What are the Top Risks Facing Orlando Retailers in 2015?

What are the Top Risks Facing Orlando Retailers in 2015Throughout the years, Orlando retailers have had to face many risks; everything from property damage from a storm to customer or employee theft. Whiles these threats do still exist, in the last couple of years we’ve seen a whole new risk exposure; cyber liability. With high-profile cases such as that of Target and Home Depot’s customer credit card information being stolen, it’s no secret that retailers need to be aware of their loss opportunities. In addition to financially protecting yourself with the right Orlando Retail Insurance Policies, however, it’s imperative to understand the top risks facing Orlando retailers this year.

Data Breaches

Data breaches, naturally, make the list of the top risks facing Orlando retailers this year. While the Target breach and breaches at other national retailers have not yet seriously impacted customers, the potential for fraud is still there. Consumers know this, and the fact that they’re at risk can do a lot to shake their faith in those brands, as well as smaller local retailers. The risk is that consumers will become afraid of shopping.

Profit Margin Competition from Online Retailers

Online retailers have an advantage over brick-and-mortar stores; they do not need to make as big of a profit margin because they don’t have the same insurance risk exposures as brick-and-mortar retailers do. This means that they can charge cheaper prices and it some cases still even make more money. The challenge this creates for Orlando retailers is that they must market their products in a way that distinguishes them from their competition, while remaining ethical and following all state and local laws when it comes to marketing practices.

Theft

Although great strides have been made in reducing shrink within retail stores, theft still remains a top risk for Orlando retailers this year. In order to manage this risk, it’s required to have an inventory management strategy in place; whether this is simply utilizing in-store security cameras to monitor employees and customers or locking up higher-priced items, such as jewelry, and only allowing it to be accessed by a designated employee.

At Newman Crane, we specialize in helping Orlando retailers find complete Retail Business Insurance solutions. Our Central Florida Insurance Agency can help manage the liability exposures your company may face. We offer a wide range of Orlando Business Liability policies which can help mitigate liability disasters caused by hackers and identity thieves. Call our specialists today at (407) 859-3691 for more information about how we can help protect your organization.

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How Can Equity Crowdfunding Help Orlando Businesses?

How Can Equity Crowdfunding Help Orlando Businesses?In a recent post we discussed how to finance a new small business where we mentioned private investors and venture capitalism. One financing method we did not mention is crowdfunding, because until now this option has been limited for Florida business owners.

Two new Florida Senate bills that will legalize equity crowdfunding, were recently approved by state lawmakers and currently await Governor Rick Scott’s signature. Senate Bill 914 and House Bill 275 could be great news for up-and-coming Florida based companies, as the legislation could make it much easier for budding businesses to secure the funding they need to progress. For those unfamiliar with the term, equity crowdfunding is a means of securing investment funds that allows companies to accept monetary contributions from investors in exchange for company stock.

Crowdfunding can be a great way for Orlando businesses to secure the vital funds they need to grow and cultivate a young business. According to estimates for 2014, crowdfunding was projected to add at least 270,000 jobs and inject more than $65 billion into the global economy last year. An infographic published in 2014 by crowdfunding platform Fundable shows that for every dollar invested through crowdfunding, leads to $6.36 in revenue. Experts predict that by 2020, crowdfunding will generate over $3.2 trillion in economic value per year.

The value of crowdfunding is real, and Orlando business owners will soon have the flexibility and opportunity to make such solicitations throughout the state of Florida. This can be a great opportunity for businesses looking to expand.

Beginning a new business, or expanding a current venture, can be exciting. However, new business opportunities also come with increased risk exposures. Whether you are current Central Florida business owner looking to grow your operation, or an entrepreneur looking to start a new venture, the right risk management strategy and Orlando business insurance portfolio is vital. At Newman Crane we understand the hard work and dedication it takes to build a business, and the severity of losing those hard earned assets in a lawsuit. That’s why we are committed to providing quality and affordable insurance in Orlando FL. For more information about us and the specialty industries we serve, contact us at (407) 859-3691.

