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Owners of closely held family businesses are no strangers to risk. In many family businesses, uncommon solutions for future growth are the norm. Financial professionals should listen to, but not indulge in, the fears of family-business clients and prospects. Business owners need a plan should the rainmaker retire, become disabled or die. The owner of a professional solo practice needs a plan, too. Use life insurance tools to show how their value can be enhanced and preserved. The individual practitioner's personal and business debt creates risk. Replacing the key rainmaker creates a substantial exposure. Customers can be lost during the transition and employees can leave for a competitor. In such circumstances, key employee life insurance is good business economics.

Owners of closely held family businesses are no strangers to risk. In many family businesses, uncommon solutions for future growth are the norm.

Financial professionals should listen to, but not indulge in, the fears of family-business clients and prospects. Rather, focus on their future vision because that's what they care about.

A few questions can help the family-business owner think about future planning.

* Business owners need a plan should the rainmaker retire, become disabled or die. Questions to consider: What will happen to the business and who will run it? What will happen to the family if a default occurs? Will family members be involved in the business? Will children not involved be disinherited? What happens to the key employee, who wants a piece of the action to remain during transition? Will estate and income taxes require liquidation?

These questions create opportunities. For example, buy/sell agreements can be funded with insurance, as can the liabilities of benefit plans such as stock purchases, bonuses, deferred compensation and estate tax liquidity.

The cash flow of a business and the earning power of the owners and rainmakers can be protected with disability buy-out coverage, income replacement insurance and business overhead expense coverage.

These are just a few examples of how an adviser can help a business perform even better in the future than it is now.

* The owner of a professional solo practice needs a plan, too. Help individual practitioners recognize that they are the primary asset. If they are in jeopardy, so is their future.

Use life insurance tools to show how their value can be enhanced and preserved. For example, income replacement coverage meets the challenge of partial or total disability. There are other issues such as business overhead expense coverage, lifetime sales with an outsider, sale at death funded with insurance and using insurance to leverage gifts.

Most importantly, avoid the common insurance planning mistake where personal or trust-owned insurance is preferable to having the practice or business as policy owner and beneficiary, which can replace the loss of future income for the family when the owner dies.

* The individual practitioner's personal and business debt creates risk. Banking relationships have changed. Callable loans and the ability to handle future borrowing are in question for even the most creditworthy risks.

Low-cost life insurance can eliminate debt. Look at the calculation of interest costs, principal repayment and after-tax revenue needed to repay a loan, as compared to the insurance premium.

* Replacing the key rainmaker creates a substantial exposure. First, it takes time to become productive. Customers can be lost during the transition and employees can leave for a competitor. In such circumstances, key employee life insurance is good business economics.

Advisers can become paralyzed about cultivating new prospects, or approaching existing clients in a down market. Ironically, they have the tools needed to solve many of today's business problems, and the way to start is by asking the right questions.