Get All Access for $5/mo

This Family-Run Business is Helping Entrepreneurs Thrive in Economic Uncertainty Running a business is a rewarding experience that grows the more time and care you put into it. Some factors, however, are outside your control, and that is where your...

By Peter Daisyme

This story originally appeared on Due

Running a business is a rewarding experience that grows the more time and care you put into it. Some factors, however, are outside your control, and that is where your insurance plan comes into play. Yet, with economic turmoil potentially on the horizon, there are even some pitfalls that most traditional insurance companies will not cover. To better cover those bases, looking into the widespread coverage of an 831(b) risk assessment plan is prudent.

Supporting Self-Sustainability Through 831(b) Plans

An 831(b) plan allows private businesses to diversify funds into safety nets for extreme and unforeseen circumstances. Things that might have seemed superfluous to plan for just years ago, like pandemic coverage, are now crucially underrepresented within insurance plans for small and medium-sized businesses (SMBs). These 831(b) plans, which were once relegated to big business sectors, are now being offered to those in the SMB range through companies like SRA 831(b) Admin.

SRA's goal is primarily to inform business owners of the intent of the 831(b) tax code while driving the importance of business owners being their own Paycheck Protection Program. Coming off the heels of intense business growth since the downturn caused by COVID-19, SRA hopes to lay the foundation for businesses to continue to survive or even thrive through another pandemic-like economic disaster.

"Business leaders should not expect bailouts like PPP loans from the government the next time they are needed and should prepare accordingly," said Van Carson, founder and CEO. "An 831(b) plan not only helps businesses offset losses not covered by traditional insurance but also helps provide a safety net for the unexpected. The pandemic was a wakeup call for business owners, which is why we have seen a significant uptick in the usage of these plans since then."

Learning and Helping Others Grow through Economic Uncertainty

SRA, a family-run business based in Boise, Idaho, is no stranger to weathering the storm of economic collapse. The company was founded just a year after the catastrophic 2008 economic crisis. Carson, who was employed as an agent at Farmers Insurance at the time, was surprised to discover that among the carnage of the "08 crisis, a handful of small businesses could still press on.

After extensive digging, Carson found that the secret to riding the ebbs and flows of the economic disaster was to lean on 831(b) plans. Thus, SRA 831(b) Admin was born from a passion for helping other small businesses navigate risk mitigation and educating business owners about the benefits of these plans.

The Coronavirus Pandemic: A Wake-Up Call for Businesses

The beauty of the 831(b) plan is in its proven success. While still burgeoning, 831(b) plans have been used to great success by nearly every Fortune 500 company. This underutilized mitigation strategy is only now seeing more widespread acclaim and adoption since the pandemic. Seemingly a wake-up call for businesses across the United States, the pandemic proved that disaster can strike at a moment's notice, and it's important to be prepared.

Despite the uptick, these plans are still wildly underutilized. This is in part due to the limited guidance surrounding the usage of these plans. There could be a larger uptake of these plans in the future if Congress passes legislation requiring the IRS to provide more clarity for business owners.

Equipping Businesses to Prepare for the Unexpected

SRA's 831(b) plans are incredibly flexible and tailored to each individual business based on their needs. While preparing for the worst is important, they understand that each business has its own priorities. SRA stands to not only educate business owners on practices that they might not be privy to, but they also seek to build a plan that adheres to each specific business. To know whether a business qualifies for one of these plans, SRA has developed a simple assessment that can be found on their website to determine eligibility.

Ultimately, business owners have a duty to both themselves and their companies to expect the unexpected. In a post-pandemic world, diversifying one's planning to cover uncommon, underinsured risks has become more important than ever. The world of business ownership can be a tumultuous route, but SRA and the 831(b) risk mitigation plan is a worthwhile liferaft.

The post This Family-Run Business is Helping Entrepreneurs Thrive in Economic Uncertainty appeared first on Due.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

This 26-Year-Old's Side Hustle That 'Anybody Can Do' Grew to Earn $170,000 a Month. Here's What Happened When I Tested It.

Stephen Alvarez was working at a dental supply company and following his passion for cars on the side — then an Instagram ad changed everything.

Science & Technology

AI Marketing Secrets: 3 Game-Changing GPT-4 Use Cases to Make Money with AI

Learn how to harness AI to generate leads and increase sales, even with limited resources and a small social media following.

Business News

Over 10 Billion Passwords Have Been Exposed in the Largest Password Hack in History

The data is thought to have been collected over the past two decades.

Business News

Mark Zuckerberg Says an Upcoming Meta Product Left Testers 'Giddy'

Meta is almost ready to show this gadget to the public.

Making a Change

How I Turned My Learning Disabilities Into a Superpower

This article outlines my journey from struggling with multiple learning disabilities to recognizing my unique abilities as a strength. It explains how leveraging my personality, interests, and instincts helped me build self-confidence and achieve success as an entrepreneur and leader.