When it comes to understanding another small business, its motivations, its risks and it's potential in the world, only another small business can really appreciate that.
- Behind every successful, small to medium-sized business is usually a family, a set of friends and a burning drive for, flexibility, freedom and the chance to create your own future.
This unusual set of freedoms also brings with it an unusual set of decisions to make and risks to manage.
Protecting what you cannot afford to lose
- Fixed Business Expenses Protection
- Business Debt Protection
- Key Revenue Maker Protection
- Business Ownership ProtectionBusiness Ownership Protection
For the majority of small business owners, the majority of their wealth is tied up in their business. It’s the machine that provides the family cash flow (and compensates them for the long hours, demands and interruptions to family time) that only business owners with children understand.
Eventually we all want to stop working and enjoy the next phase in our lives – whatever that is – so the ability to continue to make good returns over time and maybe later sell a small business for a profit (perhaps get it ready for a formal exit or a transfer to someone else) all takes time and stability.
We can help you see and manage the risks.
The core vulnerability for a small business is their reliance upon their owner and potentially their key person
Empowering you to clearly understand the key risks to your business (and your family) is a big part of what we do at Sapience.
- Some business owners think of insurance as a frustration, a form of tax or just an expensive necessity to be kept at a minimum. It isn't.
- It's an essential key to managing the normal risks of life and business. It's the cost of being able to stay in the game and to make sure you're positioned to thrive and to win.
We believe managing your risks is really the foundation for all good business activity and a natural part of protecting your family.
- When a business better manages its risks, it stabilises its long-term viability by protecting its owners, the partners and the families that support it.
- For businesses with shareholders, investors or loan guarantors, there are an additional set of risks that need to be managed too.
The key risk indicator for families and family-run businesses is High activity with Low Strategy
Four Key areas of business risk to manage
Many business owners don’t know they can insure the cost of their ongoing fixed business expenses, in case they become sick or injured and unable to work.
- It costs money to make money, and it even costs money just to keep the doors open for business.
- It's these fixed costs of your business overheads (usually contractual in nature), that can be the downfall of a business whose owner is sick or injured and unable to work.
Protecting yourself from these fixed overhead costs means you'll still have a business to go back to when you get better. This can be a better solution than trying to pay your fixed recurring business costs from your own Income Protection benefit if you've become sick or injured and unable to work.
This protection strategy is particularly important for sole traders, where all business debts are your personal responsibility and partnerships where responsibility for costs can be shared equally and the sickness or disability of one partner would then increase the cost responsibilities to the remaining partners, all at a time when cashflow would already be under stress.
Are you protecting your key business assets - like your debts?
- Working capital, overdrafts, credit - whatever you call it, it helps smooth out bumpy cashflow and allows you to take advantage of opportunities.
Many business owners who don’t have debt protection insurance in place say they simply never knew they could insure their debts or never had a conversation with their accountant about 'how much the business really owed them and what they should do about it.
Are you protecting your key revenue makers?
- Business and their teams run on people and their ability to create, deliver and outthink the competition.
Business owners will often tell you that the key to long term success is to employ the right people. Many small businesses often rely upon the skills and knowledge of just one or more key people for generating the bulk of its revenue.
Are you protecting your ongoing ownership of your business?
- If you're working with partners, you get to benefit from their unique skills, perhaps their ability to underwrite debts and their contacts within your industry. At the same time to get to share in their risks, personal and professional and that can expose the business to greater than usual levels of uncertainty. So do something about that today.
Keeping hold of your money can be hard in business - but keeping hold of the ownership of your company can be harder.
Owning a business in partnership means all the partners need to protect their portion (equity investment) in the business to make sure the future control of the business stays with them.
So regardless of where your small business in its growth cycle; from a start-up or a partnership to established, to growth through to a pivot, to running as a successful lifestyle business (and hopefully a profitable exit) we can help keep you stable while you focus on moving forward.