The other day I was having one of our monthly meetings with a couple of colleagues and the topic came up of having a plan in the event if any one of us were to be in a serious accident or worse yet, die unexpectedly.
No one that I know likes to think about this since part of us thinks we are going to live forever. However, it would be prudent to have a plan. One of my business consultant colleagues, Ken Keller, CEO of Strategic Advisory Boards, suggested identifying five key people who should be first on the list for any business owner to have available.
Five key individuals who should be contacted immediately include:
- Business attorney. This is someone who can provide legal guidance and ensure smooth transition of ownership or dissolution.
- Accountant. This is someone who can handle financial matters and taxes.
- Trusted mentor or advisor within your industry. This person can be depended on for valuable insights and support during a challenging time.
- Close friend or family member. This person can offer emotional support and assistance with personal affairs.
- Insurance agent. This is someone who can initiate any necessary claims and ensure financial stability for family and the business.
Establishing these connections will help navigate the complexities of your business and ease the burden on your loved ones during a difficult period of transition. to run a successful company.
Let us take a closer look at each one of these contacts specifically.
Business attorney
Your business attorney should be the first person contacted in the event of your untimely demise. They possess the legal expertise required to guide your spouse or partner through the complexities of business ownership transfer or dissolution, ensuring compliance with all legal obligations.
This person can advise on crucial matters such as transferring ownership rights, settling debts and handling any potential legal disputes that may arise, providing much-needed clarity and reassurance during a challenging time.
With their assistance, your spouse or partner can navigate the legal intricacies of our business affairs, safeguarding your interests and facilitating a smooth transition to protect both your family’s financial security and the legacy of your business.
Accountant
Upon your passing, your spouse or partner should reach out to your trusted accountant to manage the financial aspects of your business with precision and care.
This person should possess an in-depth understanding of your financial records, ensuring that taxes are filed accurately, and any outstanding financial obligations are addressed promptly.
By collaborating closely with your accountant, your spouse or partner can ensure the continued financial stability of your business, allowing them to focus on personal matters and the well-being of your family.
Consultant or mentor
In times of uncertainty following your untimely death, your spouse or partner can rely on the guidance and support of your trusted consultant or mentor to navigate the challenges ahead.
This person has been a pillar of wisdom and support throughout your entrepreneurial journey, offering valuable insights and perspective that have contributed to the success of your business.
Their mentorship will be invaluable as your spouse or partner assumes a more active role in the business, providing them with the confidence and knowledge necessary to make informed decisions and steer the company towards continued growth and prosperity.
Trusted friend or family member
Your spouse or partner should lean on the support of a trusted friend or family member during this difficult time of loss and transition.
This person can offer emotional support and practical assistance, helping to alleviate some of the burdens they may face in managing both personal affairs and the responsibilities of the business. With their unwavering support and presence, this trusted friend or family member will provide a source of comfort and strength, allowing your spouse or partner to focus on grieving and adjusting to their new role as they navigate the challenges ahead.
Insurance agent
To ensure the financial stability of your family and business, your spouse or significant other should promptly notify your insurance agent following your untimely death.
This person can assist in initiating any necessary insurance claims, including life insurance policies, to provide essential financial support to your spouse or partner and family during this challenging time.
By working closely with your insurance agent, they can secure the resources needed to maintain the continuity of your business operations and provide for your family’s long-term financial well-being, offering peace of mind during a period of profound loss and transition.
Plan ahead
Why even bother putting together this contact list? Here are three good reasons.
First, it will help you know in your own mind that you have a strategy to assist your spouse or significant other in utilizing the proper people to help with the necessary transition.
Second, it will give your business partner and employees the security of knowing that there is a plan in place to ensure a smooth transition of ownership or dissolution. Taking it a step further, it will allow you to create a solid and well-thought-out plan for your company to carry on. It will help you take action now to identify and communicate with the key people in your company who are capable of leading it in the event you had to step down or leave.
And the third reason: It will free up your energy to focus on running your business in the present, knowing that you have a strategy in place should you no longer be able or present to lead your company.
So, who are the five key people you want to put on your list? I recommend that you give this area of business development some serious thought. You, your spouse or significant other, and your leadership team and employees will feel more comfortable knowing you have a plan in place.
