Here is a topic no one wants to consider but just like all life insurance sales people are trained to say “heaven forbid’ you die what happens. You have worked hard to create your company and the equity it holds. More than likely you have taken time away from your family in the process. You want to make sure that that equity and the income you provide to your family does not disappear if you get hit by the proverbial bus on the way home tonight.
Image you could sit at your desk the day after you die. What would you want to happen? Who do you want to run the company for the next few days while your family deals with your loss; your attorney, an employee, a relative? How will the employees react to your passing? They may go with your short term leader but will they follow that relative, friend or fellow employee you foresee running the company? Is the person you would wish to run your company capable of doing so? Does this person want to run a company and if so are they willing to make the sacrifices that are necessary to run a small business?
What would you tell the person sitting in your chair if you could advise them that first day after you die? Who should they call; banker, attorney, accountant, key customer, key suppliers, key customers? I suggest you make a list of who to call and what to tell them. You should also draft a suggested conversation with key employees who will naturally be concerned about their own future.
Make a list of key documents that the short term leader will need. Where are the insurance policies? Power of Attorney? Licenses? Bond? Bank account numbers? Passwords and combinations?
When you develop the plan share it with the people you expect to execute the plan and with your spouse. Even if the plan is never used the exercise might be revealing. You may learn a lot about your company. You will also know where all critical documents are when you need them.
Original Material (c) Thomas Robinson
No comments:
Post a Comment