Risk. No one really likes talking about it - except accountants like Paul Talkington (Director & Family Wealth Protection Strategist at FPSS Advisory). Paul will find small business risks even where you don’t think it exists. 

And truthfully, risk is everywhere. Because as the famous saying goes: Everyone has a plan until they are punched in the face.

Risk management for small business owners isn’t a glamorous topic, but an important one. 

The reality of small business: risk 

In business, just like in life, things rarely go exactly as planned. 

You might have an airtight strategy, ample resources, and a clear vision - but what if something goes wrong? That’s where risk management comes in.

We insure our cars because the finance company requires it. 

We insure our homes because the bank insists on it. 

Some of us even have life insurance or income protection to safeguard against unforeseen events. 

Yet, when it comes to business and personal wealth, many people don’t put the same safeguards in place.

Think of insurance as paying a small amount today to avoid financial disaster tomorrow. Private health insurance, life insurance, and even business protection measures all follow this principle. 

The cost of inaction can be far greater than the price of preparation.

Business and Asset Protection

In business, risk comes in many forms. Here are just a few examples:

• Personal Guarantees: Many business owners sign personal guarantees for leases, supplier contracts, or loans - without realising the long-term consequences if things go wrong.

• ATO Liabilities: The Australian Taxation Office (ATO) is increasingly holding directors personally liable for company debts. This means that even if your business is a separate entity, your personal assets could still be at risk. Are your company BAS lodgements up-to-date?

• Litigation Risks: Australia is one of the most litigious countries in the world after the U.S. “No win, no fee” lawyers are on the increase in many areas of legal practice, taking on cases from business disputes to estate challenges.

Final Thoughts 

Risk management isn’t about being paranoid - it’s about being prepared. The key is understanding which risks apply to you and putting the right structures in place to protect yourself. Maybe nine out of ten risks don’t apply to your situation, but the one that does could be critical.

So, what’s your risk exposure? Have you thought about:

• Asset protection strategies for your family home and investments?

• Structuring your business to minimise personal liability?

• Ensuring your wealth is protected from unexpected legal claims?

If you haven’t considered these questions before, now is the time. Because in business, as in life, it’s not just about making money - it’s about keeping it safe.

Want to explore your options? Let’s chat.

Disclaimer: This is general advice. You will need to take specialist advice that takes account of your own personal circumstances.