Will Your Business Survive When You're Not There?

It’s hard to think of anyone who works harder than an entrepreneur or small business owner, but that’s easy to understand. There’s a direct correlation between the effort they expend and the success they achieve. Most become so closely linked with the management of their companies that it’s hard to imagine how the businesses would operate without them.

But in most cases, that’s going to happen someday. Whether an owner decides to retire or sell, or whether his or her health means stepping away, the business will probably continue to operate. If you’re a business owner, have you given serious thought of how your business will function if something happens to you or you choose to walk away? Every business should have plans for succession and continuation.

Continuation plans help you “bulletproof” your business by considering the factors that could unexpectedly close your doors – everything from the loss of an owner or key employee, to potential dangers such as fire, floods, terrorism or even significant utility problems.

Succession plans provide a framework for eventually turning over operations to the next owner, whether that’s your children or an outside buyer. For example, if you’re hoping that your children will take over, the plan would examine how ownership should be structured, how the transition would occur, and what skills they might need to acquire to ensure their success.

Think you’re too young to make plans like these? Think again. You could die or become incapacitated by a serious illness or accident – and where would that leave the business that you’re counting on to provide for your family’s future?

Creating succession and continuation plans isn’t an easy task, but it’s one of the most prudent steps you can take to protect your company and your family’s financial security.