As an entrepreneur, you’ve got a lot on your plate. Building your business plan. Securing funding. Setting sales goals. Finding new customers. Keeping track of your finances… The list goes on and on.

With so much to get done, chances are buying a business insurance policy isn’t high on your list. To make matters worse, it’s a common misconception that insuring your business isn’t really necessary when you’re just starting out.

But the truth is, every business needs insurance – even startups. It’s a simple step you can take to protect the company you’re working so hard to build. And it can cost less than you may think.

As an entrepreneur, you’ve got a lot on your plate. Building your business plan. Securing funding. Setting sales goals. Finding new customers. Keeping track of your finances… The list goes on and on.

With so much to get done, chances are buying a business insurance policy isn’t high on your list. To make matters worse, it’s a common misconception that insuring your business isn’t really necessary when you’re just starting out.

But the truth is, every business needs insurance – even startups. It’s a simple step you can take to protect the company you’re working so hard to build. And it can cost less than you may think.

To help you understand why business insurance is so important, here are answers to some of the most common questions about insuring a new business or startup.

Why Do I Need Business Insurance?

Like any type of insurance policy, business insurance is designed to help protect you against risk. And there’s no shortage of risks that businesses face – especially new businesses and startups. If you open a physical office or location, someone could file a lawsuit after getting injured on your property. If a client is unhappy with your work, they could sue you for negligence. Your product inventory could get damaged or stolen. Without the proper insurance coverage, your business would be on the hook for all of these unexpected expenses. And if you’re just starting out, that added cost could put you out of business entirely.

When Should I Buy Insurance for My New Business?

When your business is still in the early planning phases, there’s probably not much that needs protecting. But as your startup dreams turn into reality and you make your first sale, it’s wise to look into a business insurance policy. Business insurance can help protect against everything from property damage to liability claims from customers and employees. So, buying a policy early in the life of your business will offer the best protection from the start. Speaking of employees, as soon as you hire your first employee you’ll be legally required to carry workers’ compensation insurance. This insurance helps cover medical care and lost wages for an employee who is hurt at work.

Do I Need Business Insurance for a Home-Based Business?

If your business is starting out in your basement, home office or garage, you may think that business insurance is unnecessary. But just because you’re working out of your home doesn’t mean you’ll be covered by your homeowners insurance. Most homeowners and renters policies only go so far and aren’t designed to cover things like destroyed business inventory or customer injuries. For example, if you’re a photographer and your high-end camera equipment is damaged by a water leak, your homeowners coverage might be limited to $500 or $1,000 for equipment used exclusively for a business. And if a client trips down the stairs to your basement office, your homeowners policy wouldn’t cover a premises liability claim because they are a business client. Business insurance, owever, would protect you in both these instances – and more.

What Type of Business Insurance do I Need?

The type of insurance you need for your startup will largely depend on the specific business or industry you’re in. That’s why Erie Insurance offers business insurance packages that are tailored to your specific industry. But generally, you may want to consider:

• Commercial auto insurance: Whether you rely on a single car or a large fleet of vehicles, commercial auto insurance is something many businesses need. This coverage can protect your business against claims for bodily injury and property damage caused by a covered accident arising out of the use of a company vehicle.
• Commercial property insurance: Commercial property insurance helps protect the building or physical location you work in, whether it’s owned with property coverage or leased with liability coverage for damage that’s your fault. It could also replace damaged or stolen assets like equipment and product inventory. Some policies, like business interruption coverage, can even help recover any income you lost while your doors were closed due to a covered loss.
• General liability insurance: While specific liabilities may vary from business to business, a general liability policy protects you against covered claims alleging bodily injury or property damage.
• Employment Practices Liability (EPL): Legal issues stemming from alleged discrimination, wrongful termination and harassment are growing concerns for today’s small business owner. With EPL coverage from ERIE, you can choose the protection that best fits your needs to help cover the costs of a lawsuit – even if the charges aren’t true.
• Cyber Suite: Protection for cyber incidents isn’t just for large businesses. With Cyber Suite¹ from ERIE, you’ll be prepared to respond to a wide range of cyber incidents including breaches of personally identifying or sensitive information and threats that could jeopardize the safety of that information.
• Workers’ compensation insurance: Often referred to as workers’ comp, this policy is legally required in most states if you hire employees. It helps cover medical care and lost wages for an employee who is hurt at work and cannot return (not available in Ohio).
• Business umbrella policy: No matter how careful you or your employees are, mistakes and accidents, unfortunately, do happen. That’s why many business owners make the smart decision to protect themselves with extra business liability insurance. ERIE’s business umbrella is an additional layer of coverage that gives you extra protection and peace of mind above and beyond your commercial general liability, professional liability, business auto liability and employers liability insurance. (Check with your local ERIE agent about any sublimits that might apply.)

