Business ownership is both rewarding and challenging, and starting from scratch is full of uncertainty. The licensing process often presents countless questions and a laundry list of costs for new entrepreneurs. Surety bonds are a common component of business licensing, but many first-time small business owners don’t know about them and are surprised by the sudden extra cost for something they’ve never heard of. Knowing what surety bonds are and the purpose they serve before you embark on your small business journey can alleviate stress on your startup capital and more importantly, yourself.
What do surety bonds do for me?
Surety bonds often help lend credibility to your small business as well as build trust in your customers. Because you’ve posted the bond and are being held accountable for your business practices, customers will see you as the credible, dependable option. Businesses can also benefit from bonds that aren’t required: for example, cleaning companies often purchase business service bonds to deter employee theft from clients. Being able to label your business as “properly bonded” can help potential customers determine that you’re the right choice. They’ll feel both confident in your abilities and satisfied that they won’t suffer any financial loss at your hands.
Surety bonds are a common piece of the business startup puzzle. As an industry professional, doing your homework and staying on top of your legal obligations will keep business running smoothly, all the way to success. Learn more about how surety bonds work and educate yourself here.