How to protect your business and avoid putting it at risk
25th July 2017
Nick Jenner from Square One Financial Planning began the workshop advising that there is a general lack of awareness about the potential risks to business. Nick asked the audience 3 questions;
- What would happen if a business owner suddenly died?
- Can the business repay debts after the death of a stakeholder or key employee?
- What happens if the majority shareholder is diagnosed with a terminal illness?
He then went on to advise that 48 is the average age of a business owner but that 47 is the average age of a critical illness claimant. This generated some interesting discussion and questions by the audience - it became clear that many business owners do not think of the risk until it is too late.
Another topic of interest was, Key man protection - are the key people within your business insured?
In conclusion the effects of losing a stakeholder or key person can be devastating, the solution to fix the unforseen is simple and most businesses can afford the premiums more than they can afford not to have cover in place.
We then moved on to Kathryn Paisley from Rix & Kay who discussed the importance or Shareholders' agreements within limited companies.
Kathryn emphasised the importance of talking to each other at the outset and how you need to be clear in what you are trying to achieve together.
So what goes into a Shareholders' Agreement? It is important to understand that this document is private and should be altered as and when the business changes.
Why not take a look at the full presentation 'How to protect your business and avoid putting it at risk'