Disaster Response

A Business Owner's Disaster Response Plan

Is your spouse & business prepared?

A Business Owner's Disaster Response Plan

Two things are certain in life: taxes and death. With regards to the latter, we use life insurance to provide financial support for our spouse, and a last will to document the preferred arrangements regarding children and estate.

However, if something bad happens to a small-business owner, what does this mean for the company, the employees and the surviving spouse?

Can employees and vendors be paid?

Can critical (bank, internet and other) accounts be accessed?

Does somebody have contact information for key partners (lawyers, accountants, shareholders)?

Is someone aware of the owner's business agreements and liabilities?

Is the management team able to run the business?

If these and many other issues have not been dealt with in advance, it may well result in the business having to close, with all kinds of unintended and undesirable consequences.

Business Owner's Disaster Response Plan

What To Do About This

The above described problem can be mitigated by preparing a “Business Continuity Plan”.

This can be a simple document that lists everything of importance for the relevant stakeholders to continue the business in case of permanent or temporary incapacitation of the owner. This includes information critical to running the business, but may also contain instructions not addressed in the owner’s will, business-deals-in-progress, details of life and other insurance policies, ideas for strategic moves etc.

A “Business Continuity Board” is a small team comprising shareholders, select management team members and/or external trusted advisors that is dedicated to ensuring the continuity of the business until permanent arrangements are in place.

Most owners will agree that they love their spouse and children, and that they deeply care about their employees and business partners. Preparing a Business Continuity Plan and appointing a Business Continuity Board is an effective way to turn that affection into a legacy, just in case disaster strikes.

Connect with me if you're interested!

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