One of the most misunderstood principles of business deals with the one or few individuals in a small business operation who are critical to operations. This individual is referred to as the Key Man. The best example is that of the primary wage earner in the family unit.
Cascading effect is a business concept describing the possible outcomes from a single variation. An example includes the sudden departure of a Key Man in the company. Does this creates continuing problems such as revenue reduction, expense increases, employment issues and ultimately a reduction in profit? Can this one variable change put you out of business?