Its a RISKY BUSINESS...!
Business ownership is a risky venture as all in business well know.
It can be richly rewarding, often bestowing fabulous income and wealth upon those brave enough to venture in. Conversely, it can be as equally destructive... changes in fortune can come swiftly and without warning and the lives of the unprepared left in ruins! And that brings us to the point of why a simple but effective risk management strategy is essential for all business proprietors.
In a few words, risk management is simply the practice of managing your affairs in such a manner as to reduce the probability of risk events striking, and if and when they do, minimizing their impact upon the business, its owner/s and their families.
Now that sounds a bleak outlook for what is a fantastic enterprise, but it is the reality of business. It is vitally important that all business proprietors have both their business and private affairs in order for the day that the unexpected happens.
The first and common problem is however, most of us don't have the time, inclination or resources to plan and review our affairs to the extent that we ought, and the outcome is that many business proprietors are left vulnerable.
Furthermore, what planning and reviewing we do undertake tends to be piecemeal and ad-hoc with a variety of advisers and specialists (who probably don't consult each other);
- Our business structures and estate planning tend to be the result of evolution as opposed to intelligent design (excuse the pun)!
- We either don't have all the documentation we need such as Wills, business agreements, EPA's etc and if we do they are often well out of date, and like our structures evolved over time rather than the result of a master plan.
- The governance of our businesses, wider financial affairs and Family Trusts is often inadequate - governance I hear you say? What do you mean by that...? What does that have to do with risk? It matters!
- Our insurances are often hopelessly inadequate and seldom if ever reviewed - who's got the time or inclination to do that anyway...? We hope we'll getaway with it but many a poor soul discovers to his or her great misfortune at claim time that they didn't have the level and/or type of insurance that they needed ...
Business ownership requires offensive savvy atop a foundation of defensive strategy
Are you building your empire (however great or small) on sturdy foundations? Might your foundations be a little flimsier than you think and at risk of collapse following adversity of tragedy striking?
Safe business ownership requires a defensive strategy underpinning their business activities that consists of four legs such as depicted in the illustration below. If there is weakness in any one (or more) of them, then you are at risk!
Unbelievable DISTRESS!!!
A review of your affairs with your InControl™ accredited accountant or financial adviser changes your reviewing and planning from this approach depicted here.......
Having to deal with a gaggle of advisors and sales personnel to sort things out
To This............
Dealing with one primary adviser who completes your review and guides you through the implementation of any requirements identified in the review.
And This....The far too common state of people's affairs..................
To This............
All the pieces of the jigsaw put together cohesively and your bases covered!
So whether you require a full and thorough review of your wider business and/or private affairs,
or any one or more aspects therein, ask your financial adviser if they are an accredited InControl™
licensee, or click below to contact us for an InControl™ accredited adviser near you.
