Get free updates - subscribe to receive INSIGHT, our quarterly magazine Subscribe

How do you measure success in a business?

Success in a business can be measured in a myriad of ways and is often heavily dependent on who runs the business, but It is likely that success will present itself in one or more of the following ways:

  • Creating something that isn’t currently offered on the market
  • Increasing profitability
  • Customer satisfaction
  • Growing the size and reach of the business
  • Providing employment to more staff
  • A director or partner
  • A top sales person
  • A highly regarded employee with significant contacts
  • The creative mind behind the business

If you’re running a business it’s important to ask yourself what would happen if somebody playing a key role were to die or become seriously ill? Would your once loyal clients look elsewhere? Would confidence in your business be impacted? Would your sales and business revenues be affected?

Any of these scenarios could result in a fall in sales or loss of profits and the remaining staff in your firm may be required to take on more work in order to compensate for the loss of a key person.

Protecting your business against such an event therefore makes sound financial sense, in order to limit the impact to the business and its profits. According to statistics from Legal & General, in their rough guide to business protection:

  • 40% of businesses would cease trading within 12 months if a business lost a key person
  • 63% of sole traders would cease to trade immediately and
  • 46% of new businesses would also cease to trade immediately

Taking out Key Person Protection is a simple solution. Simply an insurance policy which is designed to pay out a lump sum in the event that the key person insured dies during the term of the policy. This lump sum payment (called the sum assured) can be used to compensate the business and insure against the event of the impact on sales and/or profit. It could also be used to cover any of the costs incurred as a result of needing to replace the person concerned. All plans should be tailored to the needs of each business in order to create a bespoke solution.

If you are concerned about the impact a Key Person’s death may have on your business please contact me on 01900 310440 or email me


All content © 2018 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW

The value of investments and the income from them can fall as well as rise. You may get back less than you originally invested. Past performance is not a reliable indicator of future results.