The unthinkable has happened. On the way home after work, a business owner was involved in a tragic accident and did not survive. The next day over at the workplace, business has come to a standstill. No one knows how to access the files that reflect the status of work in progress. No one has the authority on the company bank accounts to conduct transactions; including approving payroll that should be paid the next business day. No one seems to have the ability to place supply orders. The owner’s spouse is simultaneously trying to juggle grief with the new-found revelation they now own a business which they have zero idea how to run. Money has been exchanged yet services are not being delivered to clients. Employees may be loyal but despite their empathy for the circumstances, are unlikely to continue working for free.
While unpleasant to ponder, the reality is business owners need a Business Succession Plan in place so that their life’s work can survive life’s unthinkable situations.
What is a Business Succession Plan?
A Business Succession Plan is a thoughtful, concise and executable set of instructions that go into effect when key players of a business become unable to fulfill their duties to the business. Whether it is illness, prolonged absence, retirement, incapacity or death a business succession plan ensures it will be business as usual for your clients and employees. A good plan considers the key components in any business, (i.e. administration, finance, operations, sales and marketing) and makes sure they keep functioning. A good plan stays current over time. As your business evolves key employees will be designated to swoop in at times of transition to “keep the lights on”.
If you own a business, no matter how big or how small, make no mistake, you need a Succession Plan.
Business Law Southwest Can Help.
Whether it is the unforeseen circumstance, or the natural business flow associated with retirement and new partnerships, Business Law Southwest is ready to navigate you through even the most complex processes. Our Business Law Succession Planning Services include:
- Consultation to learn about your business
- Determination of the type of Business Succession Plan your business needs
- Recommendations of technology, system and process that are key to your unique business
- Identification of key team players needed to put a comprehensive strategy in place
- Creation of plan documents and clear instruction on how execute
- Implementation of the plan with key stakeholder and participants
- On-going monitoring of the plan; annual reviews to ensure designated people and process are still relevant