Key Person Dependency

A business risk that exists when one individual holds so much critical knowledge, relationships, or operational capability that the business would struggle or collapse without them.

Many early-stage businesses are entirely dependent on the founder. While unavoidable at first, this risk must be systematically reduced as the business grows or it will limit scalability, investment potential, and personal freedom.

A coach whose entire revenue depends on her personal delivery of sessions has high key person dependency. If she gets ill or wants a holiday, income stops. Systemising delivery through courses or team members reduces this risk.