Every business owner should have a succession plan in place. Especially with the recent COVID-19 pandemic, the business owner should rethink how they would handle an end-of-business situation (e.g., you cannot work due to disability, illness, or death.) A business owner should have an exit strategy in place and should revisit that plan every time the business evolves.
The owner needs to think about who will take over the business. Or will the business be sold? Is there a list of accounts and passwords that a successor can access? Are there up to date business documents (e.g., bylaws or operating agreement) that sets out how the business will be transferred? Are your business documents not only in order but someplace easily located?
At some point, an owner will think about retirement, or they could become disabled. Having the succession plan in place saves time when the event actually happens. The owner’s idea of how the business may continue after an event may not happen if the succession plan is not in place.
If you are a business owner and do not have a succession plan, please feel free to reach out to me. I can work with you to make sure the company’s documents, agreements, and plans are up to date if any emergency comes along.