How do I Determine How Much Insurance Coverage I Need?

After figuring out what type of insurance you need, the next step is to decide how much coverage is enough to protect your growing business. Generally speaking, your coverage limits should match the level of risk your business will be exposed to. But that’s a difficult thing to figure out on your own. Fortunately, you can get customized advice from an ERIE agent in your neighborhood. As a member of your community, your local ERIE agent is uniquely positioned to understand the insurance needs of your business. They also know the risks associated with where you live, such as the local costs of construction and common claims.

How Can I Save Money on My Insurance Coverage?

Nearly every startup has one thing in common: money is tight. As a small business owner themselves, your local independent ERIE agent can help you find the right balance between price and protection. This process helps ensure that your policy provides all the coverage you need at a cost you can afford. Your ERIE agent can even help you take action to reduce risks in the first place with access to a risk control consultant. They’re a free resource to help you evaluate the potential risks your business faces and then recommend measures you can take to help reduce those risks – and potentially lower your premiums in the process.

October is Cyber Security Awareness Month, so now is the perfect time to examine and refine your business’s cyber security precautions, things like password policies and employee training. It’s also the perfect time to make sure you have a cyber insurance policy.

If you operate a small or midsize business (SMB), this domain of criminal enterprise increasingly has you in its crosshairs.

Why Are SMBs Targeted?

If you’re a small business owner, it may seem odd to imagine criminals targeting you rather than bigger names with bigger revenues. But, with small businesses constituting 44% of American gross domestic product, according to the Small Business Administration, there are logical reasons for the bad guys to pick on the little guys including:

• Low security budget. Smaller companies tend to have smaller security budgets. Often without a dedicated security team or lacking the most up-to-date countermeasures, they can be seen as easier targets than bigger companies with beefier budgets.
• Weak security protocols. Smaller companies are also more likely to have less sophisticated security policies and protocols than their larger counterparts, leaving sensitive information unaddressed and unprotected.
• Gateway to bigger prey. By committing supply chain attacks — exploiting vulnerabilities in small companies that service numerous larger clients — attackers can often get more bang for their cyber-crime buck by gaining illicit access to several victims at once.

Once it’s understood that a smaller market footprint offers no real protection from cyber crime, it’s important to know the ways your business can be targeted. And, given the trends highlighted in the FBI’s March 10, 2023 release of its annual Internet Crime Report, there’s at least one threat everyone should pay attention to: Social Engineering Fraud.

What Is Social Engineering Fraud?

While traditional “hacking” relies on vulnerabilities in software or hardware to gain unauthorized access to networks and computer systems, social engineering fraud relies on people and emotions.

According to the Cybersecurity and Infrastructure Security Agency, socially engineered attacks are those that use “human interaction (social skills) to obtain or compromise information about an organization or its computer systems.”

Such exchanges can take the form of convincing text messages, email and voice interaction capable of duping even cautious employees into disclosing sensitive information — especially when combined with powerful emotions like fear, love and urgency.

