Expect the unexpected - how would your business cope should the worst happen?

There is never a quiet moment when you run your own business. With a never ending to do list and opportunities to explore, business continuity is unlikely to be high on your priority list! But what would happen to all your hard work if you, or one of the key members of your team were taken seriously ill or died?

You probably already have cover in place for your buildings, fixtures and fittings but what about your business' biggest assets - you and your team? We often hear clients say, "I'm sure it won't happen to me" but the reality is that the unthinkable can and does happen:

• Cardiovascular disease (disease of the heart and circulation) causes a quarter of all deaths in the UK - an average of 420 people each day which is the equivalent to one death every three minutes*
• One in two people born after 1960 in the UK will develop cancer at some point in their lifetime**
• Every four minutes someone in the UK dies of cancer***

Q: As a business owner, if you were to die, what happens to your shareholding? Would your spouse end up on the board with your fellow shareholders/Directors? Is this the best outcome for the business and your spouse?

A: Shareholder Protection is a way of ensuring that the capital is available to your fellow Directors to buy your shares from your spouse/estate. This provides your loved ones with a lump sum when they may need it most and ensures continuity of the business for your colleagues.

Q: How would your turnover and profit be affected if you or one of your key team members were seriously ill or died? Would your business have the cash to bridge this shortfall whilst recruiting a quality replacement?

A: Key person insurance pays a lump sum to the business on the death of a key team member, helping you cover the loss in turnover and pay for the time and costs of recruiting a replacement.

We think that an important part of the financial planning process, with all our business owners, is to help them to identify potential risks to the continuity of their companies. We look at areas such as; what would happen to shareholdings on death; whether there are liabilities such as loans and how these would be repaid; what happens if one of your key employees is unable to work due to illness or death.

If you would like to discuss your business with one of our Financial Planners please contact us today at [email protected] to arrange an initial meeting at no expense to you.

Let us help you plan for the unexpected, so you can focus on developing your business!

*(British Heart Foundation CVD statistics UK fact sheet, November 2018)

**(Cancer Research UK Lifetime Risk of Cancer, January 2019)

***(Cancer Research UK, Cancer mortality for all cancers combined, January 2019)