You’ve worked hard to build your business, wearing every hat, solving every problem, and keeping everything running. Whether managing staff, serving clients, or handling sales, admin, and compliance, so much depends on you. But what happens if you’re suddenly not there?

The unexpected can strike at any time. Imagine a car accident leaves you hospitalised and unable to work. Or you suffer a stroke and can’t communicate. Or mental illness makes you unable to concentrate or make decisions. It happens without warning, and without time to prepare.

Your phone rings out. Emails go unanswered. Staff, clients, and suppliers don’t know what to do. Systems are locked behind passwords. Bills and wages go unpaid. The longer your absence, the higher the risk of permanent damage.

For sole traders and small business owners this is not a dramatic “what if” – it’s a real risk. Even businesses with a leadership team are vulnerable if there’s no clear plan and authority in place. But with the right structures and documents in place, your business doesn’t have to fall apart in your absence.

Decisions Made Ahead of Time Make All the Difference

Take a moment now to ask yourself these key questions – do you have genuinely satisfactory answers?

• If I were suddenly unavailable tomorrow, who could legally and practically step in to run the business?
• Would my staff, clients, or suppliers know what to do, or who to contact, if I disappeared from the business without warning?
• Have I clearly documented the processes that are essential to keeping the business operational?
• Am I personally protected if I am injured or become seriously ill – at work or outside of work?
• If I passed away, would my business be wound up, sold, or passed on – and is that clearly written into my Will and business documents?

11 Essentials for Emergency Business Planning

1. Your Will

• Purpose: Outlines who inherits your assets, including the business, after your death.
• Business Impact: Without a valid Will, intestacy laws decide for you, often causing delays and confusion.
• Why It Matters: Allows you to nominate who should take over, and whether the business continues, is sold, or shut down.
• Tip: Work with a solicitor to align your Will with your business structure.

2. Enduring Power of Attorney (Financial)

• Purpose: Legally appoints someone to manage financial and legal matters if you’re incapacitated.
• Business Impact: Ensures someone can access accounts, make payments, and keep operations going.
• Why It Matters: No one can legally manage your finances without this, not even your spouse.
• Tip: Choose someone who understands your business or has access to your trusted advisors.

3. Trusted Person or Business Guardian

• Purpose: Appoint someone who knows your business and can coordinate action if you’re unavailable.
• Business Impact: Provides immediate support and reduces uncertainty for staff and clients.
• Why It Matters: Even informal guidance helps keep things moving until formal decisions are made.
• Tip: Choose someone willing and capable. Brief them on your business and where key info is stored.

4. Emergency Business Management Plan

• Purpose: Provides short, clear instructions for what to do if you’re suddenly unavailable.
• Business Impact: Helps others manage the essentials – payroll, client comms, urgent tasks.
• Why It Matters: Avoids chaos and confusion when fast decisions are needed.
• Tip: Keep it to 1–2 pages. Include key contacts, passwords, and priority tasks. Review annually.

5. Documented Systems and SOPs

• Purpose: Step-by-step instructions for how key tasks are done.
• Business Impact: Others can step in to handle operations without delay or error.
• Why It Matters: Most small businesses rely on knowledge that only lives in your head.
• Tip: Start with the most important tasks. Keep it simple. Store it where it can be found quickly.

6. Business Continuity Plan (BCP)

• Purpose: Covers how to respond to major disruptions like fire, flood, tech failure or illness.
• Business Impact: Minimises downtime and protects data, systems, and service delivery.
• Why It Matters: Emergencies can hit anywhere. A BCP shows you’re prepared and professional.
• Tip: Document your biggest risks, backup options, and recovery steps. Store offsite or in the cloud.

7. Key Person Insurance

• Purpose: Pays the business if you (the key person) become seriously ill, injured, or die.
• Business Impact: Covers lost revenue, hires temporary help, or pays down debt.
• Why It Matters: Solo businesses rely heavily on one person. This buys time and stability.
• Tip: Speak to your accountant or broker to learn more.

8. Personal Injury and Income Protection Insurance

• Purpose: Replaces lost income if you can’t work due to injury or illness – whether or not it’s work-related.
• Business Impact: Keeps you afloat while recovering and avoids needing to close or borrow.
• Why It Matters: Sole traders and company directors are often not covered by WorkCover.
• Tip: Check if you’re covered by WorkCover – you may not be. Explore personal accident, income protection, or TPD insurance. Choose what suits your structure and needs.

9. Banking and Financial Access

• Purpose: Ensures someone can pay bills, wages, and manage accounts if you’re unable to.
• Business Impact: Keeps your business solvent, avoids bounced payments or frozen accounts.
• Why It Matters: If you’re the only authorised person, no one else can act unless you’ve planned for it.
• Tip: Include instructions in your Emergency Plan. Consider giving authority via Power of Attorney. Keep banking info secure but accessible.

10. ATO and ASIC Access Delegation

• Purpose: Ensures someone can meet your tax and company reporting obligations.
• Business Impact: Avoids missed lodgements, penalties, or business record issues.
• Why It Matters: Only authorised users can access ATO and ASIC systems – even your accountant.
• Tip: Use the ATO’s Relationship Authorisation Manager (RAM). Confirm your agent is linked.

11. Pre-prepared Client Communication

• Purpose: A message ready to go if you’re suddenly offline.
• Business Impact: Maintains client trust, avoids confusion, and protects your reputation.
• Why It Matters: Clients value honesty and clarity. Being prepared helps them feel safe.
• Tip: Write a short message explaining the situation and what happens next. Store it where someone can find it.

Your Next Step

Emergency planning doesn’t have to be complicated, but it does need to happen. Start with what you can do today:

• Check if you’re covered by WorkCover. If not, explore personal injury or income protection insurance.
• Talk to your solicitor about your Will, Enduring Power of Attorney, and Medical Treatment Decision Maker.
• Identify your trusted person and brief them.
• Write a basic Emergency Business Management Plan with key contacts and instructions.
• Document your most important processes and store them securely.
• Review your insurance and banking setup with your accountant or broker.

Protecting your business is protecting yourself, your clients, and the people who depend on you.