Social Engineering: 10 Types of Fraud

As criminals attempt to leverage technology, trust and emotion against you and your team, familiarity with their techniques can help you avoid becoming a victim. Popular techniques for this ever-evolving type of fraud include:

• Baiting. Baiting attacks tempt victims into reusing passwords with offers of quick or easy access to goods and materials or by luring them into inserting USB flash drives to install malware.
• Business Email Compromise (BEC). Among the most costly and difficult-to-detect social engineering attacks, BEC uses executive impersonation to direct subordinates to perform fraudulent funds transfers.
• Diversion Theft. An old tactic adapted for contemporary use, victims of diversion theft attacks are tricked into sending or obtaining sensitive information to/from a spoofed location or person.
• Honeytrap. Often used with romantic overtones, the honeytrap uses a counterfeit online profile to deceive a victim into disclosing information to what she or he believes is a real person.
• Phishing. These attacks use email or a counterfeit website from a seemingly trustworthy source about topics of broad interest to solicit personal information from a large pool of people.
• Pretexting. Impersonating an authoritative or trustworthy source, a pretexting attack will ask for personal information that can be used either to directly gain unauthorized access or further impersonate its initial victim in a subsequent attack on the intended target.
• Quid Pro Quo. Usually posed as a bogus offer for a valuable service (like improved network speed or updated software), a quid pro quo attacker asks for login credentials as a precondition.
• Smishing. Easy and cheap to set up and perform, smishing uses malicious links sent as text messages in order to lure victims to fraudulent websites for malware installation.
• Tailgating. Sometimes referred to as “piggybacking,” the tailgate attack is an in-person exploit that solicits seemingly trivial courtesies (e.g. “I forgot my laptop. Can I borrow yours?”) as a means of gaining access to otherwise restricted areas and resources.
• Whaling. These attacks are specialized phishing attacks that target a powerful stakeholder such as a CEO using highly developed personal information rather than general interests.

A common theme in all of these attacks is the use of emotion — for example, the desire to help another person or the fear of being responsible for a costly mistake — as a means of encouraging the victim to grant the attacker access.

What Can I Do About Social Engineering Fraud?

As always, encourage employees to use best practices like creating a strong password and using a VPN when possible to help protect your business data. And, while it’s always a good idea to make sure your security policies and systems are current, there are some important non-technical steps you can take to promote cyber security:

• Understand the threat environment. Dedicate time throughout the year to stay current with authorities like the FBI or the Cybersecurity & Infrastructure Security Agency Knowing about an attack before it’s used on you can make a big difference.
• Communicate with your team. Make sure your team knows about these threats and how to call them out. A quarterly update of the latest scams and threats will keep everyone informed. Encourage your team to question and verify rather than act on fear or urgency. Most cyber crimes are easily preventable with rationality and diligence.
• Get cyber insurance. Review and update your commercial insurance policy to ensure proper coverage. Business owners are discovering that they are either uninsured or underinsured for cyber crime since many insurance companies’ cyber insurance policies don’t cover social engineering claims.However, ERIE offers a cyber insurance coverage that may cover claims arising out of social engineering. As Commercial Lines Product Development Consultant Kristen Stevanus explains, “ERIE’s Cyber Suite coverage addresses a variety of cyber-crime consequences — including things like data breach, misdirected payments and malware — where a policyholder’s employee unwittingly grants access to the attacker.” Cyber Suite coverage with ERIE includes access to additional resources to help business owners protect themselves against cyber threats. With Cyber Suite, customers gets Cyber Safety, a risk management service that provides employee training, cyber security policy templates, website scanning and more.  

  This kind of cyber crime protection addresses more than just the direct effects of the attack itself. Covered claims also include protection for downstream consequences like forensics, compliance and recovery.

Stay Current, Stay Safe

Cyber security is an evolving concern, and keeping up to date with the latest threats is one way to avoid them. But even when you take precautions, cyber fraud can still occur. That’s why it’s so important to make sure you protect your business by having the right insurance protection.

