When talking to small business owners, you may discover there is an over-reliance on their business as their means of future financial security.

    In this video, Tony Wickenden discusses the impact an inability to sell can have on the financial plan, and how planners can help clients understand those risks. 

    He advises breaking down the discussion about whether a client is over-reliant on their business into four stages: discovery of their goals, discovery of over-reliance on the business, diversification and catastrophe risk assessment. 

    Diversification is all about helping the client to divert some of their profit to assets beyond the business.

    The catastrophe risk element relates to planning for the unexpected, such as critical illness and death. 

    Tony adds if life does end up derailing the financial plan, you want to have made sure you have had a conversation with your client about catastrophe risk and planned accordingly.

    For more on this, watch Tony's previous video on 'How to plan for those "what if" scenarios'

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