Characteristics of a Well-Run Business

You think you can tell a well-run business when you walk in the door - the staff are cheerful, the premises are under control, and queries are answered quickly and efficiently. However, behind closed doors there may be a chaos of unpaid bills and unbilled accounts. Does this sound like your business? If you are just starting up, how can you ensure your business will be well-run?

There are many characteristics of a successful business; here we list some of them (the remainder will be covered in the next issue of Business Forward). Not all of them will be applicable to each business, but approximately 80% of them will apply to all businesses.

Characteristics are: Personal Capacity and Development Customer Knowledge and Service Product/Industry Knowledge Excellent Systems Excellent Analysis of Results Cash Control Stock Management Work In Progress Control Debtor Control Cost Control
Would you like to receive further details on these items to enable you to review your business operations?

Have You Reviewed Your Insurances? Recent floods, storms and power outages in various parts of New Zealand have highlighted the necessity for business operators to continually review their insurance covers to ensure that they have adequate insurance cover for the various disasters that can confront an SME. Can you afford to have a week (or more) of no business, just because of rain? Some of the issues that you need to consider include: Have you got a detailed Asset Register? You can then check that all of your assets have been included on the Insurance Schedule Are you covered for replacement cost? Do you have Loss of Profit Insurance? Do you have Sickness and Accident Insurance? If you are in a partnership or a company, have you cross-insured your partner or co-shareholders? Have you got Public Liability, Product Liability or Professional Indemnity Insurance? If you are operating as a company, have you got Directors and Officers Liability Insurance? Now is an ideal time to be conducting an annual review of your insurance covers.

9-Digit IRD and GST Numbers Reminder

A recent note to us from Inland Revenue

Between April and May this year the IRD 8-digit number range will run out and we'll begin issuing 9-digit numbers to all new customers. Our systems are ready to accept both 8 and 9-digit numbers and we've been working with all known payroll providers, banks and financial institutions to ensure their systems will also be ready.

You'll need to check the software and systems you and your clients use can also accept the extended 9-digit GST and IR numbers.

Some points to note are:

• All current 8-digit IR/GST numbers remain unchanged (12-345-678).
• Once the 8-digit number range runs out, new customers will be issued with 9-digit numbers (123-456-789).
• When you provide clients who have an 8-digit IR/GST number with advice on how to complete our forms with 9 boxes, please advise them to leave the first box blank.
• If your client has an 8-digit GST number they only need to display the current GST number. If they set up a new company or subsidiary and get a 9-digit GST number, they will need to display this.

If you have any enquiries or questions, please email us at number.extension@ird.govt.nz or go to our website.

An Important Message While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

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Issue Thirty-Four

Index Characteristics of a Well Run Business Do You Have a Risks Strategy? Have You a Plan if a Business Partner Dies?

Brought to you by Inspired Business Solutions, Chartered Accountants

Characteristics of a Well Run Business  Continued from Issue Thirty-three. In Issue 33 we noted 10 of the Characteristics of a Well Run Business. This month we conclude this segment with the remaining 10 items that comprise the 20 key characteristics of a well-run business. Not all of these characteristics will be applicable to every business, but approximately 80% are applicable to most businesses. The additional characteristics are: Excellent staff management, motivation and communication Excellent marketing expertise/the ability to assess market place opportunities Ability to change with market conditions/prices review Excellent assessment of competitors Capital base Use of professional advisors: accountant - banker - solicitor Networking Excellent planning Excellent quality control Excellent management/administration

If you were to think about your own business in these terms, which items would you underline for further consideration? Are there any which you would consider aren’t relevant to your business at all? Which would you like to analyse in a bit more detail? If there’s a shortfall in any one of these areas, they could be costing you money, or preventing your business from realising more of its potential. We can help you look at this in more detail.

Do You Have a Risks Strategy? When everything is going well, you want to just keep on going, don’t you? Very often, it isn’t until something goes wrong unexpectedly that you realise how closely it was tied to the health of your business. A realistic assessment of risk in your business can help you plan and manage risks, so that the costs are minimised. On at least an annual basis, it is important to sit down and carefully review all risks relating to your business. Try to determine strategies and policies that could be implemented in the event of a risk occurring.

