someone to be smacked in the shoulder by a drone and not have coverage.

Solution:

General Liability insurance for the drone or Worker’s Compensation in specific cases

There are different drone models available for any type of business. Which kind would you want to get and what would you use it for?

Problem:

Another drone attribute is its property value. Like any technology, a properly insured piece will be a great asset for your company. Unlike other company property (unless your business owns aircraft), these handy robots should see more exposure to the elements and other hazards, making them more likely to fail due to durability issues or otherwise.

Solution:

Property insurance

Problem:

The last issue concern is due to the drone’s robotic nature. Drone operation does not have to be exclusively human. The aircraft operates via radio waves and some can carry onboard computers. This puts them at risk for cyber attacks as they may carry information on top of their guidance systems. A normal cybercrime may consist of perusing information on your laptop, but a drone cybercrime can have more physical consequences. Picture your drone, hacked and out of control, careening towards a group of people on the sidewalk.

Solution:

Cyber liability insurance

Experts speculate drones for commercial purposes to skyrocket in the near future due to their performance with millions predicted to cover US skies. Amazon is currently working with Prime Air, a drone delivery system that can bring Amazon goods to your doorstep in 30 minutes or less. Hospitals can use them to bring medicine quickly to ailing people, and photographers can capture great footage with ease. Their capabilities are sky-high, but so are the dangers. The insurance industry has taken these into account. So, don’t be caught without drone insurance.

And EZ.Insure will take your business into account. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.

The Beginner’s Guide to a Business Owner’s Policy

Seeking for advice for your new business? EZ.Insure provides not only ease with insurance, but also these simple guides. Reading them should arm you with the knowledge you’ll need to navigate the business world, like what our policies cover. Curious about more than just a Business Owner’s Policy? See our Business Insurance Masterlist and our Beginner’s Guide to Worker’s Compensation. Here, we’ll take a look at what our Business Owner’s Policy (BOP) covers, application times, and costs.

business owner looking into insurance coverage — *Want to start your workday with a smile? Think of the ways you set yourself up for success like coverage.*

What is a Business Owner’s Policy?

So, what defines a BOP? One of the most important types of coverage, or at least the most useful for the business owner, is this policy combining both liability and major property insurance. With the combination, both policyholder and insurance company can benefit. The choice of what you actually want to combine is up to you. Here are your options:

General liability
Property liability
Business Income/Interruption
Cyber insurance

The above coverage types extend protection should any property damage, bodily harm, or income loss happen to your company. No one ever wants these types of things to happen, but it is always better to be prepared just in case.

Without a Business Owner’s Policy, you take the financial brunt of any misfortune happening on your company property, including cyber theft. Take for instance if while at your businesses someone slips on a cracked floor and breaks an ankle, if you do not have a business owners policy, and a lawsuit ensues, you will be responsible for any reparations, plus the loss of when you have to shut down for repairs.

When Can You Apply?

The short answer is now! There is no open enrollment for a Business Owner’s Policy. However, you may ask your agent about special offers, especially if they are time-dependant With EZ.Insure, your agent will make sure to get you the best policy for exactly what you need. The best time to apply is when you feel you need coverage.

business laptop with a new product for a business owner — *New products? If you’re moving up in business, you might consider new coverage.*

If you feel you are ready for a Business Owners Policy the next step is to reach out to an agent to have any questions answered and get a quote for different types of coverage. You can reach an EZ.Insure agent at PHONE NUMBER. Before you call, write down what you think will be right for your business. If you hold most of your information online, we would suggest adding cyber liability insurance, or, if your business is mostly physical property and equipment, property liability would be best. Taking a small amount of time to take note of your assets will make your application process smoother.

What Is Not Covered?

A Business Owner’s Policy does cover quite a bit, but there are exceptions. Worker’s Compensation and Professional Liability are not covered in a BOP but are solid policies to hold. Remember, Worker’s Comp is mandatory in most cases, but Professional Liability is not. While these are not included in the BOP, be sure to do your research if your company has a high risk for malpractice suits. People make mistakes, but certain professions like doctors need extra protection with insurance.

What Are the Costs of a Business Owner’s Policy?

The average cost ranges between $30 to $200 per month. Of course, this will vary based on your needs. Ask your agent to help keep costs down. Also, keep in mind that while this may seem like an extra bill per month, the median cost of just one business lawsuit is $54,000. That’s the price of a good car. Can you afford a surprise purchase like that? To make matters worse, millions of cases pass through U.S. courts annually. Do you like those odds?

two business owners talking about insurance — *Talk to your friends in the business. What advice could they give you about their own coverage?*

The process can be easy enough, especially with an agent on your side. They will have the most up to date information about what level of coverage your company really needs to keep you safe, but not overspending.