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Orlando Retailers Face Rise in Cyber Vulnerabilities

Orlando Retailers Face Rise in Cyber Vulnerabilities

According to reports, the last few years have experienced an unprecedented level of cyber attacks on retailers throughout the country. Internet security firm Symantec reports that the incidence of “mega-breaches,” or those potentially affecting at least 10 million individuals, jumped 700 percent in 2013, and last year saw an even greater number of devastating cyber attacks on retailers large and small. The Target cyber breach alone could reportedly cost upwards of $1 billion to the corporation.

As a result, retailers large and small around the globe are scrambling to put systematic plans in place to head off the next next cyber attack and protect themselves against a data breach. Experts say that there are several reasons why cybercrime is on the rise from retailers, and they all have to do with increased vulnerabilities relating to modern technology and business practices.

Three of the most prominent exposures come from:

  • Increased reliance and access to cloud computing
  • The rise of data mobility, transferring and storage. For example USB and other external data storage devices can create a number of security concerns.
  • Increased prevalence of credit card usage, and many small retailers utilizing mobile point of sale systems and technology.

Given the increased vulnerabilities and the rising threat of a cyber attack or data breach, Orlando retailers must increase their defenses against data hacks. Even with world-class IT programs and security services, there is a very real possibility that your business will at some point become exposed to a cyber security breach. As such, it is vital that Orlando retailers obtain a strong cyber insurance program to protect themselves form potentially costly losses.

At Newman Crane, we specialize in helping Orlando retailers find complete Retail Business Insurance solutions. Our Central Florida Insurance Agency can help manage the liability exposures your company may face. We offer a wide range of Orlando Business Liability policies which can help mitigate liability disasters caused by hackers and identity thieves. Call our specialists today at (407) 859-3691 for more information about how we can help protect your organization.

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3 Ways to Finance a New Central Florida Business

3 Ways to Finance a New Central Florida BusinessIn a recent post we discussed the bounty of new business opportunities emerging in Seminole County, but starting a new business can be a costly and time consuming adventure. While the cost of building a business from the ground up varies widely depending on the business model and chosen industry, experts estimate that the average cost of starting a small firm in the United States is over $30,000 and rising. According to the U.S. Small Business Administration (SBA) a micro-businesses can get started for as little as $3,000 or less if the operation is a home-based sole proprietorships with low upfront investments, but these operations are often limited to service providers or professional consultants. When it comes to opening a storefront or hospitality sector operation the investment and start up capital needs greatly increase.

As such, a common question from many prospective Central Florida business owners is, how can the new operation be financed?

According to Consumer Reports, roughly 68 percent of start-up financing comes directly from the pocket of the business owner. In many cases entrepreneurial hopefuls will leverage their liquid assets, leverage their property assets or retirement plans, but these tactics can be extremely risky especially should the business struggle or fail. Instead, there are many other, more secure ways, to finance a new business. Here are a few options:

  • Bank Loans- Entrepreneurs can acquire a Small Business Loan of up to $750,000 from your local lender, backed by a partial guarantee from the SBA. By backing these loans the SBA makes it less risky for a local lender to provide small business owners with the financing they need.
  • Private Investors- Private investors, often referred to as “angel investor” or an informal investor, is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. These investors will often offer up start-up capital in exchange for a share in business ownership.
  • Venture Capital- Venture Capital firms will invest money into a budding business with the anticipation of a rapid return. In most cases, these lenders expect their investments will liquidate in 3 to 7 years as the firm either becomes publicly traded on the stock market or is acquired by another company, and the invested funds will be repaid to the firm.

Beginning a new business can be exciting, however new business opportunities also come with increased risk exposures. Whether you are current Central Florida business owner looking to grow your operation, or an entrepreneur looking to start a new venture, the right risk management strategy and Seminole County business insurance portfolio is vital. At Newman Crane we understand the hard work and dedication it takes to build a business, and the severity of losing those hard earned assets in a lawsuit. That’s why we are committed to providing quality and affordable insurance in Central Florida. For more information about us and the specialty industries we serve, contact us at (407) 859-3691.