Some potential risks are: Key Management – What would happen if one or more of your team were unable to continue to work in your business? Who would replace them? What effect would their departure have on your business? Have you developed a succession plan for your management personnel as well as for the ownership of the business? Do you have a written agreement relative to partnership or share purchase agreements in the event of death or permanent incapacitation of a partner or shareholder? Are there cross-insurance policies to cover this risk? Has the amount of the insurance policy been reviewed recently and adjusted if necessary based on the valuation of the business? Competitors - Have you considered the effects on your business that competitor action or a new competitor coming into your market might have? Supplier - Are you at risk if a supplier suddenly advises that they are no longer prepared to sell products or services to your business? Intellectual Property - Do you have a strategy to protect the intellectual property that your business is developing? Have team members signed confidentiality agreements and assignment of intellectual property? Do you know that intellectual property developed by a team member may not automatically be owned by your business, but you can contract with your team member to ensure that it does? Do you have contracts for any contractors that work in your business relating to confidentiality and the assignment of intellectual property eg software developer, graphical designer etc? Do you know that, unless the contractor specifically agrees to transfer the intellectual property/source code to you, the contractor owns the intellectual property and not your organisation even though you paid for the work?

Defamation/Libel - Do you have systems to prevent defamatory material leaving your organisation? Zoning - What would happen if your local council rezoned the land your premises currently occupies? Natural Disasters – Have you considered the impact on your business if a natural disaster occurred in your region, e.g. cyclones, floods, fire, tsunami Extortion - Regrettably, some business people are subject to extortion demands. Have you given any consideration to your response in such a situation? Armed Hold-ups - Unfortunately, more and more small businesses that are handling cash are being subjected to armed hold ups. Have you implemented a procedures policy advising your team what to do in such an event? Travel Rules - Do the key people in your organisation travel together? Is this advisable? What would happen to the business if an accident occurred where key personnel were seriously injured or killed?

Emails - Do you have a policy on emails? Are all incoming and outgoing emails appropriately filed? Do you periodically check on the content of emails to make sure that obscene, defamatory or other unsuitable material is not being sent from your organisation? Internal Control - Have you reviewed your business’ internal control system? Do you have a shrinkage policy? If you are a retailer, undoubtedly you will be subjected to shrinkage, both through legitimate means and theft. Have you implemented strategies for this? Legal – Are there other business risks or problems that you should discuss with your legal adviser including Wills, appointment of Enduring Power of Attorneys etc. You can purchase insurance policies to cover the business for many of these risks, for example: Key person insurance policies to give financial support in the event of the death of a key person Sickness and accident policy Buy/sell contacts for partnership or share purchase in the event of the death of a partner or shareholder General insurance policies for fire, stock cover, etc. As part of your risk management review, consider the adequacy of Loss of Profit Insurance covers including: Quantum of the ‘gross profit’ figure Period of the ‘indemnity period’ Sum cover for ‘removal of debris’ List of ‘key employees’ that the business may wish to retain If you have had an insurable event occur, did your insurance policies cover the loss to your business? Have you reviewed your consequent loss of profits insurance cover (if you don’t haven’t one, should you?) Does your business give advice? Should you have a Professional Indemnity Insurance Policy? There are many items to consider, we can assist you conduct a Risk Management Review for your business.

Be sure to read each article with the mindset “How this could apply to our business”. Thinking of it that way will guarantee that you get value. Also make copies for each team member. To really make sure something positive happens, work with your business development specialists to talk your team through ideas.

