Tag Archives: Business

Are you a Key Person?

Key-person insurance is Protection for your business

How would your organisation cope if something happened to a key person?

Unexpected events can play havoc not only with people’s lives but also with businesses.

However, business owners are often so busy they don’t stop to consider the true cost of the loss of a key employee, business partner or even themselves.  Eeeek!

The knock-on effects may include disruption to other staff, missed opportunities, delays or penalties for late delivery of projects, lost revenue, increased expenses, significant costs to find and train a suitable replacement, loan repayment and even loss of the business.  Ouch!

What is key-person insurance?

Key-person insurance protects a business’s financial position against the significant impact of a traumatic event such as the death or disablement of a key person.

A key person may be an employee, owner or an individual whose contribution to the business is significant.

This cover is not a specific kind of insurance but the application of life insurance to protect against key-person risk. It can be used with buy/sell life insurance (also known as business succession insurance) which covers the change of ownership if an owner dies or becomes incapacitated.

The benefits

Often a cash injection to an affected business may keep a bad situation from becoming worse or even catastrophic. The insurance proceeds may be used to:

  • minimise or eliminate the potential loss of revenue, sales or profits
  • help cover the often significant costs of finding or training a replacement
  • service or repay any debts that are called in
  • cover the impact of a writedown in the goodwill of the business
  • provide needed liquidity
  • help keep staff and maintain essential supplier relationships.

Are there alternatives?

A business may have other strategies to help manage their risks, including asset sales, promoting staff or reallocating workloads even temporarily, using profits, borrowing more, or drawing down existing loan facilities.

However, insurance is the only practical alternative where a business doesn’t have the capacity to cover its risks.

If you want to know more and see if it can apply to your business, why not give me a call? 07 5593 0855.

Tips to help you start your own business

Starting a new business is exciting but there’s a lot to think about and organise.

Before you even begin, you should consider how prepared you are to make difficult decisions, work long hours, face financial constraints, lose sleep, and confront failure.

Most jump in thinking about all the freedom they’ll have ‘running their own show’ but if you ask any entrepreneur, usually the opposite is true!

Research

If none of these scare you, and you have the drive to make a success of your business idea, start by talking with others who have gone down the same path and can help you figure out your next steps.

Be under no illusions, this is a complex process with many moving parts, but having a checklist will make things easier.

The Department of Industry, Innovation and Science offers a lot of help through its business.gov.au website, including a start your own business preliminary checklist.

It says you should follow these steps:

  • choose your business structure and type
  • apply for an Australian Business Number (ABN)
  • register your business name and trademark
  • protect your intellectual property
  • understand the appropriate standards and codes of practice
  • set up record- and account-keeping processes
  • register a website name
  • work out what taxes you need to register for
  • find out the registration processes and licences you need
  • consider your insurance needs
  • buy or lease business premises.

Business plan

One essential ingredient of any new business venture is to draw up a business plan, which you will need to secure any financing. It will also provide direction and help keep you on track.

Financing your idea and keeping track of where the money is going is crucial to your success, so a good accountant is essential.

Employment

If you intend to hire people, you will also need to be familiar with the relevant labour laws, superannuation rules, work health and safety obligations and tax laws. Information about pay and conditions is available from the Fair Work Ombudsman website. You will also need workers’ compensation and public liability insurance.

Here to help

With so much to think about, it’s clear that starting a business is challenging. A financial adviser may help you understand your new financial obligations and develop a financial plan tailored to you, so you may get your new business off to the right start.   We’re always happy to help, so don’t hesitate to give us a call on 07 5593 0855.

A lunch with Naomi Simson

Well another great Business Chicks event has been and gone and when a couple hundred great girls got together for a Gold Coast event, I just had to grab my sister and join in too.

So, a not-so-quiet lunch with the usual fabulous spread put on by QT Hotels had us all eagerly awaiting our guest speaker… after the incredible desserts were devoured of course!

Bombe Alaska anyone?
Bombe Alaska anyone?

Naomi Simson is often known as ‘the lady in red’ from starting the fabulous company Red Balloon, to her latest stint on Shark Tank.

Naomi

Business Chicks hosted the book launch “Live What you Love’ and I’m currently devouring all the great tips from the event and as spelled out in the book.

And as always, it’s a great time to catch up with gorgeous connections made through BC and the lovely crew themselves.  All the best to lovely Emma Isaccs too, with only three weeks to go for bub number four!!

With the bodacious Bec Bodman and awesome Ali Hill
With the bodacious Bec Bodman and awesome Ali Hill

Million Dollar Round Table Experience 2014 KL


Well, I’ve been back for a little while and am still trying to digest all the great information supplied by Keynote speakers and panelists at the MDRT Experience. @MDRtweet

The Million Dollar Round Table has two gatherings each year for professionals in life insurance and financial planning from around the globe.

Last year I was privileged to attend the annual conference in Philadelphia as a Qualifying member.  For the Experience, you don’t need to be a member and so it was a great opportunity to have my rookie team members hear from some international speakers with great ideas, sales tips and motivational stories.

I’d already stressed the importance of social media to the guys before heading off and we managed to connect with Colleen  Francis, a keynote speaker from Canada and her company Engage Selling prior to the meeting.

It was a treat to meet with her and Mike Hoffman, the ‘King of Whoo’ and self proclaimed Comic Ninja on one of the lunch breaks. 

