Whether it is starting a business, expanding or even just thinking about starting up, the last thing on anyone’s mind is the financial side of the business. Even further removed would be the assurance and insurance needed for the business. The value of insurance and assurance policies in business is impossible to comprehend. There are so many different types of assurance and insurance available to the business; it is no wonder that one can be overwhelmed when looking at these things. The act of doing a business plan is tedious, daunting and possibly tiresome.
Amber Wealth thrives on making the process understandable and as smooth as can be when dealing with the act of Business Financial Planning. It is a healthy exercise to go through and could very well mean the difference between insolvency and continuation.
Here is an overview of what Amber Wealth can assist the business owner in acquiring:
Short term InsuranceExpand this article
For example imagine a shop with stock, the delivery vehicle parked in the garage, office furniture and all electronics such as POS systems and computers were obliterated in a fire one cold winter night. This would not only have the consequence of the goods needing to be replaced but the following as well:
- salaries need to be paid
- suppliers need to be paid
- rent needs to be paid
- Fixed expenses of the business such as banking charges, tax and hp agreements need to be paid
- The business will need time to rebuild
- Once official reopening, the business needs time to build a customer base up again, thus suffering further economic loss
All this can be wrapped into a solution of short term commercial insurance.
Buy and Sell InsuranceExpand this article
How does it work?
- Each partner would take out some form of collateral like a life policy on the life of the other partner/partners which would cover mainly the events of death and disability
- The premiums will need to be paid by those taking out such a policy as to ensure the transaction becomes exempt from Estate Duty Tax.
- The policies will need to cover each shareholder for the value of their share of the business.
- The living partners will then have the opportunity to pay the estate/widow/widower/children of the deceased partner the value of the shares and continue business in a normal fashion and equally share out the portion of shares of the deceased/disabled as per the buy and sell agreement.
Key-man InsuranceExpand this article
- In the event of death, disability or illness will the business be financially impacted by loss of revenue without this said key person there?
- Will it take time to recruit a competent person to replace this said person and at what cost to the company?
- How much time and resources will it take to train the new recruit?
- How much will a recruitment agency charge to find the replacement?
- How much time will it take to recoup lost revenue?
Key-man Insurance is a life policy that will financially gear the company for an unexpected event whereby they lose the Key-man due to death, disability or illness.
Business Contingency PlansExpand this article
For example a life policy covering death and disability for the value of the loan. This will be taken out by the company and paid by the company.
Business Overheads ReplacerExpand this article
- Maintenance Costs
- Accounting Fees
- Insurance Premiums
What should happen if one of them were to fall ill or become temporarily disabled? All these costs still need to be covered, thus a Business Overheads Replacer will cover such expenses while the owner recovers. This will make good on the contribution the owner would have been making should they have not been ill or disabled.
Director Loan Account
Expand this article
In terms of death a life policy will cover the rebate to the estate, an investment will cover the selling of shares or resignation.
There will also be times that the directors will make loans from the company that will need to be paid back in the event of leaving through any such means. The same means apply toward paying the company back.
Employee BenefitsExpand this article
- Group life covering disability, death, funeral and even illness
- Medical Aid contributions
- Retirement savings through either provident or pension funds
These yield benefits to both employer and employee such as:
- Tax benefits
- Staff loyalty
- Social and moral responsibility fulfilled
- Peace of mind for employee that there will be something for retirement
Business PlanningExpand this article
A good business plan needs the following:
- Executive Summary
- Key Strengths
- Competitive Edge
- Service/Product Summary
- Marketing Plan
- Competitive Analysis
- Contingency Plan
- Market Analysis and Research
- Sales forecast
- Start up funding summary (if starting up)
- Profit and Loss
- Balance Sheet
- Past Financials (if applicable)
- Company Summary and history
- SWOT analysis
- Management Summary
- Exit Strategy (if applicable)