-
-
-
-
Home > > Selling your business > Could your business survive without you?
Could your business survive without you?
As accountants and business advisers we get to know our clients very well. From our position, it is all too clear to us that many clients are too focused on 'today' to give serious thought to the future, and in particular to a future in which they will not play a part.
While the immediate challenges facing you in your business and personal life are undoubtedly important, you should also set aside some time to consider what would happen to your family and to your business if you became seriously ill, or were killed or incapacitated in an accident.
It is possible to take out life insurance and insurance against loss of earnings, but whatever event might trigger your removal from an active role in your business, whether permanent or temporary, you need to consider what steps you should take. As a business owner, you have responsibilities to staff and customers, too. Insurance can cover the immediate financial loss, but only some form of succession plan can create a structure to pass the management and control of your business into one or more safe pairs of hands.
Taking over the reins
If you are the sole owner of a business, you may wish to think about bringing family members into the management team if you want them to continue to be involved in running the business. If family members are not suitable, consider ways to ensure that key staff members can be retained and empowered to run the business, securing their own futures as well as those of your family. If the business cannot survive without you, are there steps you can take to maximise any value in the business, which can provide capital or an income in the future? If you are a co-owner of a business, the same basic points arise, though you will have the advantage of the co-owners' interest in continuing a successful business in your absence.
An essential element in a business or personal 'disaster' plan is that the key people need to know in advance what will be expected of them, and be comfortable with it. Once you have a clear idea of how you see matters developing, talk it through with the family members, colleagues and advisers who will have a role. Some people may feel unable to take a formal role - others may show hidden strengths.
Enduring power of attorney
One thing many people still overlook in planning for a crisis is that while they will have appointed executors who can step in immediately to manage their affairs if they should die, in cases where they are only ill or injured no-one is empowered to act for them. An enduring power of attorney formalises the situation, so that in the event that you are unable to manage your affairs, someone you trust can take over until you recover, or are well enough to resume control.
None of us know what is around the corner. We can help you to formulate your own disaster plan - it is essential that you talk to us about what you can do now to protect yourself, your family and your business if the unthinkable happens.
Selling your business
- Capital gains tax calculator
- Could your business survive without you?
- Entrepreneurs' relief
- How to increase your profit
- Planning your exit strategy
- Seven steps to successful business transition
- Staying on your feet
- Succession - loosening the family ties
- Valuing your business for sale
- What is your business worth?
Our Latest News
- Increase in risk of a second recession, says think-tank
The chances of the UK economy entering a second recession next year have risen, according to the National Institute for Economic and Social Research (NIESR).
- more
- UK skills training needs radical overhaul
The British economy could find itself facing a period of decline if the skill levels of the workforce do not show marked improvement, it has been claimed.
- more
- Compulsory retirement age to be retired
The government is proposing to scrap the default retirement age of 65 by October 2011.
- more
- Savers not being told about interest rate changes
Many banks and building societies are failing to keep savers properly informed about changes to the interest rates on their accounts, comsumer group Which? has claimed.
- more
- Self-employment declarations should be respected
With thousands of people predicted to start up their own micro-businesses as unemployment rises, a business group has called on the tax authorities to respect their employment status.
- more
- Government publishes a raft of tax consultations
The Treasury has issued nine consultation papers on various aspects of the personal and business tax system in what amounts to a far-reaching overhaul of the entire regime.
- more
- Prospect of rise in energy costs for business
Businesses have been warned that they could see a steep rise in energy costs over the coming years.
- more
- Banks under pressure to increase small business lending
Banks could face possible tax sanctions if they fail to boost lending to smaller businesses.
- more
Harrison Young,
First Floor,
1 Gatton Road,
London
SW17 0EX
TEL: 0208 767 0151
FAX: 020 8767 5359
Click to email us
Harrison Young is a trading style of Ashley Ross Limited, Registered in England no. 05717229 and whose registered office is at 1 Gatton Road, London SW17 0EX.and is registered as Auditors by The Association of Chartered Certified Accountants. Read our Disclaimer.