Business protection and planning for its future
Setting-up and running a business takes a lot of hard work, and is a huge achievement. In which case presumably you want to protect it and plan for its future through some sort of Business Protection? Yet in our experience, it is very common for these matters to somehow slip to the bottom of the list of priorities, or even not make it on the list at all.
You might think your business doesn’t need protection and that it doesn’t really matter. Well, let us ask you these simple questions. If you lost a key member of staff:
- How would your business cope financially?
- Could the business actually continue to trade?
- Would there be sufficient cash-flow to replace lost profit/repay outstanding loans?
When any of these things happen in your business at best it is likely to cause disruption, at worst it can mean commercial disaster!If you have business protection plans in place to protect your business from risks such as these, you eliminate a whole host of problems and save yourself countless sleepless nights. So the answer to the question does business protection really matter, is definitely yes!
It’s not just about business continuity; business protection succession planning is also vital in protecting the stability and sustainability of the business. This includes transferring ownership and control of the business to new management, most commonly at retirement. It is therefore worth considering:
- Who will take over the running of the business when the owner retires?
- Who would you want to get control of the business?
- Where would the money come from to make sure this happens?
- What would happen if one of the business owners unexpectedly became critically ill, or died?
It’s easy to put things off because they don’t seem to be important right now. But we never know what’s around the corner. If you don’t think through these questions properly, the results of not having proper business protection in place can be devastating; the business might not fall into the hands you want it to, and you might not be able to leave a legacy to your family.
Most businesses don’t think twice about protecting their material wealth – buildings, contents, stock, vehicles etc. However, the vast majority don’t insure their biggest asset – their key employees. Here at Octagon Financial Services we provide a range of products, each tailored specifically to mitigate the potential risks in your particular business. These include:
- Life Cover
- Key Person Cover
- Relevant Life Cover
- Critical Illness Cover
- Shareholder or Partnership Protection
- Loan Protection
Because everyone’s business protection requirements are different, there are too many options to list here. Instead, we recommend you get in touch and we can offer advice based on your particular situation.