Protecting Your Business Against Loss


As a business owner there are many concerns and issues that keep you up at night.  Some of those concerns may feel very immediate to you and you know they need to be addressed today.  For instance, what could have happened if you , a business partner or a key employee of your business had died or became  disabled  yesterday?  If this is a concern that keeps you up at night you may be wondering what  you can do to put your mind at ease?

First, think about the personal side – about you and your family. You own your business. It provides you and your family with income, which is your cash flow, as well as valuable benefits – think health insurance, life insurance, perhaps a car.  In essence, it provides you and your family with the financial security to live the life you want to live. It also has a value to you as a capital asset and provides value on your personal balance sheet.  But, if something happened to you – let’s say you had died yesterday – what happens to that cash flow, to those benefits, to the business as a capital asset?  A properly structured business succession plan can help you answer all of those questions.

Let’s think about the business side.  As an owner, and probably one of the key employees of the business, your presence is a key element for the success of the business.  Whatever your unique skill, if something happened to you – what happens to the business when your unique skill is gone?  What do your co owners need to do to have the business survive?  How can the business respond to the potential demands your family may have on the business for ongoing cash flow, benefits, or to convert the business interest into cash?   A properly structured business continuation plan can help you answer these questions.

There are many resources to help guide you through these questions.  For more information on business continuation.


The companies of National Life Group® and their representatives do not offer tax or legal advice.  For advice concerning your own situation, please consult with your appropriate professional advisor.