Have You a Plan if a Business Partner Dies? No one wants to dwell on what will happen in the event of a death. However, in business, the death of a business partner can have an enormous impact on continued day to day operations. Take a minute to jot down a few essentials which need to be in place for your business to continue running. Think about the steps you would take to smooth over the transition, in the event of death or sever incapacity or illness. What would happen if you or your business partner died suddenly? Planning for the death of a partner in a business must be looked at from both sides of the equation. What are the needs and expectations of the survivors in the business and the members of the deceased estate? Contingency plans for the death of a business partner can be incorporated into a Buy/Sell Agreement. A properly drafted Buy/Sell Agreement with appropriate insurance covers should ensure that there is sufficient cash to enable the deceased partner’s estate to be paid out. What you need to do is periodically update the Buy/Sell Agreement. Make sure it reflects the current value of the business and try and get insurance covers on the partners that reflect the value of their share in the business. It is very important that a commercial solicitor drafts the Buy/Sell Agreement, checks the company documentation and Wills, to ensure that, in the unfortunate event of a premature death, the business will be able to survive and the deceased partner’s estate to be paid out. As part of forward planning, business people should consider making an Enduring Power of Attorney. An Enduring Power of Attorney provides the documentation relating to the appointment of a power of attorney to be enacted if the person subsequently loses their mental powers or is incapacitated. Normally, an enduring power of attorney is made in favour of a spouse, relative or friend, and gives the power to act for you if you can no longer act for yourself. How long is it since you reviewed your Will? Indeed, do you have a Will? There is also some basic information that you should be summarising to assist in the administration of your affairs in the unfortunate event that administration is required. This would relate to trade secrets of the business and agreements reached with key suppliers that might not be fully documented. Writing down many of the business issues will assist the successor in running the business. It is very important that business people implement proper plans to ensure that, if something does happen to them, due to death or permanent incapacity, there is a structure in place that will enable the business to continue. We recommend that you consult your commercial solicitor for a review on these matters as part of an annual legal check-up.

Issue Thirty-two

Index

Value the Knowledge of Your Team
Next Steps - Create a Culture of Knowledge-sharing
Promote On-going Learning
Develop a Customer-Care Programme
Grab Attention with Themed Marketing

Brought to you by Inspired Business Solutions, Chartered Accountants

Value the Knowledge of Your Team How to measure the enormous value that people bring to an organisation is a growing conundrum for traditional accounting, and it’s getting some serious scrutiny the world over. While you can value plant and stock, the “intellectual capital” of an organisation is mostly overlooked. The intellectual capital includes all the knowledge and experiences of your staff, either learnt in formal training sessions or picked up along the way from informal discussions with colleagues. How to harness the knowledge is another problem. Knowledge is hugely powerful to an organisation and academics say the management of it – how it can be shared around and stored – is one of the biggest issues facing organisations today. So why are knowledgeable people so important to your business and what strategies can you implement to create an environment where staff feel motivated to stay, and contribute and share that knowledge?

Greatest Asset For many small and medium-sized organisations, without your staff you don’t have a business. They are the people who: Keep the business operating Hold specific knowledge about different aspects of the organisation Know your suppliers and customers intimately Continue to serve your customers well Maintain relationships Bring in new business Train new staff and pass on knowledge Bring a variety of skills, ideas and experiences to your organisation Have you ever stopped to consider the wealth of knowledge they hold? Your team is your greatest asset and your competitive advantage.

Be sure to read each article with the mindset “How this could apply to our business”. Thinking of it that way will guarantee that you get value. Also make copies for each team member. To really make sure something positive happens, work with your business development specialists to talk your team through ideas.

Employee Expectations You don’t want to lose your employees but you must also be realistic that people do move around these days, especially if they feel undervalued and unheard. You need to create an environment where people want to work for you and want to share their knowledge. You need to become an employer of choice. Some employers, though, need to reconsider what that means for their workplace. Employee expectations are changing, and with it the workplace culture. These days, and even more so in the future, you’re going to be dealing with a new type of worker – generation Y – born roughly between 1977-2002. They have high expectations of themselves and of their employers, are motivated to keep learning, are goal-oriented and want to make an immediate impact. (www.usatoday.com, 2005[1]). They expect open communication, because they grew up questioning their parents, and operate well in a structured yet informal culture, which fosters debate and creative discussion among colleagues. Create the Culture For many businesses, that’s going to mean a few changes ahead, and to make those changes, you’ll firstly need to start listening and communicating. Bringing people together to share ideas is one of the most important ways of creating a culture of open communication. Start by creating a series of forums for staff to meet with management. These may have different focal points, for example: regular meetings could be held to discuss the ‘state of play’ – both good news and bad; ways the business could improve systems; or creative thinking brainstorms to come up with a barrage of suggestions and potentially off-the-wall ideas. At each meeting, all attendees listen and communicate and everyone is given the opportunity to have their say. Remember, your way is not always the best or only option. One-on-one meetings with individual team members and their manager are also important to air personal issues in confidence, and talk about the employee’s needs. Dare to be Different To continue to compete in a competitive market, small businesses need to pool the talents of their staff and continue to be innovative. Whether large or small, any business has the potential to improve their bottom line, do something better or differently, create a new product or service or find a new market outlet. You have to keep progressing to be successful. But to achieve this your business needs to share knowledge and think creatively. From what we know about the younger generation of workers today, they demand it. Nowadays, the knowledge and the thinking cannot come from you in isolation behind your desk (although you do need uninterrupted thinking time); it has to come from everyone who works for you. It means encouraging your staff to bring their brains to their desks and not leave them at the front door. People feel valued when they can have input into decisions and change. You need to respect their ideas and suggestions. But you have to create the culture to make this happen, and it will take time. Learning through Mistakes If employees are to be encouraged to experiment with new ideas, there must also be an understanding that making mistakes is all part of the learning journey. Nobody will feel motivated to contribute their ideas if mistakes are penalised. Companies will do well if they value the collective knowledge of their team. By working together and pooling your knowledge you could become truly innovative. Sure, big companies such as Microsoft and Google have taken innovation to new heights, but small businesses here should not downplay their huge potential for new ideas. And remember, New Zealanders are renowned for their innovation! [1] Generation Y: They've arrived at work with a new attitude, http://www.usatoday.com/money/workplace/2005-11-06-gen-y_x.htm

