Simmers & Co
Topical Points Answer
How can I ensure that my business will survive if I am not there to run it?
Faced with the demands of running a business and managing personal and family finances, few of us take time out to consider what we should be doing to protect ourselves, our families and our businesses from the effects of ‘disaster’ - illness, injury or death. Any of the three could permanently remove you from your active role.
Every business owner needs to look at the various ways of preventing a collapse in the business, should the worst happen. An enduring power of attorney is one key to smooth running of your affairs if you are unable to manage them yourself, while insurance offers another part of the answer. Traditional life assurance, critical illness insurance, key-man insurance and even holiday travel insurance can all provide cash at the critical moment.
However, only some form of succession plan can really create a structure to pass the management of your business into one or more safe pairs of hands.
Your succession plan can involve bringing other family members into the business, but also ensuring that key staff members are retained and empowered to run the business - working to secure their own future as well as those of your family. If the business cannot survive without you, there are steps you can take to maximise any value which still remains. If you are a co-owner of a business, the same basic principles arise, though you will perhaps have the advantage of your fellow owners’ self-interest in continuing a successful business in your absence.
An essential element in the successful formulation and implementation of a business personal disaster plan is that key people need to know in advance what will be expected of them, and be comfortable with it. Once you have a clear idea how you see matters develop, talk your plans through with family members, colleagues and advisers who will have a role. Some people may feel unable to take a formal role - others may show hidden strengths.
Planning for the worst is essential. Please contact us now to help
you ensure a safe financial future for you and your business