Family-owned businesses in Britain contribute billions of pounds to the UK economy every year.
They are often the bedrock of the communities they belong to, and have been in business for many generations.
The Institute for Family Business calculates that two thirds of UK businesses are family-owned – 4.8 million in total, generating over a quarter of the country’s GDP.
If you are involved with one of these firms, have you ever thought about what might happen if you were to have an accident, or become ill? It could threaten the future viability of your business if you are no longer able to run it.
There are ways you can ensure the right person steps up to run your business while you are out of action, whether that be for a temporary period or long-term. This is by having a Lasting Power of Attorney (LPA)– a practice whereby you can nominate one or more individuals to step in and take control of your family business with all the complexities it might involve.
A Power of Attorney is not just about choosing someone to control your money affairs, it means you can appoint the right person to run your business, whether that be a family member, a friend or even a trusted employee.
You can also appoint more than one person to carry out the role. They could all have skills in different areas – organisational, financial or actually doing the job. But bear in mind they would have to agree as conflicts may arise.
A Power of attorney can ensure the continued success of your business – important if you want to pass the reins to someone else in your family in the future, even if they are not ready to inherit the responsibility just yet!
In fact, a Power of Attorney for your business should be the foundation of an effective business continuity plan.
Regardless of health, all business owners should have a Lasting Power of Attorney in place to ensure that their business and family finances are fully protected.