New businesses
often start with a great idea or a great new product. However,
in the rush to exploit their market many fail to plan at an
early enough stage for future unexpected events, yet many
internal and external situations which arise could easily
have been addressed at the outset.
Whilst nobody has a crystal ball to be able to predict the
businesses future, simple systems and safeguards can be implemented
to minimize risks. For instance, there is an all too common
failure to put in place formal partnership or shareholder
agreements. This is critical regardless of the size of the
business or the sector in which it operates, if the business
is to survive an unplanned event such as a disagreement, divorce,
disability or death. New small businesses confidently assume
that such disasters will either never happen to themselves
or dismiss the risks as being too costly to mitigate. The
reality is that they do happen and that the real cost is far
higher on those who have no plans in place to deal with the
event. Yet those businesses that have utilized good business
advice at the outset will have appropriate insurance policies
in place, conflict resolution arrangements agreed and business
valuation formulas established. These are the businesses which
will then stand the best chance of surviving the unexpected.
Some of the issues which a business should therefore include
in its disaster planning at the outset are as follows:-
• Establishing the right business structure at the
outset.
• Consulting a solicitor to ensure that an appropriate
partnership or shareholder agreement has been implemented.
• Ensuring that the business has protected its intellectual
property.
• Providing keyman life and critical illness cover.
• Planning an IT strategy which will enable business
continuity.
Whilst all of the above may seem to be a daunting prospect
for any new business, by taking appropriate professional advice
at an early stage many of the hurdles a business may face
can be easily overcome, relatively painlessly and inexpensively.
If you would like to discuss any of the above matters, please
telephone Glen Marshall at Landin Wilcock & Co on 0114
2754321.
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