Sanjay Tolani from the UAE kicked off the sessions by advocating that we find our Why.  Always great advice, especially in light of the re-branding journey we’re currently embarking on. From personal experience he showed that sometimes we just don’t have time on our side and we need to be the Doctors of Finances for many of our clients.  Show what we have in place and be advocates for our clients to get it right. @srtolani

Jack Uldrich was next, a futurist who proclaimed that the best way to predict the future, was to create it.  He also raised the idea of reverse mentoring where we hire someone younger and with less experience than ourselves so we can again see the world and our business or life through fresh eyes and learn from a new generation on how things are done. @jumpthecurve

The lovely Colleen Francis was next, urging us to make this our ‘best year yet!’  We have the power to affect families lives and are no longer in a sales process but partner with our clients in the buying process. Buyers engage because they have a need and we need to meet with them regularly. @EngageColleen

Bill Cates was next up on Referrals, telling us that Cold Calls are our punishment for not getting enough referrals.  He urged us to keep providing value and have a different mindset on referrals.  Ask ourselves: Do I give referrals?  Do I see asking for referrals is an extension of how I serve my clients? Have I made a decision to run my business by referrals? Am I fully committed to referrals?  Lots to consider here.  @Bill_Cates

Ryan Pinney assured us that ‘Insurance is bought by people of character who care more about someone else than their money.’ True that!  Our clients want value and we should be focused mainly on our existing clientele. @TheProAdviser

Day 2 kicked off with the huge energy supplied by Mike Hoffman, the King of Whoo and he had the whole room excited with his YouTube vid before he even walked out on stage for his own Igniting Performance.  He asked each of us if we were a one per center? Or wanted to be in that top category!   Apparently success is not genetic! We need Three things:  Learn, Adapt & Apply! Got it! @Hoffman_Mike

Sarah Kaelberra told us ‘It’s all in the questions,’ with the punchy “The more you ask, the more they tell, The more you listen, the more you sell” ringing in our ears at the end.

The band Roundabout played the breaks, all made up of MDRT members and it was great hearing how they’d all met, connected and what each had gotten out of their various years of attending MDRT conferences.

Duncan McPherson of Pareto Principals from Canada was up next and had lots to share on Practice Management, Relationship Management and how to Competitor proof your clients. @Duncan8020

Eric Feng from The Charisma Academy led another high energy talk highlighting that Life is a popularity game, where people buy people first, and quoting the popular phrase, ‘People may forget what you said or did, but never, how you made them feel’ by  Maya Angelou. @eric_feng

The entire executive committee ran through their own experiences over the years with MDRT and to wrap up Janine Shepherd, a fabulous Aussie inspired us with her story. From Olympic hopeful to waking up from a truck vs bike accident in the spinal ward, she moved us with how she found Rock Bottom was a great place to start moving on from. The clean slate headed her off in a new direction and she now flies and teaches acrobatic flights.  @janineshepherd

Aside from that, it was also great to realise I wasn’t the only Aussie girl in a room of over 5000!

So another conference wrapped, lots to reflect on and still a big year ahead…

Bali Retreat for Wealth Planning Partners

 

Well, the inaugural Wealth Planning Partners (WPP) retreat has been held, done and dusted in Canggu, Bali, Indonesia.

Bali has never been high on my list of Must See places, but I can certainly see why the Aussies have been heading there for decades! The Balinese are friendly (tho more than happy to take the tourist dollars) the beer is cold, and the weather is always warm and humid which most of us are used to.  Basing our stay in Echo Beach between the rice fields and beaches was really special and a lot was accomplished.

We kicked off our first day with a Mexican dinner which served the three of us, with drinks for under $50.  Expensive by local standards!  The following morning was a massage each and session on Social Media and why it’s so important to an adviser’s business going forward.  After lunch, one of our guest speakers, Ian, a lawyer from Brisbane dropped by and we learned about Trusts and structures used for the protection of wealth and to note when we need to recognise that our clients need to sit down and discuss further with a lawyer.

But it wasn’t all work and for Saturday we met up with some friends in Kuta, and headed to Tannah Lot in the afternoon for a sunset tour.  It’s really been commercialised, but certainly some great photo ops!  Then we hit Ubud on Sunday for the Paon Bali Cooking School.  By evening we’d had a spa treatment at Ayana Spa (formerly the Ritz Carlton) and finished off at the Rock Bar for drinks.   If you ever get a chance to go to Bali, all of these are a Must Do!

Monday, it was back to the grind and we were joined by another guest who filled us in on the Big 4 banks, where they sit in the Aussie economy and how we all fit into the grand scheme of things.  A great ‘who’s who in the zoo’ for the rookies.  Ian followed up with a second session, this time on the benefits of Key Man cover and Debt Reduction planning in Business Risk.  We found a great hotel for lunch at the suggestion of a local and loved the artifacts on display at the Hotel Tugu, apparently the life’s work and collection of a wealthy Javanese businessman, now on display for all to enjoy.

Tuesday, we all worked on our ‘WHY’ – why do we want to be planners? what can we give back to the customer? what’s so special about us? and why would you want to use WPP and it’s advisers?  Always a spot of soul searching goes on there, but great to revisit for me, and good for the guys to explore.

If the whole trip was to have us work more cohesively as a team and understand our individual roles, then the trip was a resounding success.

Learning what we can do when we play as a team has been good for us all.  I just know it’s going to be a great year for WPP!