There are always lots of books, articles and blogs about ‘Health of the Business’.  But for the entrepreneur who works alone a major concern is ‘Health in the Business’.  If the entrepreneur gets sick or injured, how does the business carry on?

In an owner/operator business, income can come to a halt when they are absent.  This can be devastating to the business.  The business plan should identify this risk and how to mitigate the issue should it happen.

One way is to have an arrangement with another provider that would be willing to step in for you and you do the same for them.  Obviously there needs to be trust for this to work effectively.  You could also have a part-time or full-time employee, if you had enough business, and give them enough training so that the business would keep going during your absence.

The business could fail in a couple of ways if you are absent.  It could fail because clients will go elsewhere for your product or service and it may be difficult to bring them back.  It could also fail as there is not enough money in reserve to cover ongoing expenses.  Without a ‘fall-back’ such as a line of credit or a lender ready to help out, creditors could cause the business to fold.

There are insurance policies that can provide some relief if the owner/operator is absent due to health issues.  These are all considerations for the business plan before opening the doors.  The business plan looks at all the nuts and bolts of the venture you are launching.  Not a bad idea to have a medical checkup prior to starting the business to ensure that you are good to go as well!

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