Small Business Owner/ Risk Officer – One of the Same! Part 1

As a small business owner, it is your job & responsibility to grow & protect your business, but of course you’re faced with many challenges when it comes to running a successful operation – challenges that curb you’re attention away from making important financial planning decisions for your business, employees and of course your family. 

Apart from your home,your business is typically your largest asset & in most cases with small business owners, your main source of income, so here are a few tips to help you hold onto what you’ve worked so hard to build.


Key person planning indemnifies the employer (Business) or partner/s for the event of loss or disability of one of its most precious assets; the key person, the employee chiefly responsible for the majority of income or profitability. 

Having a plan can replace income for:

  • Losses in sales, client retention and/or credit
  • The cost for hiring & training a new employee
  • Delays or halts in ongoing projects

In most cases with small privately held businesses the owner/ operator is the key employee, also typical is the fact that your personal & business affairs are closely intertwined and so should be handled simultaneously. Having Key Person planning in place is crucial if the business and your family are to successfully continue in the time of crisis.

Next…What About Partnerships? The Buy/Sell Agreement


Posted by APlanGroup


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