A topic which comes up periodically in the running-small-Internet-businesses community: what do you do in terms of contingency planning around a bus factor of one? The brief version of my answer, in an HN comment: https://news.ycombinator.com/item?id=21908638 … Briefer version: term life insurance.
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Replying to @patio11
I wonder what a 'technical business insurance' policy would look like. Might be a team of experts (ala X-Team) who you contract with in advance. Then in case of death (or similar) your heirs still retain ownership while the team maintains continuity. 1/3
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Over time this team winds down support, transfers ownership, or maintains the product long term depending on pre-agreed contract terms or based on potential downturn in revenue. 2/3
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This behaves like a standard insurance policy where premiums fund operations for users who need to take advantage of the contingency services. 3/3
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Replying to @fshwsprr
You probably wouldn’t structure this business as an insurance policy, because of the extreme amount of regulatory overhead. Interestingly I think you could probably use the availability of insurance to make this much more palatable for the clients.
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Example: costs $2.5k per year, budget $700 or so for a $1M key man policy with the consultancy as the beneficiary, agree contractually to $1M in professional fees for contingency execution services.
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The $2.5k there basically pays for administrative expenses and an annual “Anything to add to your In Case Stuff Happens?” conversation and the consultancy makes all the money off of those few customers who actually need services.
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(This would make a lot of sense as a sideline option for a law firm or accountancy which did a lot of business with the target class of entrepreneur.)
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