The 3-Step Health Check for Your Business: A Guide for Sole Business Owners
As a sole business owner, you are the heart and soul of your company. But have you ever stopped to consider what would happen if you were suddenly unable to make decisions due to illness or even death? Without the right safeguards in place, your hard work could be at risk - leaving your business and loved ones in limbo.
Let’s walk through a simple, practical 3-step health check to ensure your business is protected, no matter what the future holds.
Step 1: Review Your Business Structure and Key Documents
Take a moment to review your business structure and the essential documents that keep your operations running smoothly. Ask yourself:
Is your company’s constitution or trust deed up to date?
Do you have clear records of ownership and directorship?
Are all your key contracts, leases, and financial agreements accessible and current?
If you run an online business, or have a website to engage with your clients, do you have clear terms of service, privacy policy and terms of use in order?
A regular review ensures that your business runs smoothly, and you can continue to focus in what matters the most - giving your clients the best possible experience when engaging your services (and avoid potential issues down the track!).
Step 2: Identify the Gaps - Who Can Act If You Can’t?
Most sole business owners assume their family or staff can simply “step in” if they’re unable to act. Unfortunately, the law doesn’t make it that easy. Without formal authority, no one can sign documents, access bank accounts, or make decisions for your business.
Consider:
Who would make urgent decisions if you were suddenly unavailable?
Who has legal authority to pay bills, manage staff, or sign contracts?
Would your business grind to a halt while waiting for court processes or probate?
If you can’t answer these questions with confidence, you have a critical gap in your business health.
Step 3: Put a Power of Attorney in Place - Safeguard Your Future
A Company Power of Attorney is the essential tool to ensure your business can keep running if you can’t. This legal document allows you to appoint a trusted person or professional to act on behalf of your company in specific circumstances, such as incapacity or death.
With a properly drafted Company Power of Attorney, you can:
Authorise someone you trust to manage your business affairs
Avoid business paralysis and financial hardship for your family
Ensure your staff and clients are looked after, even in your absence
Why Act Now?
Too many business owners leave this vital step until it’s too late. The result? Businesses stall, families face unnecessary stress, and the value you’ve built can quickly erode.
As a law firm experienced in supporting sole business owners, we make the process simple and stress-free. We’ll review your structure, advise on the best solution, and prepare the documents you need to protect your business and enable it to thrive and grow in the years to come.
Don’t wait for a crisis. Take control today - book your business health check and let us help you put the right agreements in place.
This blog is general information only and does not constitute legal advice. For advice tailored to your circumstances, please contact our office.
