Business Owner Who Planned Ahead: The Thompson Case

Mark Thompson: Protecting More Than Family

*Names and some details changed to protect privacy.*

Mark Thompson ran a successful plumbing business—8 employees, annual turnover of £600,000, and 15 years of reputation built one job at a time. His business was his life's work.

When his accountant suggested creating LPAs with specific business provisions, Mark almost dismissed it. "I'm 52, fit as a fiddle, and I'll work until I drop."

His accountant's response: "And if you drop at 52, what happens to your 8 employees? Your ongoing contracts? Your business?"

Mark made the appointment that week.

The Business-Specific Provisions

Mark's Property and Financial Affairs LPA wasn't a standard document. He worked with his accountant and a solicitor to include:

Business Powers

Authority to run the business day-to-day
Power to sign contracts up to £50,000
Authority to hire and dismiss staff
Power to access business bank accounts
Authority to negotiate with suppliers and customers

Specific Instructions

"Major decisions (over £50,000, new employees, new contracts over £100k) should involve consultation with my operations manager, Steve Jones"
"The business should continue trading unless circumstances make this impossible"
"Staff wages and supplier payments are priority"
"Seek professional business advice before any sale"

Choosing the Right Attorney

Mark appointed:

Primary: His wife Rachel (trusted, understood his wishes)
Business advisor: His accountant was named as a professional to consult on business matters
Replacement: His brother (businessman himself)

Three Years Later: The Accident

At 55, Mark was in a serious car accident. A month in an induced coma, then another two months in rehabilitation. Significant brain injury meant he couldn't make complex decisions for months.

The Business Continues

Because of Mark's LPA, Rachel could:

Week 1: Immediate Actions

Access business accounts
Pay staff wages (due that Friday)
Communicate with key customers
Reassure the team

Month 1: Keeping Operations Running

Sign off on pending contracts
Manage cash flow
Handle supplier negotiations
Make operational decisions with Steve's input

Months 2-3: Strategic Management

Secured a major contract (within her authority limits)
Managed a minor HR issue
Consulted accountant on tax matters
Kept the business profitable

What Would Have Happened Without the LPA

Business Account Frozen

Without authority, the bank would have restricted the account. Rachel wouldn't have been able to:

Pay the staff (8 families depending on wages)
Pay suppliers (threatening legal action by week 3)
Pay business insurance (risking coverage lapse)
Buy materials for ongoing jobs

Contracts Lost

The major contract Rachel secured? The client would have gone elsewhere. Value: £180,000 over two years.

Staff Lost

Without wages, the best employees would have found other jobs. Losing experienced plumbers Mark had trained for years.

Reputation Damaged

Unfinished jobs, unreturned calls, bounced payments—15 years of reputation destroyed in weeks.

Potential Business Failure

Realistically, without the LPA, Mark might have woken from rehabilitation to find:

His business closed
His staff unemployed
His reputation ruined
Debts from unfulfilled contracts

The Numbers

With LPA Planning

Factor

Outcome

Business status	Continued trading
Staff	All retained
Contracts	All fulfilled, major new one won
Revenue impact	Minimal (5% dip during first month)
Business value	Preserved (estimated £300,000+)
Family stress	Significant but manageable

Without LPA (Estimated)

Factor

Likely Outcome

Business status	Ceased trading
Staff	Unemployed
Contracts	Defaulted
Revenue impact	100% loss
Business value	£0 (possibly negative with debts)
Family stress	Catastrophic

Mark's Recovery

After 5 months, Mark was well enough to start making decisions again. He returned to the business he still owned, with the team he'd built, and the reputation he'd earned.

His first action? Updating his LPA to add more detailed business provisions based on what Rachel had learned.

Lessons for Business Owners

1. Standard LPAs Aren't Enough

Generic LPAs may not include business powers. You need specific provisions.

2. Choose Attorneys Carefully

Consider:

Who understands your business?
Who can make quick decisions?
Who do your staff trust?
Who can your key contacts work with?

3. Include Professional Support

Name trusted advisors (accountants, lawyers) who should be consulted.

4. Document Your Wishes

What matters to you about the business? Employees? Reputation? Growth? Exit strategy?

5. Keep It Updated

Businesses change. Review your LPA when your business situation changes.

Getting Business-Specific LPAs

At myLPA, we can help business owners create LPAs that protect their commercial interests. Our guided process asks about business ownership and can include appropriate provisions.

For complex business situations, we recommend also consulting with a solicitor who specialises in business law.

Protect Your Business →