Exit strategies lacking among British businesses

Nearly three-quarters of sole traders in the UK do not have a business exit strategy in place, while 2.6 million have not insured against the loss in profit or cost of replacing their "key person" against the worst. That's despite 77 per cent of sole traders who have a key person in their business admitting that their enterprise wouldn't survive the loss of that key person.

Research from the Scottish Widows Business Protection Report reveals that 73 per cent of sole traders don't have a business exit strategy in place because "they have not thought about it" or because they don't plan to intentionally leave the enterprise in the foreseeable future. A quarter of sole traders were further found to have no business protection insurance in place either.

Commenting on the report, Stephen Alambritis from the Federation of Small Businesses pointed to the swine flu outbreak as one "stark reminder" for firms about the importance of planning ahead to protect themselves from such threats.

"It is vital to consider how, if something like serious illness did strike, your business would continue to function; how you would meet your contractual obligations to clients and suppliers," he continued. "It's always better to have detailed plans in place now, rather than worrying about what to do when it's already too late."

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