In an uncertain world where markets are volatile, interest rates are rising and a war is raging, it is easy to lose perspective and focus on those events over which we have no control over and cannot change.
In PPS’s annual Professional Market Survey compiled by Catalyst Research and Strategy, we gauge our members’ perceptions on several issues affecting their professions, including unemployment. The majority of the participating members agreed that the main effect was that skilled professionals could not find appropriate jobs and were emigrating. Another common trend was that professionals are over-worked due to staff shortages.
When asked about the impact of the COVID-19 pandemic on their businesses, most participants believed that business opportunities decreased and their income reduced by more than 20%. An overwhelming majority of the participating members believe South Africa should focus on economic recovery over the next 12 months.
This study resonates with many professionals and it is easy to be drawn into uncertainties about the future. However, Steve Maraboli, in his book Life, The Truth and Being Free says that “Incredible change happens in your life when you decide to take control of what you do have the power over instead of craving control over what you don’t”. So, instead of worrying about events we cannot change, let us focus on what is important and in our control. One way to do this is to focus on addressing one of our biggest concerns: How do I protect myself, my family, my business and my employees against all these variable uncertainties?
One of the easiest ways to achieve this is through business assurance. Business assurance refers to various life assurance solutions that protect the business owner against risks that might arise from the owner’s death, disability and critical illness. These factors are known as wealth altering events. They have a primary effect on the business owner and – in the case of a deceased business owner – his or her estate. However, they also have a secondary impact on the business, remaining owners and employees.
In my experience, business owners are so focused on building and expanding their businesses (and rightly so) that they are often unaware of the various risks that their personal estates and the business can face. Therefore, it is critical for each business to do a business needs analysis regularly to identify the various risks and put in place a proper risk mitigating solution to address the identified risks.
The main risks the business owner and the business can face are as follows:
Buy and sell
Credit loan
Contingent liability
Keyperson
The common thread in all the business assurance solutions is that it provides certainty and financial liquidity. Business assurance is instrumental to any succession and financial planning process.
Appropriate, tailored solutions protect your business against the inevitability of the future. In summary, it helps you control what is in your control.
Contact your trusted financial adviser today for more information on business assurance.
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Disclaimer: Kindly note that this does not constitute financial advice; the information provided is purely informational. In terms of the Financial Advisory and Intermediary Services Act an FSP should not provide advice to investors without an appropriate risk analysis and thorough examination of a client’s particular financial situation. The information, opinions and communication from the PPS Group or any of its subsidiaries, whether written, oral or implied are expressed in good faith and not intended as investment advice, neither do they constitute an offer or solicitation in any manner. Professional Provident Society Insurance Company Limited is a licensed insurer conducting life insurance business, a licensed controlling company and an authorised financial services provider.
https://www.pps.co.za/controlling-what-you-can-control