Financial planning for successA business owner will benefit from an individual personal financial plan to identify and track progress towards financial goals. However as a business owner, you are also likely to benefit from a business financial plan as well. This plan will display your financial accounts in alignment with management accounting information allowing you to look at your statistics and see how you are performing against your objectives and gain a comparison against similar types of businesses globally.
You can download a PDF format example of a financial plan.
Income cover for key business peopleA plan to protect the income of shareholders and key people can mitigate the business’s risk by assigning the responsibility for paying the wages and salaries of key people to an insurer. This means if one of the shareholders or key people are unable to work due to sickness or accident the insurer will pay their income until they return to work. In addition they will provide support and assist with rehabilitation in order to get the person back to work sooner.
This will pay a portion of the business expenses if a key person becomes disabled and unable to work. Typically the portion of the expenses covered is the equivalent to the percentage of the revenue generated. For example, in a three-shareholder business, if one key person contributes 40% of the revenue and they become disabled, the business expenses insurance cover would pay 40% of the monthly business expenses. This can take a huge financial pressure off the company at a critical time. At Iconic Financial we have seen cases of uninsured businesses fail in events like these; with protection you can have peace of mind the business will be protected should an unforeseen event happen.