In the event of a key director or employee experiencing an unfortunate demise or a severe illness, the repercussions for your business can be profound. Such circumstances may result in:
- Diminished profits
- Recall of loans
- Decreased operational capacity
- Loss of crucial clients or contacts
- Diminished practical expertise
Identifying a Key Person:
When determining the significance of an individual as a Key Person in your business, consider the following questions:
- How easily could the business replace their expertise and knowledge?
- Would the absence of this individual impact business plans, growth, profits, or expansion?
- Could the business potentially suffer a loss of customer confidence or credibility without them?
- Are there any financial arrangements contingent upon their involvement?