Next Steps - Create a Culture of Knowledge-sharing Despite not being accounted for on the balance sheet, your team is hugely important to your business because they hold a wealth of knowledge. Aim to create an environment in which people feel both motivated to work, and motivated to share ideas: Create forums for open discussion – small groups, the whole team, with management Tell the team what is happening with the business, listen to what they have to say Seek their ideas and suggestions for development and change, take all ideas seriously Commit time for group problem solving, brainstorming, creative thinking – sometimes the most off-the-wall ideas are the winners Build team skills and your own through further training and/or mentoring with more experienced team members Establish other methods of communication e.g. in-house newsletter, weekly team update emails etc Keep communicating, keep listening

Promote On-going Learning As an employer you must always be thinking about the ongoing learning of your team, as well as yourself. Learning means more collective knowledge gained for your organisation, which is critical to maintaining your competitive advantage and the ongoing success of your business. But as Carl Davidson and Philip Voss point out in their book Knowledge Management[1], most learning happens informally – not solely in the domain of formal training. They say a study carried out by the Centre for Workforce Development in the US, ‘reported that up to 70 per cent of all workplace learning is informal’. It is the learning that takes place during informal discussions with colleagues or customers, in meetings and so on. They make the point that organisations should foster ‘communities of practice’ which informally gather together colleagues who work on similar tasks to discuss ideas and share knowledge. Importantly, the organisation should create a culture of ‘structured informality’ rather than ‘informal structures’. Their point is you cannot force these groups to establish and produce something – in fact any pressure will ‘defeat the whole point’, they say. The groups will evolve in a culture which values open, informal debate and creative thinking time. [1] Davidson. C, and Voss. P, Knowledge Management, 2002, Tandem Press, Auckland.

“In mature knowledge-managing organisations, managers understand that their role is to create the right environment for knowledge workers to get on with their jobs.” Davidson. C, and Voss. P, Knowledge Management, 2002, Tandem Press, Auckland

An Important Message While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Develop a Customer-Care Programme Like every part of a well-run business, you need to establish a system for caring totally for your customers. Creating a system or a customer-care programme means good service is planned, instead of happening ‘ad hoc’ or reactively. For example, a customer-care programme could include responsibilities that your business: Calls the customer a few days after their visit to check they are happy with the product or service Keeps in touch regularly with your ‘A-grade’ customers and invites them to promotional events Offers incentive vouchers when customers spend over a certain amount Offers money-back guarantees if the customer is not satisfied Commits to being on-time for service call-outs (if not on time, the customer receives a discount) Keeps customers informed about what you offer Reacts quickly and efficiently to customer complaints, and is committed to solving any problems Establishes a system for answering phone calls and taking messages Anticipates customer needs before your customers do! Smaller businesses have the advantage of knowing their customers more personally than bigger organisations. Capitalise on the personal service you can offer. By developing your relationships with your important customers, you will understand their needs and be better equipped to anticipate their demands before they do.

