What happens if the business owner can’t work in the business or run the business? Can you (or someone else) run it? If not, what’s going to happen?

Agency owners are very busy people. They have clients and customers to take care of, systems to build and manage, accounts payable to pay and receivable invoices to collect.

But what happens if they get sick or injured? What support and set-up do they have for their business if they get sick or injured? It’s important that agency owners have a solid plan in place for this kind of scenario.

Here is a story shared by Jodi on what happened in her business in 2021 when her business manager got seriously ill.

"Our business manager went to the hospital for chest pains and didn’t return to work properly for over 6 weeks.
During this time we realised that the role was not documented well, and it was unclear what she was doing on a day-to-day basis. Some things were easy to delegate to others and some things just slipped by until she could return. It would have been a lot smoother if the procedures were up to date and showed who did what and how.  We have now learned this lesson well and every week review procedures so that we are all working from the most current and up-to-date version of how the business runs. 

On the Money side of things, our business has a profit account - meaning every week we put money aside not to be spent on anything - and is just there for emergencies. We also have a dedicated bank account for bills, so knew that there was money available for these costs even when a team member was away.  We also have a dedicated bank account for wages, so we know how many pays we can afford before the business is affected.  The business wasn't impacted by the staff member being away, even though she was the one who sent out the quotes and liaised with clients on the work to be done, because we had money coming in from different areas and could fumble our way through this process.

Personally, I have created buffers in our household finances so that the mortgage can be paid for several months without any additional funds going to the account, and any annual bills are covered with a contribution per pay. We also have money set aside to cover an insurance excess if we need to make a claim, as well as savings we can draw on if we are unable to pay for groceries. Insurances feel like a waste of money but over the years I have seen why we need them.  Having income protection insurance to cover personal income can be a lifesaver and never having to worry about that money coming in can help with healing for a quick recovery.  The business also has some contingencies in the insurance for business interruption- so if we can’t work as a whole, then insurance can pay out.  We have money set aside for the excess in case we ever need to make a claim. Having a clear structure and reason for what happens if… can be a life saver in your business.

Coming up with worse case scenarios and having a plan now can help to reduce the stress when an event happens, which will make it easier for you, your business, your family and your staff"

There are many ways to plan for the worst, but the most important thing is that you have a plan.  Having a plan can help you to deal with difficult situations and keep your business running smoothly.  There are many things that could happen in any business, but by having a contingency plan ready it can make all the difference in how you respond.  It’s always better to be prepared rather than caught out with no idea what to do next.

If you want to chat with us about how you can set your business up to reduce stress when something goes wrong, give us a call on 08 91859400.