What’s the biggest risk to a business – the loss of a key sales person or the death or illness of a shareholder?
Probably the biggest risk a business can face is simply not planning for such eventualities.
Whether you are a sole trader, in a partnership or indeed a limited company director, there are plenty of eventualities which you need to plan for. The trouble is that sometimes the biggest problem is the one which you’ve altogether missed.
There are many scenarios you could protect against but the below are a few which spring to mind…
- The death of a shareholder and the demands of their family to be compensated to the value of their shareholding – would the business have enough cash to purchase the shares?
- The death of a key employee who played a major part in the success of the company. How would you replace the income which that person generated?
- An employee becoming seriously ill – would you be able to continue paying him or her whilst they were unable to work and contribute to the business?
Hopefully this is food for thought.
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