How something will end isn’t something that we often think about. My business has grown “a lot” in the last year and planning for the future is something that I now have to really focus on. Most likely if you are a business owner you too either need to do this or spend some time updating what you have in place now.
One question to ask: What would happen to your business if you died tomorrow; crappy question I know but it took me thinking about this very think to get me to actually do something about it.
Buy/Sell agreements with any partners you may have; we all need to have defined expectations NOW not later. Things change as your business grows. You may have nothing when you start and frankly no one wants a part of nothing. But, once you build something others will want a part of it. Be sure you spend the time on this it, you and your partners deserve. Hire a professional to help you with it – don’t do it on your own.
Buy out insurance to insure you and ore importantly your family should something happen. Again, get professional help (attorney and insurance professional) with this. Step one; what is your business worth – really worth; how are you calculating this? Get an evaluation done so you have a baseline to start with. Step two; decide what you want for it; really. If you had to take check today and had it to your family what is that number? Step three; get a good insurance person and talk about an insurance policy that either the company will buy or your partners will buy to pay that amount for the business should something happen to you.
If you own your business these are some of the most important things you can plan for; no one wants to think about “not being round” but truth is all us will die – just a matter of when. And guess what; if you don’t plan for it your business my end up being owned and ran (most likely poorly) by people that don’t need to be running it.
My question was – If I’m not here; do I want my wife worrying with my business or do I want her taken care of and the business passing to someone else (like people in my business that will at least “like” it). Yep – my answer was easy. Now I’m doing something about it – planning for an event that I pray will never happen.