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Seminole County Business Opportunities Are Abundant

Seminole County Business Opportunities Are AbundantEarlier this month Seminole County officials and sports leaders attended the groundbreaking ceremony of the new $27 million sports complex under construction in Sanford. Located near the Orlando Sanford International Airport, the new project consists of 15 fields for baseball, softball, soccer, football and lacrosse in an attempt to lure more sporting events to Central Florida and boost the local economy. Expected to be completed by 2016, Seminole County Commission hope that the complex will draw up to 63,000 athletes and spectators a year, and can generate more than $10 million in economic impact annually.

The complex will offer far more than just athletic fields and greens. Additional concessions, support facilities, playgrounds and other amenities have been incorporated into both the design and budget. However, experts have pointed out that the area currently lacks the essential accommodations and outside supporting infrastructure. Analysts have stated that if Seminole County is hoping to draw the expected 60,000 annual attendees to the complex, it will need to encourage new business growth in the areas, specifically in the retail, hospitality, restaurant and entertainment sectors. As such, there is ample opportunity, as well as a real necessity, for Seminole County business owners and entrepreneurs to grow or expand new businesses in the area.

However, new business opportunity also comes with increase risk. Whether you are current Central Florida business owner looking to grow your operation, or an entrepreneur looking to start a new venture, the right risk management strategy and Seminole County business insurance portfolio is vital. At Newman Crane we understand the hard work and dedication it takes to build a business, and the severity of losing those hard earned assets in a lawsuit. That’s why we are committed to providing quality and affordable insurance in Seminole County. For more information about us and the specialty industries we serve, contact us at (407) 859-3691.

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Quick Tips on Orlando General Liability Insurance

Quick Tips on Orlando General Liability InsuranceOrlando General Business Liability coverage goes by many names, but is one of the most basic strategies for protecting any operation against the financial burdens that accompany certain types of liability lawsuits. This coverage is designed to cover the cost of a business’s legal defense and any settlement or award should the operation be successfully sued. Typically these include compensatory damages, non-monetary losses suffered by the injured party, and punitive damages.

While general liability coverage won’t protect an operation from all the liability exposures they face, it does provide coverage in four key areas:

  • Third party injury: One of the primary reasons all businesses should attain general liability coverage is that these policies protect Orlando businesses from claims of causing direct or direct injury or bodily harm to a third party. This coverage kicks in if a client, consumer, or other third party gets hurt on or by business property general. An Orlando business’s general liability policy will provide for the necessary medical expenses.
  • Third-party property damage: General liability insurance can also protect businesses from the financial repercussions of property damage that is the result of the business, business owned property or employees. It will also protect tenants should they cause damage, such as fire or water damage, to a rented or leased property.
  • Slander, false advertising and other claims: General liability will often provide some level of protection against claims of some wrongful business practices such as false or misleading advertising, including libel, slander, and copyright infringement. However, the limits are often low and in most cases Orlando businesses will need to secure additional liability coverage to bolster their protection in this area as these lawsuits frequently get costly.

Orlando general liability insurance can be purchased on its own or included as part of a Business Owner’s Policy (BOP) or other package policy, which bundle liability and property insurance into one policy for ease. However, when bundled together liability coverage limits tend to be quite low, which often leaves businesses unknowingly exposed financial losses. According to the U.S. Small Business Administration, when purchased as a stand alone policy the annual premiums for general liability insurance range from $750 to $2,000 depending on your line of business and coverage needs, making this coverage one of the most affordable insurance options for many small businesses.

At Newman Crane, we specialize in helping Florida business owners find the Orlando small business insurance and risk management solutions they need to protect their employees and their assets. If you are looking for quality commercial insurance programs at affordable rates, contact us today at (407) 859-3691 to learn more how our Central Florida Insurance Agency can help you.

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