Grab Attention with Themed Marketing Looking to stand out from the crowd? Start thinking how you can make yourself a ‘destination’ store. People go to a convenience store when they’ve run out of something. A destination store, on the other hand, attracts customers who want to return again and again because they love the shopping experience. They’ll want the same great service, but they’ll also want the thrill of finding something different awaiting them. As well as exciting the senses – that is, creating a feast of sight, smell, sound, touch, taste – keep people wondering what you’ll do next by creating themes for your store.

Smell Summer! Imagine a travel agency decked out for a tropical holiday, complete with sand on the floor, smell of sunscreen, bright shirts, sun umbrellas and basking warm temperatures – wow. On a cold winter’s day, how could you resist taking a peep inside even if you weren’t planning a holiday? It’s bound to get you thinking about one though, especially if a packaged deal takes the hassle out of planning everything. The fresh aroma of coffee is always a winner too, but not only for cafes. Why not keep the pot percolating during the day and offer customers coffee and cake to celebrate& well anything – Christmas, business’ birthday, change of season, shortest day, return of the sunshine after weeks of rain. Have empathy with the people in your community. Everyone will appreciate your efforts to make their day a little more enjoyable by turning your shop into a destination store. Create a Buzz If you’re doing the same as everyone else, why would potential customers choose you? You’ve got to make your business famous! Be provocative; get people talking about you to their friends; create a buzz in the street. You’ve got about two seconds to grab the attention of passers-by – don’t waste it by being boring!

Issue Thirty-Four

Index Characteristics of a Well Run Business Do You Have a Risks Strategy? Have You a Plan if a Business Partner Dies?

Brought to you by Inspired Business Solutions, Chartered Accountants

Characteristics of a Well Run Business Continued from Issue Thirty-three. In Issue 33 we noted 10 of the Characteristics of a Well Run Business. This month we conclude this segment with the remaining 10 items that comprise the 20 key characteristics of a well-run business. Not all of these characteristics will be applicable to every business, but approximately 80% are applicable to most businesses. The additional characteristics are: Excellent staff management, motivation and communication Excellent marketing expertise/the ability to assess market place opportunities Ability to change with market conditions/prices review Excellent assessment of competitors Capital base Use of professional advisors: accountant - banker - solicitor Networking Excellent planning Excellent quality control Excellent management/administration

If you were to think about your own business in these terms, which items would you underline for further consideration? Are there any which you would consider aren’t relevant to your business at all? Which would you like to analyse in a bit more detail? If there’s a shortfall in any one of these areas, they could be costing you money, or preventing your business from realising more of its potential. We can help you look at this in more detail.

Do You Have a Risks Strategy? When everything is going well, you want to just keep on going, don’t you? Very often, it isn’t until something goes wrong unexpectedly that you realise how closely it was tied to the health of your business. A realistic assessment of risk in your business can help you plan and manage risks, so that the costs are minimised. On at least an annual basis, it is important to sit down and carefully review all risks relating to your business. Try to determine strategies and policies that could be implemented in the event of a risk occurring.

Some potential risks are: Key Management – What would happen if one or more of your team were unable to continue to work in your business? Who would replace them? What effect would their departure have on your business? Have you developed a succession plan for your management personnel as well as for the ownership of the business? Do you have a written agreement relative to partnership or share purchase agreements in the event of death or permanent incapacitation of a partner or shareholder? Are there cross-insurance policies to cover this risk? Has the amount of the insurance policy been reviewed recently and adjusted if necessary based on the valuation of the business? Competitors - Have you considered the effects on your business that competitor action or a new competitor coming into your market might have? Supplier - Are you at risk if a supplier suddenly advises that they are no longer prepared to sell products or services to your business? Intellectual Property - Do you have a strategy to protect the intellectual property that your business is developing? Have team members signed confidentiality agreements and assignment of intellectual property? Do you know that intellectual property developed by a team member may not automatically be owned by your business, but you can contract with your team member to ensure that it does? Do you have contracts for any contractors that work in your business relating to confidentiality and the assignment of intellectual property eg software developer, graphical designer etc? Do you know that, unless the contractor specifically agrees to transfer the intellectual property/source code to you, the contractor owns the intellectual property and not your organisation even though you paid for the work?

