Running a small business comes with plenty to juggle, and while insurance might not be the most thrilling task, it is absolutely essential. There is one policy you are legally required to have: employers' liability insurance (EL). If you employ anyone, EL covers legal and compensation costs if someone falls ill or gets injured at work. Missing it could cost you a hefty £2,500 per day in penalties.

Beyond what is required, there are a number of other smart protections to think about:

• Public liability insurance (PL) protects against claims from members of the public, for instance, if someone has an accident at your premises or your team accidentally damages someone's property. Many clients or suppliers will require proof of this cover before doing business.
• Contents and portable equipment insurance covers your essential business gear, such as furniture on-site or gadgets you take out (laptops, tablets, smartphones), in case of theft, fire, flood, loss, or damage.
• Professional indemnity insurance (PI) is vital if you offer expertise or advice. It covers you if a client suffers a financial loss because of something you did or did not do. Many clients expect this sort of protection before hiring you.
• Directors’ and officers’ liability (D&O) protects company leaders personally if there is a claim against them, such as breaches of health and safety laws, pension mismanagement, or financial errors.
• Cyber liability insurance is increasingly important in the digital world. It helps cover the costs of data breaches or cyber-attacks, including claims, compensation, and even IT or legal support.

Running a small business often feels like walking a financial tightrope. Cash can be flowing in nicely one month, only to dry up the next. With interest rates higher than they were for years and lenders tightening their checks, access to money has become a bigger challenge. That is why focusing on cash flow resilience is so important right now.

Cash flow is not just about survival; it is about giving your business room to grow. If you are waiting too long for customers to pay, your money is tied up when you need it most. A simple review of credit terms, clearer payment reminders, or offering small discounts for early settlement can make a real difference. On the other side, talking to suppliers about extending your payment period may also ease the pressure.

When it comes to funding, traditional bank loans are no longer the only option. Small firms are making use of alternative routes such as peer-to-peer lending, invoice financing, and short-term credit lines. These options can be quicker to arrange, but you need to check the costs carefully so that repayments do not become a burden.

One tip is to keep your financial information in good order. Banks and alternative lenders want to see clear, accurate figures before approving funds. Regular management accounts, cash flow forecasts, and evidence of good record keeping all build confidence. In practice, a well-presented finance pack can be the difference between a “yes” and a “no.”

The message is clear: do not wait until cash is tight to act. Regularly review your inflows and outflows and know what funding options are open to you. A resilient approach to cash flow can protect your business in tough times and put you in a strong position to seize opportunities when they come along.

For many small business owners, finding and keeping good staff is one of the biggest headaches. Recruitment is costly, time-consuming and uncertain. That is why focusing on staff retention is one of the smartest moves you can make.

People stay where they feel valued. Pay matters, of course, but many small businesses cannot simply compete with bigger firms on salary. The good news is that today’s workforce values other things just as highly, such as flexibility, wellbeing and opportunities to grow.

Flexible working is top of the list. Offering staff the chance to adjust hours, work some days from home or fit work around family life can make your business stand out as an attractive employer. It costs very little to implement but makes a huge difference to loyalty and morale.

Wellbeing is another area where small firms can excel. Simple steps such as promoting regular breaks, encouraging a healthy work-life balance or creating a supportive team culture go a long way. Staff who feel cared for are more likely to give their best and stay longer.

Training is also key. Investing in low-cost learning opportunities, whether through online courses, mentoring, or in-house skill sharing, shows employees that you are committed to their development. People who see a future in your business are less likely to look elsewhere.

Remember, retaining staff is not just about avoiding the cost of hiring replacements, it is about protecting relationships with customers and maintaining business know-how. Every time you lose a team member, you also lose some of the experience and trust they have built.

At a time when skilled workers are in short supply, small businesses that look after their people will gain a real competitive edge. A little flexibility, support and encouragement can turn staff into long-term partners in your success.

Many business owners see their bank overdraft as a flexible safety net. When cash runs short, the temptation is to ask the bank for a higher limit to keep things moving. While this can provide breathing space in the short term, relying on overdrafts to cover trading losses is one of the riskiest financial strategies a business can adopt.

The key problem is that an overdraft is designed for temporary cash flow fluctuations, not for funding ongoing losses. If sales are falling, margins are shrinking, or costs are out of control, borrowing more simply masks the underlying issues. Instead of addressing the root causes, the business is kicking the problem down the road.

Increased overdrafts also come at a cost. Interest rates on overdrafts are typically higher than other forms of borrowing, and banks may also charge arrangement fees. Over time, these costs eat further into already fragile cash reserves, worsening the loss cycle rather than solving it.

There is also the risk that the bank will eventually say no. If the overdraft has been repeatedly extended and the business still cannot show a plan for recovery, lenders may lose confidence. This can result in the overdraft being frozen or called in, leaving the company without working capital and at risk of insolvency.

A safer approach is to treat persistent overdraft use as a warning signal. It should prompt a review of pricing, overheads, and profitability, and may require fresh equity, restructuring, or a long-term loan if borrowing is genuinely part of the solution. Using overdrafts to fund losses may buy time, but without decisive action, it is rarely a path to recovery.

In every market, businesses face competition. Some competitors may be larger, others may have deeper pockets, but gaining a competitive advantage is not always about size or spending power. It is about finding ways to stand out, deliver value, and build loyalty in ways that others cannot easily copy.

The starting point is understanding what your customers really want. Many businesses assume they know, but without asking directly, they risk focusing on the wrong things. Regular feedback, surveys, and conversations with clients can reveal needs that are not currently being met. Meeting those needs better than your rivals can quickly become a strong differentiator.

Another route to advantage is efficiency. Streamlining operations, adopting smarter technology, or cutting wasted time and cost can enable a business to deliver faster or at a lower price without reducing quality. Even modest savings can provide extra flexibility when pricing against competitors.

Brand and reputation also play a vital role. Trust is hard to win and easy to lose. Businesses that consistently keep promises, communicate clearly, and support their customers when problems arise often enjoy loyalty that competitors cannot buy. A strong reputation can be worth more than any marketing campaign.

Finally, innovation should not be overlooked. This does not always mean launching new products. It can mean packaging existing services differently, offering subscription or fixed-fee pricing, or providing added advice alongside the core offering. Small changes that make the customer’s life easier can be the difference between being a supplier and being a trusted partner.

Competitive advantage is rarely achieved through one big step. It comes from a series of consistent, customer-focused improvements that, taken together, make the business the obvious choice in a crowded market.