Have you built a successful business

Have you built a successful business?

Protect your businessAndy started out as a Fitter and Turner. Clever and adept with high grades. He was hard working, diligent with a happy go lucky personality. He bought the Aussie Ute for style and chic magnet value. Great guy with loads of good friends.

He was a bit impetuous, loved life and a fun guy to be around too. He and Judy met and married.

The opportunity came along and Andy jumped into a Technical Highly Skilled Surgical Instrument business with Bret his best mate. The business literally took off! It was specialised and the guys built the business on their reputations.

Judy was happy with her new dream home and Andy was ready to start a family with Judy.

Disaster struck in the ensuing months. One of the major business suppliers closed down due to mismanagement.

Anxious and worried Andy set about finding new suppliers as he had learnt and not to rely on one sole supplier.

The lights went on! Andy started to think. What would happen to his business if his best mate Bret and business partner became ill or even worse died? Worse still if something happened to Andy. How would Judy cope?

The present value of the business is $7M. After having a genuine business valuer thoroughly value the business.

The debt to the bank is $3M with personal guarantees from Andy and Bret . Andy and Judy have a huge mortgage of $850,000 and Bret has several Harley Motor Bikes on personal loans plus a Maserati and investments totalling $800,000.

Andy and Bret run the business together and trust each other’s judgement. Judy has an Accountant that she sends the weekly figures to as she has no other interest in the business.

The business has no other employees except the cleaner and yard man that comes in once a week

A fire sale would be just that. The business would be sold to a predator for not much worth. The bank would take the new home and confiscate all of Bret’s toys to cover the bank exposure and clear the debt.

Sounds like a disaster waiting to happen…………

There is business protection for all self employed and businesses out there. It costs money. There are tax rebates on parts of the cover. Can you afford not to have a sound business protection plan?