With Cyber Suite from ERIE¹, you’re covered for losses arising from a host of cybercrimes, including data breaches, computer fraud and attacks, cyber extortion, misdirected payment fraud and telecommunications fraud. Cyber Suite also includes third-party liability coverages for privacy incident liability, network security liability and electronic media liability. And as an added bonus, you’ll have access to a team of cyber professionals experienced in handling these types of claims.

A local agent can help you understand the benefits of this important coverage, which is just one reason why it’s beneficial to have a knowledgeable Erie Insurance agent.

¹Cyber Suite is only available to Customers with an ErieSecure Business® policy (not available in NY). Cyber Suite coverage and associated services reinsured under an arrangement with the Hartford Steam Boiler (Home Office: Hartford, Connecticut). © 2021 The Hartford Steam Boiler Inspection and Insurance Company (“HSB”). All rights reserved. This document is intended for informational purposes only and does not modify or invalidate any of the terms or conditions of the policy and endorsements. For specific terms and conditions, please refer to the coverage form.

The insurance products and rates, if applicable, described in this blog are in effect as of September 2023 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long-term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Reducing the risk of a fire at your business is one of the most important things you can do to help protect your customers, employees and property. The U.S. Fire Administration reports that more than 116,500 nonresidential building fires occurred in 2021. Those fires caused 1,025 injuries and almost $3.7 billion in damages.

The Unseen Costs

For business owners, these damages can be more costly than physical repairs. It could mean weeks, or even months, of impaired operations while your property is restored. Factors such as loss of productivity, litigation and damage to brand reputation can have far-reaching effects that are difficult to anticipate. When a fire results in injuries, the human cost is incalculable.

So, what steps can you take to help ensure a crisis like this doesn’t happen at your business? Give these four tips a try:

1. Check potential fire hazards.

According to the American Red Cross, there are a number of common hazards in any home or business that are likely to be the source of a fire. Conduct a survey of your business and examine these potential problem areas:

• Make sure machines and equipment are clean and well-maintained.
• Keep any combustible objects away from space heaters or furnaces.
• Properly store flammables in cabinets and away from ignition sources.
• Check appliance cords and replace any broken connectors or cracked insulation.
• Use only one extension cord for each power outlet.
• Allow room behind any appliances to allow air to circulate and prevent overheating.

2. Ensure you have the proper safety equipment.

Every business should have functioning fire extinguishers, but it’s also wise to consider smoke detectors, sprinklers or a fire alarm. Remember, the life expectancy of a smoke detector is only 8-10 years.

Look into a specialized fire suppression system if your business has large operations or machinery that is capable of overheating, commercial cooking equipment or especially flammable materials onsite.

3. Make sure your equipment is up to date.

Did you know that fire extinguishers have a shelf life of 5-15 years – even if there is no expiration date listed? Over time, these devices can lose their pressure, so make sure your extinguisher is working properly by checking the pressure gauge every month. If the needle is in the yellow or red section, it may need to be repaired or replaced. (Read more tips in our ultimate guide to fire extinguishers.)

Be sure to replace your extinguisher if you notice any of these signs:

• The hose or nozzle is cracked, ripped or jammed.
• The locking pin is unsealed or missing.
• The handle is missing or unsteady.
• The inspection sticker or service record is missing.

4. Communicate with your staff.

To ensure the safety of your employees, regularly and reliably communicate your fire safety procedures. This is especially important when a portion of your staff is not regularly on-premises, such as in a hybrid work model where some employees work from home.

• Provide a clear and easily accessible emergency protocol — one that not only accommodates employees with disabilities, but those who may not be in the office on a consistent basis.
• Keep both on-premises and remote employees up to date with the protocol by regularly using electronic and hard-copy questionnaires, quizzes and sign-off acknowledgments.
• Describe evacuation routes with maps that can be referenced physically and digitally embedded in electronic communications.
• Explain how emergency notifications will be delivered, whether it’s through voice communication or a sound like a bell, whistle or horn.
• Make sure your evacuation plans accommodate employees with disabilities, such as someone with hearing loss or who uses a wheelchair.
• Provide training, such as fire drills, to practice your emergency plan and make use of videos wherever possible to keep remote employees up to date for those times they are in the office.
• Remind your employees not to store anything on stairways or along your fire escape routes.

