SMALL BUSINESS BOOT CAMP EPISODE 5: SUCCESSION PLANNING / SUDDEN EVENT


(light upbeat keyboard music) – Hi, and welcome to
Small Business Boot Camp. Sometimes, the value
of being ultra-prepared is just the peace of
mind that you’re covered, no matter what happens. When a small business
experiences a sudden event like the death or disability
of a owner or partner or major stockholder, it’s
a tough time for everyone. But in addition to the personal impact, there are a lotta things
that impact the business, from the immediate, like who signs contracts
and writes checks, to the long-term, like what does the future
of the business look like? Today, we’re going to share some steps your business can take now to make what’s bound to be a
difficult time a little easier. First, in the next few months, make sure someone in addition to the owner is fully aware of the key
aspects of the business. This includes everything from
knowing where the checkbook and banking records are to knowing key customers and vendors. Second, if there are multiple
owners of the business, consider some form of buy-sell agreement. Often, a relatively simple document can provide a framework
for the sale of ownership. Also, it’s important that the business owner’s
estate plan is up-to-date. With successful companies,
surviving family members are often forced into
company sale decisions just to pay estate taxes. And make sure key individuals, like family members, important employees, partners, and trusted advisors, are aware of the owner’s
wishes, thoughts, and ideas. These conversations
aren’t always the easiest, but they’re important. I hope this helps your business have a little more peace of mind. Thank you for coming to boot camp. See ya next time.

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