EZ.Insure is here to help. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

2 HRA changes Coming in 2020. Will They Affect You?

With the current health reimbursement arrangements, the new HRA changes might be welcomed, especially if you’re saving money this year. It can be hard to keep your employees covered, especially for small businesses with fewer options. Some good news is on the horizon. In June 2019, government officials decided that employers can offer two different health reimbursement arrangements (HRA) to their employees. These new options alleviate the stress previous IRS restrictions had on the coverage type. With the current administration’s push for health insurance change, we should see results after their start in January 2020. Thinking about starting a HRA for your employee’s? Read about the current status first before you decide on the right time.

medical appointment book plus stethoscope and pen — *Keeping an HRA was something of a challenge. Hopefully, in 2020, this will be a better option for people.*

What Is a HRA?

For business owners, a health reimbursement arrangement/account is a benefit for employees. If employees are to pay a medical expense out-of-pocket, then the account assists them during this time. It is advantageous for the employer because of the tax benefits. In addition, the company pays for it. It works by setting up a limit for each account. The employee may incur medical expenses, then be reimbursed from the company account up to this limit. This is not health insurance, but instead an option for the smaller business that cannot afford Group Health.

What Is It Like Now?

Presently, employers pay into these accounts as an added benefit for employees. Then, employees can withdraw for their expenses. However, the HRAs annual limits can be broken, violating stipulations put in by the Affordable Care Act. This has caused frustration between companies and the IRS as HRAs had strict guidelines separating them from other forms of health insurance.

What HRA Changes Will Look Like

The Trump administration’s proposed shifts should alleviate these prior concerns using integration into health insurance plans. This means expansion of what an HRA can do and their definitions are. In 2020, the HRAs used alongside non-group health insurance have two new names:

business owner talking to a doctor about an HRA — *Change is usually a good thing. What can you look forward to next year with your new HRA?*

Excepted-benefits HRAs (EBHRAs) – These are used specifically to reimburse “excepted” benefits. For example, they might help with dental. Look for this is you are wanting more coverage in outlier benefits.

Individual-coverage HRAs (ICHRAs) – These HRAs, like their name says, are combined with an individual’s health insurance.

These changes can be a positive force for small business owners that are looking for solutions to keep their employees covered.

If you are looking to get more coverage for your company, EZ.Insure offers solutions. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.

Business Insurance Costs That’ll Keep You Up at Night

Insurance costs can surprise you, and purchasing policies for your company can run into stormy waters. With a good understanding of the costs and ways to save money, you can sail your company’s ship straight to profitable seas. Insurance costs, or those “life happens” moments, crop up when you least expect them. Proper planning will alleviate the strain these cause. The average company spends about $1300 on policies, but plan prices are increasing steadily for years. Don’t let unknown factors cost you capital.

stack of insurance folders for a business — *The information n insurance costs can really stack up. We’ve got these easy outlines for you to follow.*

When it comes to insurance for your business, certain forms of coverages are mandatory like Worker’s Compensation, but you should be aware of what will raise your costs, and where are the places you can save money.

Cost-Raising Factors

Different things influence your final price. Learn them now:

History of claims – Your company’s past will be brought up at some point from the insurance perspective. If you have past claims, make sure you are up to date on them and still have their information.
Profit Margin – Your final sales numbers will be taken into account. These directly affect how much coverage you need plus your ability to afford it. If you have a high-profit margin, you’ll want to protect your interests.
Physical Property – If you have a physical site with assets, this will directly affect your Business Owner’s Policy. Remember, a larger building will require more coverage.
Physical Location – Different states have different insurance laws, and some have scarier premiums. Your physical location will be a big determining factor across the board.
Employee Number – Whether you’re self-employed or have a staff, this number dictates when and why you need coverages like Group Health insurance.

financial analysis of business — *Technology can help out too. There’s an app pretty much everything out there.*

Of course, take your business’s specific needs into account, but those vary widely based on industry. Your insurance liaison (known as an actuary) will calculate your risks before offering you different options and their price. Now, how can you reduce these costs?

Places to Save Money

Here is the good news. There are many ways for you as a business owner to cut your expenses. Take these three factors into account:

1. Deductibles – When tax season comes about, this is the best time to minimize the payment you are expected to make. Write everything down during the year, including claim payments, so that they count toward a lower final number. Remember, business expenses count towards a tax refund.
2. Bundling – Grouping things like policies together can save time and money. Often, an insurance company will offer a better deal if you’re willing to only purchase your policies with them. Consider your options when doing this, because it’s a lot less stressful to only look in one place for your information.
3. Refreshing your info – New updates happen in the insurance industry all the time, and your business should also be constantly evolving. If you set one price down for yourself, you may lose out on a better option later. If nothing else, calling your provider and updating your company’s information may give them a better perspective on how they can help you in the future. New coverage may arise that they didn’t know they could offer you.