For business owners, hiring and retaining good employees is always a challenge. But in today’s highly competitive job market, the task of keeping your workforce engaged and productive is harder than ever.

After a disruptive few years following the COVID-19 pandemic, more and more working Americans find themselves dissatisfied with their current job. In fact, a recent poll from Monster.com found that an astounding 96% of workers are looking for a new position in 2023! Meanwhile, the company also reports that 9 out of 10 employers say they’re struggling to fill positions.

With these trends in mind, your business needs a solid recruitment and retention strategy. And many experts agree that improving employee morale and engagement is the best place to start.

Why? Because not only does employee engagement improve long-term retention, but disengaged employees are estimated to cost the U.S. up to $600 billion in lost productivity each year.

To help your business attract and retain the best people, here are 9 tips to boost employee morale.

1. Offer Competitive Benefits

   Every employee wants to feel like their contribution is valued. So whether you manage a staff of hundreds or are hiring your first employee, offering a competitive compensation and benefits package is one of the most important ways to attract top-performing talent to your organization.

   At the most basic level, this means offering a base pay that reflects the current realities of your local job market. According to Monster, 46% of workers expect a higher salary this year due to inflation and the higher cost of living. If your company’s wages aren’t keeping up with the market, don’t be surprised if employees start job hunting.

   Beyond a competitive annual salary, employees also place a high value on benefits like health insurance, paid time off and retirement contributions. For small businesses, the cost of these benefits can add up quickly. But you may recoup some of that expense in the form of reduced employee turnover.

   After taking a look at your current pay and benefits, don’t forget to publish the details in an employee handbook. This written documentation can help your employees understand the ins and outs of your benefits package – along with what’s expected of them as members of your team.

2. Promote Work-Life Balance

   Another shift that employers are noticing following the COVID-19 pandemic is a higher value placed on work-life balance by employees. To help boost employee morale, your business may want to consider allowing employees to work from home, if possible. A growing number of small businesses are also adopting a hybrid work model – one where employees split their time between working from home and working onsite at a company-owned location.

   If remote work options aren’t realistic for your business, there are still things you can do to promote a better work-life balance for your staff. Offering more flexible schedules or comp time is a great way to acknowledge that employees have a life outside of work, allowing them to make time for friends, family commitments and personal interests. And drawing clear lines between work and home life can be done by discouraging off-hours calls and emails.

3. Be Transparent

   As a business owner, establishing clear lines of communication with your employees is another great way to improve morale and engagement. According to a Slack study on the future of work, 80% of workers want to know more about how decisions are made in their organization, and 87% want their company to be transparent.

   Transparency builds trust between employees and an employer. So when you create an environment where your team members feel free to ask questions – and can receive honest answers – you’ll be more likely to earn their loyalty and commitment.

4. Ask For Feedback

   Speaking of transparency, never underestimate the importance of regularly asking your employees for feedback. All too often, business owners only seek out feedback during exit interviews – after an employee has already decided to leave your company. Using this approach, you’re missing out on tons of valuable insights that can help you improve morale and engagement.

   Create a company culture that’s focused on continuous improvement by routinely creating opportunities for employee feedback. To accomplish this, consider using a combination of internal surveys, employee review sessions and company-wide meetings. Ask your staff about why they choose to stay at your company and what they would change to make life better. Then, use the insights you gain to create a better work environment.

5. Support Wellness Initiatives

   In a recent report from Workhuman and Gallup, employee wellness was found to play a role in reduced levels of burnout, better social wellbeing, higher levels of belonging and an increased feeling of thriving. For that reason, many employers are starting to pay more attention to employee wellness – including the physical, emotional, mental, financial and social wellbeing of their team.

