When a person starts a business, the focus is strongly on creating that business and doing whatever it takes (within reason) to make it work. And, fair enough — there’s a lot to think about. From initial business plans to branding, marketing, budgeting, hiring staff, taxes, and so much more, a new business venture is expected to take up considerable time.
In most cases, people are pretty confident when launching a business. After all, it’s such a huge undertaking, you would have to be self-assured to go ahead with it. We commonly hear the phrase, “I never thought my business would fail”, but sadly, sometimes this is the case.
What’s more, in the excitement and stress of the launch, sometimes, little consideration is given to what will happen if the business venture doesn’t work out.
When a business venture fails, an immediate thought will be about your income, and how you’ll provide for your family whilst sheltering them from financial hardship. Keeping the family home is a particular concern.
The good news is, you can take some initial steps before the launch of your business to protect your family to some degree, without incurring a lot of costs.
If total business failure occurs, the financial pressure on the family is reduced if the non-business partner’s assets remain intact. For the businessperson as an individual, the aim is to have a go, doing everything for the business to succeed. For that same businessperson considering their family, the strategy is to not have all eggs in one basket.
Contact us to talk about this in more detail — we’d love to help you set your business up for success, as well as safeguard against the worst.