As small business owners, we understand many of the pressures involved in keeping your business going day to day. Sometimes there’s so much going on, that we forget to take time out to think about the things that are vital to keeping our businesses going. One of these is making sure we’re protecting our most valuable assets – ourselves and our key people – the very people whose skills and expertise are crucial to the success of the business.
According to recent statistics, one in three people will suffer a major illness or injury that will stop them working for three months or longer. If this happened to you or one of the key people in your business, how would this impact you financially? Would you be able to pay yourself a regular wage? Would you be able to continue to pay your debtors or your staff? And how long would your business be able to run successfully without you or without a skilled person in a particular role?
The simple truth is that while many of us have worked tirelessly to build up our businesses, the majority of us don’t do enough to protect ourselves from losing key members of staff. The crucial thing to consider is how much money your business would need to survive without your key people and for how long? Would it simply be some form of short term cover to keep the business ticking
over or would you need to hire some replacement labour until your employee was able to return to work.
Worse still, what would be the impact to your business if you or a key person in your business passed away suddenly, or suffered a permanent disability and was unable to return to work? A lump sum injection of money would minimise the financial impact of losing a key person, perhaps allow you to pay off your business debt, have the money and time to find and fund a permanent replacement or simply keep the bank happy!
So before you think that business insurance is just another expense, take a minute to think about what would happen to your business without it.
Come and have a free, no obligation discussion (and cup of coffee!) with us at Foresight Financial Planning. We can work with you to find some affordable options to people proof your business
both now and in the future.
A free disclosure statement is available on request.
Foresight Financial Planning received HighlyCommended in the New Business Excellence category in the Taranaki Business Awards 2013.