   When you think about it, it makes sense that you can improve morale and productivity by helping your employees make their lives better outside of work. So get creative in thinking of new ways to promote wellness. That could mean offering perks like a free gym membership to incentivize physical activity or enrolling in an employee assistance program to offer mental and emotional health support.

6. Show Your Appreciation

   Sometimes, even small gestures can make a big impact on employee morale. And there are plenty of ways to show your appreciation for a job well done.

   Take time to celebrate special achievements like meeting sales goals, landing a new client or earning a great customer review. Recognition can come in many forms – whether it’s a small gift, a handwritten note or an email to your staff.

   And don’t ignore those business “Hallmark holidays” like Administrative Professionals Day, Employee Appreciation Day or Fun at Work Day. While they’re not always widely celebrated, they present a great opportunity to show your gratitude, improve morale and foster creativity. Injecting fun into your workplace can have positive effects by bringing everyone together. Consider themed food days, games, crafts, awards, etc.

7. Prioritize Team Building

   When you work a full-time job, it can feel like you spend as much time with your coworkers as you do with your own family. So investing in building good relationships at work is an easy way to help improve morale.

   As an employer, consider hosting regular team-building events to bring your employees closer together. This could be as simple as scheduling an after-work happy hour, or planning a fun activity for your staff to do together like an “escape room” event, putt-putt or visiting a local museum. Be creative and ask your employees for ideas, too.

   And if your business employs remote workers, consider bringing them in for in-person meetings once or twice a year. You’ll find face-to-face interactions will help build stronger bonds than a video conference.

8. Offer Performance-Based Incentives

   If you’re looking to improve morale and boost productivity at the same time, consider offering performance-based incentives to your employees. You can do this by tying raises to employee performance reviews, or by creating a profit-sharing structure that offers bonuses based on your company’s financial performance.

   These types of merit-based incentives can keep morale strong – while incentivizing your highest-performing employees to stay with your business for the long haul.

9. Promote From Within

   The next time you have an open management position, take a good hard look at your internal candidates before opting for an outside hire. The truth is, everyone likes to see hard work get recognized and rewarded. Hiring from within sends a message to your employees – letting them know that it’s possible to build a career at your company.

   If you anticipate a skills gap, look for ways to bridge it by offering training or professional development opportunities. Investing in the education and growth of your employees will not only boost morale. It can also result in reduced onboarding costs and increased retention rates.

You started your business with a dream. A vision for the future. And there’s no satisfaction like watching that dream come to fruition.

If business is booming and all your hard work is finally paying off, it’s natural to think about expansion. But how do you know when the timing is right to open a new location?

The truth is, there can be danger in growing your business too fast. According to the U.S. Bureau of Labor Statistics, about 20% of small businesses fail within the first year. And after five years, about half have closed up shop.

But time isn’t the only factor. Even if you’ve been operating for decades, scaling your business is still a difficult decision. Because a wrong move could jeopardize everything you’ve worked to build.

Are you ready to grow? Here are 9 things you should consider before opening your new location.

How to Expand Your Business to a New Location

Know your objective

Before you get caught up in the excitement of looking for real estate and designing your new space, make sure you have a clear understanding of why you’re deciding to expand in the first place. This may sound like common sense. But you’d be surprised how easy it is to lose focus when adding a new location.

Are you wanting to move into a new market? Or is there so much demand at your current location that you’re unable to capture it all? Your answer to these questions will help you plan your next steps with clarity, enabling you to make decisions without losing sight of the end goal.

Consider the alternatives

These first few tips may make it sound like we’re trying to talk you out of opening another location. We assure you, that’s not the case. However, you should be confident in your commitment to expand before taking on all those extra financial commitments and overhead expenses.

