by Beks
My father is the owner and sole employee of his business. He occasionally uses contracted employees for additional help when he needs it, but generally, he is the only person who can run his company.
This setup has served him for most of my lifetime. He owns businesses, runs them, and brings home a paycheck. It has never been a problem…
Until now.
There was no contingency plan in place should anything happen to my father… like a quadruple bypass.
Fortunately, my brothers know the construction business and my sister and I know his accounting system and had open schedules to jump in to help. There has been no hiccup in his business services, only a different face showing up at the jobsites. Who knew having 7 kids would pay off eventually?
For the most part, everything worked out for dad. He’s still struggling a little physically and relying on my youngest brother to get him through the day, but at least he is getting through the day.
Here’s the question for all you ‘invincible’ small business owners out there…
Do you have a contingency plan?
If not, you better figure one out!
Beks is a full-time government employee who enjoys blogging late into the night after her four kids have gone to sleep. She’s been married to Chris, her college sweetheart, for 15 years. In 2017, after 3 long years working the Dave Ramsey Baby Steps, they paid off more than $70K and became debt free. When she’s not working or blogging, she’s exploring the great outdoors.
That is the very thing that keeps me in Corporate America… security. But in all fairness, no situation is fool proof. If I have a heart attack I will be covered for several months with disability and my job will be protected but eventually that, too, runs out. Hence the reason a good (BIG) emergency saving’s fund is so vital.
Beks!
I was just thinking about this very thing last night! 3 years ago I suffered a terrible back injury – after 2.5 years of physical therapy, massage therapy, spinal injections and multiple MRIs and xrays – I am finally back on my feet. After the thousands and thousands of dollars spent in medical treatments even with insurance I have a very good understanding now of why a contingency plan is so important.
I am not a small business owner (although I have done some freelance things) but I am the sole financial provider. I don’t have children now but hope to in a couple years so I am hoping in the next 6 months to have a fully vetted contingency plan in place should I have an unexpected medical mishap again or face a loss of employment. I still have to do some research on what I want to do and how to set it all up
As a small business owner, I have thought a lot about this as well. I purchased insurance last year for the risk of me being injured and being unable to work. Should that happen, my insurance would pay me a monthly sum as income replacement. I would have to hire on someone to replace me and what I do, and that wouldn’t come cheap. Likely the business income would not be enough to pay that person’s salary. I hope to build up some savings in the biz operating account for that very purpose.
sounds like he DID have a Plan B. 🙂
Worst case scenario my business partner could run the business. She may have to hire help with the accounting, but day to day operations, income, and bill payment would easily be maintained.
Even for folks who only have “part-time” side businesses, (like me, with my blog), it’s important to have a e-fund, and, I think, long-term disability insurance. In our situation, both my wife and I work, but we get health insurance through here job. We have disability on both of us, b/c we would need either my income, or the heath insurance from her job.
I think this is why it’s so important to have a spouse on board with the decision to start a small business before it gets too far. If one doesn’t have a spouse, perhaps building a business with a partner would be best to alleviate risk and even increase accountability/motivation?
Sorry to hear about your father.