As a business owner, it can be easy to get caught up in the day-to-day operations of running a business and to overlook the task of business planning for the unexpected. However, it’s essential to take a step back and plan for the unexpected, including the possibility of falling ill, or passing away. While it’s not a pleasant topic to consider, having a plan in place can provide peace of mind for both you and your loved ones, as well as ensuring the continuity of your business.
Recently, I had the unfortunate experience of helping a client who had a partner pass away and it was so sad for the business and the people who were trying to keep things ticking over, while also dealing with their grief. This got me thinking about my own business and it inspired me to write this blog and to create a resource for business owners who may also need to consider this.
One of the key reasons to have a plan in place is to ensure that your business can continue operating in the event of your absence. If you were to become ill or pass away suddenly, it could leave your business in a risky position without a clear plan of action. By having a plan in place, you can ensure that someone is able to step in and manage the day-to-day operations of your business, minimising the disruption and potential loss of income.
Another important consideration is the financial impact on your family and loved ones. If you pass away unexpectedly, your family may not know how to handle your business affairs, potentially leading to confusion and financial hardship for them. Having a plan in place that outlines how your business assets will be handled, where all the important business information is kept and an overview of the subscriptions and other monthly expenses relating to your business, can help to ease the burden on your family during a very difficult time.
In addition to the financial implications, a plan can also help to ensure that your legacy is protected. By outlining your wishes for your business in the event of your absence, you can ensure that your vision and values are carried forward, rather than leaving it to chance.
Creating a plan can feel overwhelming because none of us want to think about these types of scenarios. It’s important to start by identifying key people who can step in and manage your business affairs in the event of your absence. Work with a lawyer to draft a clear and comprehensive plan that outlines your wishes for your business assets and how they should be managed. Make sure to communicate your plan to your loved ones and key stakeholders, so that everyone is aware of the plan, knows what to expect and where to find important information.
Having a plan in place for illness, or death is essential for business owners. It provides peace of mind, ensures the continuity of your business, protects your family and loved ones and helps to ensure that your legacy is protected. While it may not be an easy topic to address, taking the time to create a plan is a crucial part of being a responsible business owner.
If you are not sure where to start, I created a fillable PDF In Case of Emergency (I.C.E.) Business Template, which provides a structure for collecting your important business information, that others will need to know, in the event that you cannot continue to operate your business due to an emergency. This document can also be used as a basis for discussion with your legal professional advisor to determine how you will legally document your wishes for your business.