Coverage comes with responsibility. As a business owner, it’s your job to make the best choices to grow. Your employees and customers are counting on you. With these factors in mind, you can look into where to best allocate your assets. However, everyone can use a helping hand, especially when the industry is as complicated as insurance.

tax incentive form and other business insurance paperwork plus a blue mouse, pen, and cup — *Keeping track of everything can be exhausting. Make sure to keep accurate documentation and get help when you need it.*

EZ.Insure is ready to be that helping hand. Your agent will answer any questions you have, compare the plans for you, and even sign you up, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure or calling 888-998-2027. EZ.Insure makes the entire process easy, and quick.

Tax Deductible Insurance: The Facts

Imagine looking over your expenses from the year, and you calculate not only no refund, but you owe a hefty sum. Your small business is doing well, but not well enough that it can take a heavy tax hit or any other easy mistake. What can you do? Did you take tax-deductible insurance into account?

The savvy business owner works to get the most out of their return. Whether you use a tax app or are a pen-and-paper warrior, each person must hunt for every last tax deduction available to them. This helps puts money back in your business, and money in your business is an investment in its success.

adults brainstorming with post-its on a board — *Brainstorm when you can about deductions for your business. A penny saved is one more in your pocket.*

So, how can you get ahead of the curve? For the self-employed, the small business owners, and even larger companies, certain tax information can be murky. Uncovering the mysteries of insurance premiums and how they fit with taxes can help lower your payments come tax season.

Insurance is a Cost of Business

The IRS’s 2018 Publication on Business expenses states, “You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. However, you may have to capitalize certain insurance costs under the uniform capitalization rules.” This means money spent that was necessary to keep the business running necessary business running can be deducted. It also allows for a process called “capitalization” for certain expenditures, which means transforming your insurance premiums from a business “expense” to a business “cost.” The difference between these two is that an expense refers to the usage of an item, whereas a cost is purely money spent.

So, now the IRS has given you the go-ahead. You can take stock of your premiums and capitalize them if needed. When filling out your tax forms, make sure you place the correct amount spent for the year. For example, on a 1040 form, lines 46, 61, and 69 will be used to report your insurance expenditures.

These examples can be used by the self-employed as well. It comes down to locating which coverages you have, how much you spent on them, and if the premiums are deductible. Let’s look at what premiums make the biggest impact on your tax statement.

Only Some Insurance Is Tax-Deductible

You can start crossing off expenses and reducing your tax payment, putting more capital back into your company’s financial reservoir. Here are the premiums that are deductible:

business notes on insurance and other expenses — *Take good notes for these deductions. Tax forms will need accurate information. Celebrate your savings!*

Fire, theft, accidents, storm, or losses similar to these categories
Business interruption
Group Health/medical
Long-term care
Credit insurance coverage against bad debt
Liability
Worker’s Compensation
Malpractice

Other items of note are life insurance, vehicle insurance, unemployment funds, or overhead insurance. Life insurance can be useful here only if it covers you under contract. For your vehicles, they can be deducted (even if one is for personal use) only when used for the business. The payments to the unemployment fund are only counted in this list if they are approved by your state of residence. Also, the overhead insurance comes into play if you have used it for a long period due to a disability.

Non-Deductible Premiums

Payments made for a self-insurance reserve
Loan security
Earnings Loss
Life insurance/annuities not covered above

Another good rule to note is that if you paid for a premium in advance, this is not considered suitable for the current tax year. Remember, if you take out a premium for five years, each year only one-fifth of the payment can be used to offset your expenses. So you can not deduct the entire premium in one year since you are using it over the course of five.

person calculating numbers and stats for their company — *You’d be surprised the intricacies of this process. Don’t worry! Follow our lead, and you’ll be ahead in no time.*

If you are a sole-proprietor or self-employed, there is more good news for you. Your payments for coverages like medical, dental, and long-term care can be included as an expense. However, this is not the case if you “could” have been covered by your spouse for a certain time in the year. If they see you had the option, they will not take the deduction on your taxes.

In most cases, your business’ essential premiums are considered tax-deductible insurance, so they will be useful come next season. Using the list provided, you can cut down on business costs and fill out that revenue line. What could be better than being covered and saving money?

EZ.Insure is help both you and your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.