Business surgery: What if you suddenly weren’t able to run your business? asks Atkins Dellow

As a business owner, you’re used to planning for growth and success—but have you considered what would happen if you were suddenly unable to run your business if something unexpected happened to you? Without proper safeguards, your business could face operational standstill, frozen bank accounts, unpaid staff and creditors, financial strain, and legal disputes. Success can turn very quickly to disaster.

Accidents and illnesses unfortunately happen, and your business may struggle if you haven’t had the foresight to arrange a Business Lasting Power of Attorney (LPA) to cover the situation.

Without you around, bank accounts may be frozen, creditors, suppliers and staff could go unpaid, insurances invalidated, contracts fail - potentially resulting unnecessarily in the collapse of your business.

Even if you already have LPAs to cover your personal property and finance, and health and welfare, separate LPAs for business purposes are usually needed. For sole traders and small family businesses, the need for LPAs is often more acute than in larger corporate structures, where a business may more easily absorb the unexpected incapacity of an individual. Larger businesses still need plans in place.

A Business LPA will appoint your chosen attorney(s) to act on your behalf, ensuring continuity of your business should you become unable to make such decisions. You can choose to have different attorneys to cover different aspects of your business. If empowering people within your organisation, then you should consider who would be available to cover off all the duties and tasks that you currently undertake.

Business LPAs need to be drafted to dovetail with the legal framework of your business, including partnership and shareholder agreements, Articles of Association, and other contingency plans. When reviewing all these elements it’s usually worth looking at health and life insurance arrangements as well.

This is a time to review your team’s responsibilities, look at key employees or a support network who can take on decision-making roles if necessary. A clear chain of command, documented job roles, and internal policies can help prevent disruption.

“Failing to plan is planning to fail” (Benjamin Franklin).

Setting up a Business LPA, reviewing agreements, and securing financial protection can ensure business continuity and peace of mind, whatever happens.

Good advice on incapacity planning for your business can help safeguard its future.

For more information about Business LPAs, call to speak with our team on 0330 912 8338 or visit https://atkinsdellow.com/insights/business-lasting-powers-of-attorney/

Robert Dellow, Partner at Atkins Dellow