It’s your business – you run it, you work in it – without you to be fair there probably isn’t a business for someone else to buy. So you are the key person who makes everything happen – what happens when ‘it’ hits the fan? Something unexpected comes along and takes you down a different path… a significant part of your life is turned upside down.
This is not scaremongering – it’s an honest and very real question?
You are not capable of working – due to injury, illness or mental incapacity you can’t do the work – how are you going to keep the business going? Food still needs to put on the table and if you’re not earning, then can you manage? How long can you last without burning through any or all your savings?
Simple risk analysis is carried out by all potential investors in the form of due diligence checks on any business they plan to invest in. If you are looking at your business is it one that is built on a sound foundation that you would want to invest in yourself?
Some simple maths – what do you need to take out of the business every month to pay for the lifestyle that you currently have – don’t include a new car and a house in that figure, be honest. Now multiply that by 36. Not overly challenging – if you were to invest in a business would you really invest the figure you have just calculated. Most investors want their investment back within three years plus a serious return on that number as well.
You need some form of safety and security should you be incapable of working and bringing in an income. If your answer is simply that you’d outsource the work to associates and business partners then don’t forget to consider the fact that you’d lose 50-70% of that income in paying them, so you would be far worse off than if you delivered the work yourself.
Significant events happen every day in business and they take place outside of our control – are you prepared? What can you do now to prepare you should the scenario ever occur? Have you got the right support team â€“ The Power Team around you to help in these times? If not when and how are you going to create it?