More and more of us are setting up on our own. Whether you have a small business, or you work as a freelancer, it can be very freeing to work for yourself. You are in control of the hours you work and the environment you have to work in. Best of all, you get to keep all the earnings from your hard work. It’s your reward for a job well done.
Unfortunately, it also puts enormous pressure on you. Nobody is going to give you work. Nobody will pay you while you are on holiday. You have to manage your own accounts and tax returns. And you have to work if you want money. If you find yourself unable to work, there is no employer to manage your sick pay.
All sorts of things can act as a barrier to us working. You may become ill. Without the right insurance in place, your income will immediately dry up. And without any staff to keep doing your work for you, your business will quickly fail. If a member of your family becomes ill and you need to become a full time carer, you may still find yourself in the same boat. It’s important those you provide for have the right cover. And it’s essential you do too.
Even bad weather can cause problems for some businesses. If you are reliant on good weather for your trade but the storms just won’t quit, how will that impact on your business and your income? Having a backup plan, or a second source of reliable income is essential for most people who are self-employed. You might start an online shop, or even try your hand at teaching.
If you were involved in an accident that left you injured, chances are you would need at least some time off work. There is a limit to what insurance policies may offer you in these cases. This is especially true if you suffer a loss of earnings or income for the accident when you are self-employed. You may need to utilize a Personal Injury Lawyer to claim what is lost on your behalf. This saves you the additional stress involved so you can concentrate on getting back on your feet.
Even those of us with a small business that employs staff can suffer enormously if we’re unable to work. Many small businesses have a key man dependency on the owner. That means nobody else can step in his shoes and do what he does. The business can no longer operate in the same way as before. You can reduce this dependency on you by training your staff, or hiring others with the same skillset. This means your business can continue to operate and service its customers.
Try running a few scenarios through your head that might occur. If your business can survive them, then it may be in a good place. However, it’s worth considering this thought process every year to keep on top of any emergency situations that may arise. Protect your business and income with forward planning.