Do you want your business to live on even after you’ve passed away? You’ve worked hard to build a successful enterprise that will remain for years to come,but have you thought about what would happen to it you were to suddenly pass away? Most business owners have not considered this thought, but it’s something that needs to be on an entrepreneur’s mind.
Now is the perfect time to start taking the necessary steps to protect your business even when you’re not around to oversee its operations. The following tips will ensure that your business’ hard-earned legacyis protected even after you’re gone.
Invest in a good insurance policy
Prepare your family for the financial burden of owning a business by making sure you have a reliable life insurance and investment policy in place before you die. This will help them when it comes to continuing your operations in case you’ve taken a business loan out that they can’t afford to pay back.
It will also give them time to adjust to their new circumstances until they can earn a steady profit again. Make sure to note how much of these funds should be set aside for the business, and how much of it will be for personal use.
Clearly define your successor’s roles
Make sure your successors are aware of what their duties are in the event that they have to take over the business from you. Your current employees, business partners, and your family should be familiar with every facet of the business’ operations, and not just with their particular set of responsibilities.
Take the time to train your current crop of personnel and partners so that they’re capable of pulling double duty for multiple roles within your company’s structure. This allows for a smoother transition for everyone in the future.
Every business owner wants their business to live on long after they’re gone. You can protect the legacy you’ve worked hard for with these practical tips.
Draft a business succession plan
You’ll need to have a solid business succession plan in place that clearly communicates your intention for the business to continue long after you’re gone. Your plan should also delineate exactly how the business will evolve without you there. For example, you can state whether you want to sell your business to another business owner, sell shares to your personnel or partners, or bequeath the company to a particular family member.
Your business is an asset, so you’ll need to put in writing how and to whom you will transfer these assets. Speak with your family and your lawyer so that you can draft the best possible course of action for everyone to take after you die.
Produce a company guidebook
A company guidebook contains your business’ core values, company history, mission and vision, guidelines, and procedures. Don’t forget to include essential branding information like your brand font, brand colors, and logo, so that your future marketing materials look cohesive and well-structured.
You can also include emergency procedures and contact details of significant vendors and partners.All this information will be valuable to your successors in order for them to run the business the way you want them to, even if you aren’t there anymore.