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“Assets” is a pretty abstract term—and, when it comes to cigar businesses, one that probably covers a broader range of property types than you think. In this post, we’ll talk specifics: What kinds of assets worth protecting are common in different cigar businesses?
The question of how you might protect those assets—business structure, insurance, employment contracts, intellectual property registration, and succession planning, for instance—we’ll cover in some of our upcoming posts. In the meantime, let’s get down to brass tacks about which of your cigar business’ assets need your care and attention so, if anything should happen to any of them, your business can continue to flourish.
If You’re a Tobacco Farmer
You’ll want insurance to protect your buildings, equipment, and crops. If there are key individuals that keep your farm operating, you’ll want an adequately funded (with life insurance) succession plan. The right plan will ease the transition into new leadership or farming operations should one or more key people no longer work on the farm.
You should also make sure you’ve got the right employment contracts—agreements that are fair to both parties and offer sufficient protections in case, for instance, a worker decides to leave and use their inside knowledge to compete against you.
If You’re a Cigar Manufacturer
Because damage to your physical assets is probably the biggest threat you face, you’ll want to make sure you maintain adequate insurance—and that you fully understand what it does and does not cover before you sign up. At the very least, your policies should protect your buildings, inventory, income flow, and cigar rolling equipment.
You also probably have one or more brands and other forms of intellectual property you’d like to protect. You’ll want to obtain the appropriate registration to cover those rights.
If You’re a Distributor
As a cigar distributor, the biggest asset you’ll need to protect is your inventory. For this, there are insurance products available that can help you deal with casualty losses in case of loss due to any number of catastrophic events. Your other most valuable asset? It’s likely to be your industry contacts and relationships. Protect these with sound, carefully constructed business contracts.
If You’re a Cigar Retailer
You’ll want to have special business insurance policies in place to protect your cigar retailer-specific property and legal interests, such as your:
- Product inventory
- Income stream
- People (life insurance can be used for key individuals of the business)
- Vehicles
- Real property
- Business retail equipment
Intellectual property registration could also be critical if your establishment operates with a distinctive name, image, or slogan. And don’t forget employment contracts to prevent former employees from taking what they learn working for you and using it to compete against you later.
If you’re in the cigar industry and want to learn more about what you can do to protect your business assets, contact Venerable Law at 813-680-4530 for a free consultation.