Defamation/Libel - Do you have systems to prevent defamatory material leaving your organisation? Zoning - What would happen if your local council rezoned the land your premises currently occupies? Natural Disasters – Have you considered the impact on your business if a natural disaster occurred in your region, e.g. cyclones, floods, fire, tsunami Extortion - Regrettably, some business people are subject to extortion demands. Have you given any consideration to your response in such a situation? Armed Hold-ups - Unfortunately, more and more small businesses that are handling cash are being subjected to armed hold ups. Have you implemented a procedures policy advising your team what to do in such an event? Travel Rules - Do the key people in your organisation travel together? Is this advisable? What would happen to the business if an accident occurred where key personnel were seriously injured or killed?

Emails - Do you have a policy on emails? Are all incoming and outgoing emails appropriately filed? Do you periodically check on the content of emails to make sure that obscene, defamatory or other unsuitable material is not being sent from your organisation? Internal Control - Have you reviewed your business’ internal control system? Do you have a shrinkage policy? If you are a retailer, undoubtedly you will be subjected to shrinkage, both through legitimate means and theft. Have you implemented strategies for this? Legal – Are there other business risks or problems that you should discuss with your legal adviser including Wills, appointment of Enduring Power of Attorneys etc. You can purchase insurance policies to cover the business for many of these risks, for example: Key person insurance policies to give financial support in the event of the death of a key person Sickness and accident policy Buy/sell contacts for partnership or share purchase in the event of the death of a partner or shareholder General insurance policies for fire, stock cover, etc. As part of your risk management review, consider the adequacy of Loss of Profit Insurance covers including: Quantum of the ‘gross profit’ figure Period of the ‘indemnity period’ Sum cover for ‘removal of debris’ List of ‘key employees’ that the business may wish to retain If you have had an insurable event occur, did your insurance policies cover the loss to your business? Have you reviewed your consequent loss of profits insurance cover (if you don’t haven’t one, should you?) Does your business give advice? Should you have a Professional Indemnity Insurance Policy? There are many items to consider, we can assist you conduct a Risk Management Review for your business.

Be sure to read each article with the mindset “How this could apply to our business”. Thinking of it that way will guarantee that you get value. Also make copies for each team member. To really make sure something positive happens, work with your business development specialists to talk your team through ideas.

Have You a Plan if a Business Partner Dies? No one wants to dwell on what will happen in the event of a death. However, in business, the death of a business partner can have an enormous impact on continued day to day operations. Take a minute to jot down a few essentials which need to be in place for your business to continue running. Think about the steps you would take to smooth over the transition, in the event of death or sever incapacity or illness. What would happen if you or your business partner died suddenly? Planning for the death of a partner in a business must be looked at from both sides of the equation. What are the needs and expectations of the survivors in the business and the members of the deceased estate? Contingency plans for the death of a business partner can be incorporated into a Buy/Sell Agreement. A properly drafted Buy/Sell Agreement with appropriate insurance covers should ensure that there is sufficient cash to enable the deceased partner’s estate to be paid out. What you need to do is periodically update the Buy/Sell Agreement. Make sure it reflects the current value of the business and try and get insurance covers on the partners that reflect the value of their share in the business. It is very important that a commercial solicitor drafts the Buy/Sell Agreement, checks the company documentation and Wills, to ensure that, in the unfortunate event of a premature death, the business will be able to survive and the deceased partner’s estate to be paid out. As part of forward planning, business people should consider making an Enduring Power of Attorney. An Enduring Power of Attorney provides the documentation relating to the appointment of a power of attorney to be enacted if the person subsequently loses their mental powers or is incapacitated. Normally, an enduring power of attorney is made in favour of a spouse, relative or friend, and gives the power to act for you if you can no longer act for yourself. How long is it since you reviewed your Will? Indeed, do you have a Will? There is also some basic information that you should be summarising to assist in the administration of your affairs in the unfortunate event that administration is required. This would relate to trade secrets of the business and agreements reached with key suppliers that might not be fully documented. Writing down many of the business issues will assist the successor in running the business. It is very important that business people implement proper plans to ensure that, if something does happen to them, due to death or permanent incapacity, there is a structure in place that will enable the business to continue. We recommend that you consult your commercial solicitor for a review on these matters as part of an annual legal check-up.