A business is doing well – profits are good, and employees are happy. There are a couple of people that are central to the business’ success. These key people usually include the owners and may also include non- owner employees. Then one of the key employees leave.
We’ve seen this happen – a number of times in many different businesses:
• A non-owner key person left the business and went to a competitor because the benefits and opportunities were better.
• A non-owner key person opened their own business – they saw no ownership opportunities in the business they had been working in.
• A non-owner died
• An owner became disabled and was unable to continue to work.
• An owner died.
The business just is not the same. From the outside it may manifest itself by poorer service, less inventive solutions, unhappy employees and unhappy clients because someone they had relied on is no longer available. From the inside you see customers departing, fewer new clients, lines of credit drying up or becoming more expensive, employees leaving.
There were different outcomes in each of these cases. In some cases, the business was able to survive and in certain cases even thrive. In a couple of these situations, the outcomes were troubling; the businesses struggled and did not survive.
In each of these cases, different outcomes occurred because the businesses had prepared differently.
At Coromar Business Strategies, we have special benefit program for key employees that will discourage a key person from leaving the company. We also have programs that will
prepare the business financially, in the event that the company loses a key person.
For all the business challenges we may not have control over, the loss of a key person is one you can plan for. Whether it’s providing special benefit packages to reward and retain your key people or implementing an insurance program to assure a financial cushion should a key person die or become disabled–the loss of a key person may become a manageable
concern. Contact us.
Coromar Business Strategies is a subsidiary of Coromar Group of Companies. Copyright 2017 Coromar Marketing. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.