What can go wrong.
WHAT THE MAIN RISKS ARE
Illness or injury preventing work Client concentration Non-payment Equipment failure Claims arising from your work Losing a major client
WHY ILLNESS MATTERS MOST
There is no sick pay, and income stops immediately.
WHAT TO ESTABLISH
Reserves covering a period without income.
WHAT TO CONSIDER
Insurance covering inability to work, where available.
WHAT CLIENT CONCENTRATION MEANS
Depending on one client for most of your income.
WHY IT IS DANGEROUS
Losing them is losing the business, and it happens without warning.
WHAT TO MEASURE
The proportion of income from your largest client.
WHAT TO AIM FOR
No single client dominating.
WHAT TO DO
Develop others continuously, even when busy.
WHAT TO CONSIDER ABOUT LONG ENGAGEMENTS WITH ONE CLIENT
Whether the arrangement is genuinely independent work.
WHY IT MATTERS
Arrangements resembling employment may be treated as such, with consequences for both parties.
WHAT PROFESSIONAL INDEMNITY INSURANCE PROVIDES
Cover for claims arising from your work.
WHO NEEDS IT
Anyone whose work could cause a client financial loss.
WHAT TO ESTABLISH
Whether clients require it.
WHY
Larger organisations frequently do.
WHAT LIABILITY LIMITS IN YOUR TERMS PROVIDE
A cap on exposure.
WHAT TO ESTABLISH
A limit proportionate to the fee.
WHY
Unlimited liability on a modest project is a serious exposure.
WHAT TO BACK UP
Everything, continuously.
