Running your own business is an exciting adventure. But for many business owners or sole traders, the idea of taking a sick day just isn’t in their vocabulary.
There are many benefits to owning your own business. You have full control over what you do, how you do it and who you work with. There’s flexible hours and freedom to express yourself in a way not usually possible while working for someone else. And of course, there’s more financial control.
But there are some pitfalls too. One of which is what happens if you get sick? As a small business owner or contractor, where your ability to make money relies on your ability to work, getting sick or injured may mean losing a chunk of, if not your whole, revenue stream.
There are a multitude of expenses you need to consider as a business owner. So it’s understandable that you want to keep your costs lean. But where can you cut down and where can you splurge?
You may not be able to do everything yourself. It can be a good idea to assess what you can do and what you need to outsource. For cafes, for example, you cannot be the chef, the barista and the serving staff. You can, however, be one of those things to keep costs down.
If you have employees, embrace them. A good business owner creates a business that can’t function without them
In terms of other costs, you might need to factor in things like equipment, rental space, inventory, marketing and supplies. All of these are running costs that need to be covered on an ongoing basis. There’s also paying your staff, utilities, insurance and taxes.
What small business owners and self-employed individuals need to remember is that things happen. A sick-day, injury and even a major illness can strike anyone and it can stand in the way of your ability to get your job done.
So what can you do to help to ensure you’re prepared?
- If you have employees, embrace them. A good business owner creates a business that can’t function without them. Ensure there is always at least one other person at your workplace who can do your job if you’re out of action.
- If you’re a sole trader, it can be a good idea to have a contingency plan in place. Perhaps you know some other sole traders who can help while you’re out of action. For example, if you need to let clients know that you won’t be able to meet their deadline for their graphic design work, but that you can hand it over to someone you know and trust, they’ll be much more receptive than if you simply leave them in the lurch.
- Embrace technology. By having digital files of everything or a digital footprint, it will be much easier to brief others when necessary.
- Research what insurance options are available. Insurances such as income protection can help cover some of your income if you are injured or seriously ill and cannot work. Income protection can help cover your household expenses and as a sole trader or business owner, may also help cover any expenses necessary to keep your business running.
Learn about the benefits of income protection and get a quick quote today.