The Risks You Can’t Afford to Ignore: Hard Lessons from Local Business Owners

If you own a business, you’re probably juggling growth, staff, cashflow and clients—all at once. It’s busy, rewarding, and sometimes overwhelming. And in the rush of daily demands, it’s easy to let planning for the unexpected slip down the list. But when things go wrong, the consequences can be swift and serious.

So what are the chances of disaster striking? According to Legal & General, 52% of small businesses would cease trading in less than a year if a key person died or became critically ill. And yet, only a minority have formal protection in place.

That’s something Chartered Financial Adviser Daren Wallbank sees regularly. Daren is co-owner of Ginkgo Financial, a local firm that helps business owners put the right financial foundations in place.

“Everything Changed Overnight”

“I had a client not long ago whose business partner died suddenly,” Daren recalls. “We’d talked before about the need for shareholder protection, and they were considering it—but hadn’t acted yet.”

There was no formal agreement in place, no cover to fund a share purchase. The surviving partner was left grieving and facing a storm of uncertainty.

“Suddenly, he was wondering: will I have to buy out the family? What if I can’t? What happens to the business?” Daren says.

Ginkgo supported him through the next steps— connecting him with a trusted solicitor to handle the legal complexities, and putting the

“She’d assumed she was doing okay because the business was successful. But she hadn’t paid herself properly.”

Ginkgo helped her structure employer contributions for efficiency, invest excess cash, and build a more secure future outside the business.

Casual Chats, Big Consequences

Many of these conversations don’t start in formal meetings. Adviser Catriona Bryden says some of the most important planning starts with a throwaway comment at a networking event.

“Through the South East London Chamber and Greenwich Connect, I hear things like, ‘I really should get that sorted’, or ‘we’d be stuffed if anything happened to me’. That’s the beginning of something important.”

Catriona says it’s not about lecturing or pressure— it’s about offering business owners space to think about their future. “People care about their staff, their families, their legacy. But they’re busy. We help them pause and plan.”

Take a Moment to Check In

right protection in place to ensure he wouldn’t be left exposed again.

“It was a horrible situation,” Daren adds. “And the hardest part is knowing it was entirely preventable.”

The Exit That Kept Slipping Away

Whilst the death of a key person is dramatic and instant, some risks are less obvious - but the impact can be just as real.

“I also work with a business owner in her 40s who thought she’d be selling up and retiring soon. Then COVID hit, the economy wobbled, and now she’s unsure if a sale will even be possible in the next five years.”

Like many founders, she was counting on her business sale to fund retirement. But when timelines shifted, it exposed a worrying lack of other assets.

“We helped her boost her pension, invest surplus profits more tax-efficiently, and rebalance her overall strategy. Now she has a decent Plan B if Plan A takes longer.”

The lesson? Don’t pin everything on a single exit moment. “A sale should be a milestone, not your whole retirement plan,” Daren adds.

When the Numbers Don’t Add Up

Adviser Rachael Childs recalls another familiar scenario. “I met a director who’d been self-employed for over a decade. She’d been putting a bit into her pension here and there, but when we added it up, she was shocked. Less than £80,000 in total.”

Her spouse—on a corporate pension scheme—was sitting on half a million. “It was a real eye-opener,” Rachael says.

If any of these stories sound familiar, it might be time to ask yourself a few questions:

• What happens if I or my co-founder can’t work?

• Do I have a proper exit plan—and a backup?

• Am I building wealth outside my business?

Because while no one can predict the future, you can take steps to protect what you’ve worked so hard to build.

Is your business prepared for the future?

As a business owner, you need to plan for the best and prepare for the worst! Our expert financial advisers can help you protect your business and secure your future.

Expert, Straight-Talking Advice

Since 2012, we’ve helped business owners navigate financial planning with clear, practical advice.

• Business Protection: Shareholder & Key Person Insurance for stability.

• Financial Growth: Strategic planning for funding, expansion & exit strategies.

• Employee Benefits: Pensions & incentives to attract top talent.