Asset protection for business owners

Imagine this.

You’ve build a very successful business. Each project that you undertake is worth at least $5mil. Revenue has been great and you have been taking projects one after another.

At the peak of your business, an accident happened and death occurred on the owner. A Domino effect of events start to snowball.

a) For the business, the projects are partially completed and each of them has a deadline. If it is not done by certain timeline, penalties and fines start to compound.

b) The staff are worried about their future as the “boss” who is also the key person is no longer around. The competitors who are waiting on the side begin to take advantage of this crisis.

c) Suppliers who had a good relationship with the “boss” are concerned that anything sold to the company, they might not be able to recover back their sales, especially if they ran into problems of completion of projects.

d) Family is left to deal with the overwhelming problem on the business as the “boss” has been the guarantor of all the on-going projects. And with that, the personal assets of the deceased is also stake because a lot of the assets like property are joint in nature with the spouse.

A few thoughts for the owner.

A) As a successful business owner, you should start thinking about how to protect your personal assets?

B) How do you ensure continuity of the successful business?

C) You should structure your assets appropriately to ensure the creditors and potential ones do not access what rightfully should belong to the family.

Speak with your experienced business advisor to protect your assets from risks happening at the wrong time.