Business Continuity & Succession Planning
You have worked hard to build a successful enterprise, but you simply cannot control or predict everything that might occur in the future. Although no entrepreneur wants to imagine a time when they cannot have an active role in their business, it’s important to plan how your company will be handled in the event you become incapacitated or pass away prematurely. Furthermore, you may rely on key personnel to operate and grow your business and should consider the same regarding their role(s) from a similar perspective.
Continuity Planning. An effective business continuity plan ensures that your business matters are handled according to your wishes, in the event you become incapacitated or pass away. It can be as simple as establishing procedures for the replacement of key personnel or as complex as to ensure a funding source to replace key personnel (including yourself). The core focus of continuity planning is to keep a viable business running, in the absence of key personnel.
Succession Planning. Most entrepreneurs assume that they will eventually liquidate their business to provide for their future financial needs, but seldomly prepare their business for that eventuality. So, regardless of whether you plan to sell your business to an external party or transition ownership to a new generation of leadership. An effective succession plan will specify how you, your family, and your company will prepare for a transition in ownership.
Things to evaluate and consider:
- Buy-Sell Agreement(s)
- Key Person Life Insurance (COLI)
- Disability Insurance Plan(s)
- Employee Stock Ownership Plan (ESOP)