Life insurance for small business owners - whether your business survive without that key personnel?

Insurance is a financial instrument. If it is possible to reduce the risk and is affordable, an insurance policy is worth looking into go. If it does not make sense for your particular financial situation, do not bother wasting your money on insurance and seek a better return on investment.

This is the logic that determines whether the purchase of life insurance on the importance, the key mission staff makes sense or not. Without life insurance, sudden death or disability of the business is important - employee, manager, executive or partner - a disaster can affect a small to medium-sized companies. If this person is a vascular lifeblood of your business, such a tragedy could result in termination, bankruptcy or total loss of the business itself.

However, if a company is set up for this loss, as all businesses should have in one way or another, this effect does not have to stop.

What is important?

People is very important, or "key" to the success of a business. Is important in small businesses who have contact or valuable skills. The main business also may be the only administrator in charge of running operations day to day or partners in need of financial support may be the detrimental con. A major life insurance policies, one can reduce the risk of loss of income is essentially supplanting who lost potential.

Key reasons to consider for individual employees covered

Financing hiring and training replacements. It is not cost-effective to hire and train staff level regularly. Finding a suitable replacement in the short term is very important to keep operations running smoothly, but the key person insurance can reduce the pressure.

Paying your bills. If you are a small business owner, chances are your income is tied closely to the performance of your business. With cover key person loss of key personnel will not cause you to repay a home loan or your credit card.

Caring for current shareholders. Usually, the person you want to hide that the company's owner, people in line to inherit the business. With life insurance, the company should be able to buy the business owner dies.

Keep other people who are important. The company should take a hit, top executives were most likely to start looking elsewhere for work. Property loses, the company will further weaken. In order to maintain other key employees, you'll want to offer bonuses in the race to prevent them from being recruited by other corporations.

Bank to meet contingencies. To ensure the growth of your business, its success should be adapted to an individual, some bank loans and require that they are insured.

The main type of insurance

People with disabilities. It's more likely that a staff member will become disabled than to die, but there are concerns the same fiscal.

Life insurance. Insurance services are very popular because they cost less than the coverage permanent. This way, if an employee leaves the business for any reason, the policy can be canceled.

Cash value life insurance. Should be an important policy as well as business owners, cash value life insurance can protect the company in case of death as well as acting as a resource to make payment to the person retired.

Taxation

Tax treatment related to insurance policies is complicated and depends on many factors. The following information is only a general idea of what is involved and should not be taken as professional tax advice.

In general, insurance policies, insurance is not tax deductible, but if certain conditions are following the IRS, can guarantee:

Reimbursement of funds lost to your company
Hiring and training replacement staff
Funding the cost of renting temporary
Payment of debt purchased by the business due to the loss of a key person who returned
No guarantee for executive bonuses
The final word

Beginning a business is basically equivalent to taking risks and could lead to uncertain time with customers temperamental and unpredictable. You might not think about what could happen with the loss of key personnel. The good news is that the fiscal cliff can happen when you lose people who are important can be eliminated if you have insurance.

7 common errors and how to avoid

Whether you are new to e-commerce site or well established, you should be aware of the seven mistakes that will cost you money:

Make decisions - and quickly
Who will build and / or host your site? Who will process credit card orders on your site? You do not need to be able to do all these tasks on their own, but you should learn the basics so you can evaluate vendors. At least five contacts before signing a contract.

Do not care about customer service
The lack of personal contact in e-commerce transactions is often translated into an experience for your customers. You can provide customer service on the network quality by:

Send e-mail to customers when an order is received and when it was shipped. Your message should encourage customers to contact you if the product did not meet their expectations.
Answering e-mail immediately (and add a personal touch, such as the customer name).
Name your physical business address and phone number on your site.
Forgot your website with your traditional business
Do not forget to include your website address in your advertising in traditional print, press releases and other business documents, including:

Marketing materials directly (software, the point of sale packaging trade fair).
Advertising (classifieds, guide resources Yellow Pages).
Collateral material (brochures and stationery).
Neglecting test your site
You do not want customers to leave your site due to an error processing sequence. Test your site often to see what kind of experience your customers are.

Test your order form and see your page, while using a different browser.
Cancel and begin to see what happens in the client's browser and your order processing software.
Failure to prepare for success
Online business successful, a rise in interest rates. When success comes, you will face the costs of expansion if you neglect to do some planning now. Consider in advance how you will add more capacity to your site to avoid:

Jams. Consider the downside for extra bandwidth from your web hosting service to ensure that your website quickly loads no matter how many users are accessing your site.
E-Commerce in charge. Installing high-capacity hardware and e-commerce applications now can be expensive, but it can save money by delaying or eliminating the costs of expanding later.
Slow performance / errors. Have a contingency plan for the holiday season and future business growth.
Submit a customer to download Overlong Times
To keep your site fast and efficient, not to use images with large file sizes and do what you can to make your overall file size down. Not only does high-speed use of Google, such as factors for the region, but a user with a browser is outdated and / or Internet connection low can experience twice the bandwidth downloading long on a page that contains the files that are larger on them.