Does your business depend on you?

Many owners go into business because they want to be their own boss, doing what they do well and reaping the reward for themselves. This often leads to a business that is inextricably linked with its owner - if he stops working, the business stops.

Does this sound familiar? Well, be aware that it is a pretty risky state of affairs, for a number of reasons:

1. If you become ill or otherwise indisposed, business suffers. You might be able to deal with this over a few days perhaps, but if something happened to prevent you working long term, the business would be in serious trouble.

2. The demands on your time can quickly become overwhelming, leading to stress, ill health and a business that will ultimately suffer things begin to fall through the cracks.

3. Business cannot continue to grow if capacity is limited because of you. This is an artificial state of affairs and amounts to little more than a job in reality anyway!

4. A business that is inextricably linked with its owner has little value to potential buyers, so won’t provide much of a pension plan for you.

So, what can you do if you are in this situation?

Well, immediately take steps mitigate the risk through insurance – critical illness cover and key person insurance in particular. Private medical cover might also be advisable.

Then, begin work on extricating yourself from the business whilst maintaining your ethos and values. Firstly, go back to basics: Review and restate your vision for the business what it stands for.

Then, set about putting the right elements in place to help you to achieve this vision. Understand how the business needs to be structured and begin to build this. Understand what is required of your people and put the systems and processes in place to support them in their part in your vision. Put a plan in place to bring in the support you require to move you ever closer to that vision.

Once you have the key infrastructure in place, begin to leverage the value you have built through smart sales and marketing.

Lastly, be proud that you have built a sustainable business that remains true to your values – and take a well-earned holiday!