Insurance
An independent entrepreneur assumes much more risk than an employee, especially when considering income loss due to illness or accidents. An employee’s income is guaranteed even during periods of sickness or accidents. Additionally, entrepreneurs can be held liable for damages and their business premises can be affected by any unwanted events. Before starting your business, assess the areas where you face the highest risks and ensure coverage for them. Seeking advice from an insurance consultant can be helpful, as they can provide valuable information.
Personal Insurance
Health Insurance
Every Dutch citizen is required to pay insurance premiums to the chosen insurance company. In addition to this basic insurance, various additional insurances may be necessary depending on different events.
The following optional insurances may be recommended according to your personal needs. (For more information, consult an insurance advisor):
Voluntary sickness insurance
Accident insurance
Private pension fund
Other insurance funds
Property and Liability Insurances
As a business owner, you need to consider various risks when running your business. Customers can hold you responsible for faulty products/services, and if the products were indeed defective or the work was poorly done, resulting in financial or personal damage, it can lead to high compensation costs. Anyone engaged in business activities carries several other risks, so it may be important to take out the following insurances depending on your business activities:
Entrepreneur’s liability insurance
Insurance covering legal expenses (if, for example, you have a legal case, the insurance covers legal advisory/solicitor fees)
Insurance for tools, machinery, equipment, products, business premises
Business interruption insurance (if you have to temporarily cease your business activities due to an unexpected event, this insurance covers your losses)
Business partner insurance (if your business partner is unable to work for some reason, this insurance covers potential lost income)
Computer insurance (including data loss)
Transportation insurance
Credit insurance
Business Plan
Without a business plan, you cannot apply for loans from banks, so in that case, you will definitely need to create one. Even if the financing of your business is feasible without a business plan, it is still advisable to prepare one, as it can be very useful in the long run.
By creating a business plan, you will have a better understanding of your company’s goals, both short-term and long-term, as well as your current and future clients.
Important elements of a business plan include:
You can easily find the formal requirements for writing a business plan online, with numerous examples, templates, and samples available for novice entrepreneurs.
General Terms and Conditions
It is advisable to establish general terms and conditions before accepting a job, as this can prevent conflicts and unpleasant situations between you and your business partners, as the rights and obligations of both parties will be documented in an official document. The following points are worth including in the general terms and conditions:
Quotation – when an offer is considered official
Delivery – whose responsibility is the delivery, insurance, payment of customs duties, settlement
Warranty – who provides guarantees for what in the contract
Liabilities – who is responsible for various arising liabilities
Definition of fulfillment – when a transaction is considered completed
Resolution of disputes – legal settlement of disputes
Transfer of ownership – when does the ownership of the goods legally transfer to the buyer
General terms and conditions should not be overly strict, as it can make cooperation between the parties difficult. Before entering into a business agreement with your partner, make sure to inform them of the general terms and conditions. If your business partner also has such conditions, you need to agree on which ones to follow.
Distance Selling
If you sell products or services online, through a webshop, and deliver them by mail or other means, it is important to provide proper information about the products, services, as well as the rights and obligations of the buyers. You can find further important information at the following link.
http://www.answerforbusiness.nl/regulation/long-distance-sales-and-purchases
