Would Your Business survive the loss of a key director or team member?
Business owners and directors rightly focus on the day to day running of a business and its profitability. But what would happen to the future of the company if a key member of the team suddenly became ill or at worse passed away? Running a business always involves an element of vulnerability. Premises can be rebuilt, contents and material assets can be replaced, but the recovery of a person is not nearly as certain.
It’s the people that make your business run smoothly, and without them (even yourself) your business would have a hard time functioning.
Do you want to ensure that your business can survive the loss of an individual, including yourself?
Have you ever thought how you would cope with unforeseen events and unidentified risks to your business?
- Do you have any key individuals who contribute heavily to profits and whose absence would affect your business?
- Have you identified who these individuals are? Is it you?
- Are any of your personal assets placed as security on your business debts?
- Does your business have any unprotected loans or debts?
- In the event of the death or critical illness of a key person or fellow business owner, could a cash injection help secure your future?
- If a cash injection was needed, have you thought where this money would come from? Would a bank loan be possible?
- What are the effects on your businesses credit availability, if a main profit contributor is no longer generating that profit?
- If a fellow business owner died, would you want to retain total control of the business?
- Would you want your estate to receive the value of your share in the business in the event of your death?
Our research shows that 40% of businesses would cease trading in under a year after the death/illness of a key person/Director/Business Owner. It would be prudent for business owners to consider taking advice on this matter. Hopefully it may never happen, but very often it does.
A sobering thought for 2016.
Company owners can contact MRA Business Solutions Ltd today for a complimentary initial consultation, giving you added peace of mind that your business could carry on to thrive and prosper into the future.