Many small business owners have been forced to shut for the foreseeable future which could be detrimental as small businesses often have the majority of their assets invested in stock and may not have enough money to sustain the business and continue to pay bills for months with no sales.
The importance of diversifying your business offerings
The recent weeks have highlighted that businesses that have been able to adapt quickly to changing circumstances and diversify their offerings are the ones that will be successful in the long term. For example, many restaurants and pubs are offering meals delivered to homes. Some gyms have continued to charge membership fees by offering online workouts as opposed to physical gym access.
Small businesses need to be flexible and ready to adapt to challenges. The crisis has shown that businesses that cannot quickly adapt to change and diversify are struggling.
Protect your business from the unexpected
The Coronavirus has shown that you should plan to protect your business where you can. It is important to take out appropriate insurance to cover both your personal and business assets. You are likely to need multiple insurance policies to protect your assets in multiple situations.
Small companies are vulnerable if they lose a key member of its workforce. However, many small business owners are more concerned with generating profits rather than considering the long term and protecting the business income.
Have you considered what will happen to your business if you as the business owner were to get ill? Business owners may want to consider an income protection policy which is designed to replace a portion of your salary should you be unable to work due to illness or injury. This payment can continue until retirement. At Four Wealth Management, our Financial Advisers can find appropriate critical illness and/or income protection cover to protect you and your company. Policies can be tailored to your company needs.
How to ensure business continuity
When a business partner dies, the value of their share in the business is included in their estate and distributed according to their will. This could be a difficult time for the remaining partners and business. The beneficiaries might not be interested in running the business and the business might not have funds to buy the deceased partner’s share. Business protection is an effective way to help keep continuity in the business. It is a life insurance policy that provides funds to the business which can be used to purchase the remaining shares from the estate. The cover is combined with an agreement between the partners on how the remaining shares should be bought and distributed amongst the remaining partners.
At Four Wealth Management, we offer a small business financial planning service and your dedicated Financial Adviser will work with you to review your current policies and to ensure you have the correct insurance policies in place for both your personal and business circumstances.
Contact Four Wealth Management on 0117 973 0500 to find out more about their small business planning service.