So after you’ve set your objectives, ask yourself if there are any other ways you could meet these growth goals. For example:

• Online sales: If you have a physical storefront, maybe you could beef up your online sales by investing in a new website and social media marketing.
• New services: Are you running a successful restaurant? Perhaps additional delivery and takeout services could be the key to increasing revenue without the added risk of opening a new location.

This exercise can help you squeeze the most revenue out of your existing business first. And there’s an added bonus: If you can’t think of less costly alternatives to physical expansion, you can move forward with confidence.

Choose your location wisely

We’ve all heard the real estate mantra: “location, location, location.” And for good reason. Where you decide to open could be the difference between successful growth and a failed investment. Start by doing your research on the general area first. Ask yourself:

• Is the proposed new location close enough to build on your initial success and brand recognition?
• Is it far enough away that you can tap into a new market of potential customers?
• Are there nearby competitors that could threaten your profitability?

This type of market research can help you understand the potential demand before you make any commitments. Then, start looking for a physical space that meets your needs. Be sure to consider:

• Rental expenses
• Accessibility and traffic (foot and vehicle)
• Potential renovation costs

Repeat what works

Opening a new location presents a tempting opportunity to try something new and different. But this type of experimentation has led to many failed expansion efforts.

Remember, your current success – the success that made this growth necessary in the first place – was built off your first location. Change it up too much, and you may lose the spark that made your business such a hit with customers.

Of course, that doesn’t mean your new location has to be a carbon copy of the first. You can always add new products, services or menu items to mix things up a little. Just don’t miss out on the opportunity to replicate your prior success.

Focus on culture

Company culture is one of those things that can be hard to quantify. But we all know a good one when we experience it. And you should never discount its worth. Oftentimes, your culture is defined not only by your vision and values – but by the way you treat customers and employees. To make sure your existing culture isn’t lost during expansion:

• Take note of what makes your business special.
• Document important processes and incorporate them into your training efforts.
• Be sure the managers at your new location understand and embody the culture you’ve worked so hard to build.

Build your brand

If your first location is a success, you may fall into the Field of Dreams trap – believing “if you build it, they will come.” Don’t make that mistake. Never underestimate the importance of marketing and communications in your growth efforts.

Instead, consider ways to get the word out – whether it’s through social media marketing or more traditional advertising efforts. And don’t ignore your biggest fans: your existing customer base. Empowering loyal customers to help spread the news of your expansion is another great way to build awareness and excitement.

Calculate cash flow

Regardless of how much time and money you decide to invest in your new business location, it will probably cost more than you planned. That’s why it’s important to build a realistic projection of your profitability.

Since you’re deciding to grow, we’ll assume your first location is already profitable. But is it profitable enough to cash flow your other location if it takes longer than expected to break even? If it’s not, do you have access to the financing or capital needed to make things work?

If you’re not good with data and numbers, find someone who is. Because a mistake here could mean problems for not only your new location – but the first one, as well.

Find the right people

As a business owner, you know good help is hard to find. But you’re going to need hard-working, dependable employees to grow your business across multiple locations.

The reasoning here is obvious. You can’t be in two places at once. And if you tried, you’d be spreading yourself too thin. So you’ll need to entrust the work of growing your business to others.

Before you branch out, it’s important to know you have others who can manage things in your absence. If you don’t have employees who are ready to take on this responsibility, or if customers insist on doing business with you alone, it may be wise to hold off on expansion for now.

Protect your investment

Here’s another hard truth: As your business grows, so does your risk. And we’re not just talking about the risk of launching a successful business. This also includes risk associated with commercial property damage, workers’ compensation claims, theft and lawsuits.

Before you commit to opening a new location, give your Erie Insurance agent a call. Your agent can help you customize your business insurance policy to meet the exact needs of your growing business – whether you run an auto repair shop, restaurant or construction company.

As an ERIE customer, you also have access to assistance from a risk control consultant who can help you evaluate the potential risks your business faces – and recommend measures you can take to help reduce them.