Let’s say you own your own business, and you are nearing the end of your career, and you want to jump off at some point to retire, but you really haven’t done anything in the way of planning your exit. And, you want to make sure that you leave the company pointed in the right direction with proper strategic planning.
“What’s to be done,” you ask yourself?
Well, as part of your estate plan you should make a business continuity plan as well to ensure your departure can be done smoothly, and so your intended objectives can still be realized even if you aren’t with the business any longer. Likewise, ensuring your wealth will help preserve your businesses objectives and your successful retirement. Without leaving a proper business continuity plan and estate plan, you risk the preservation of your intended legacy, and possibly even hurting your family in the process down the road.
How to Develop an Effect Business Continuity Plan
A business continuity plan isn’t just for the IT industry either. Making a successful business continuity plan means the difference between your business sinking or swimming when the waters get rough, so to speak. A business continuity plan will address all kinds of possible disruptions to your business, including those caused by fire, flood, a quarantine-type epidemic or a severe Internet attack. Here’s are some of the main components your business continuity plan needs to address:
- Determine How to Deal with the Loss of Financial Resources – Probably the most popular way to ensure your business stays funded, if you or a business partner unexpectedly pass away, is to get a life insurance policy that will cover any short-term operating cost coverage, if your business doesn’t have the funds to move forward. It’s also a good idea to evaluate the financial strength of your business overall, and get a life insurance plan that will sustain your business operation, if you are no longer in charge. That might include the expense of a salary for a new CEO for a few years, if necessary.
- Determine How to Deal with the Loss of Key Employees – If you pass away, there’s a chance others may want to move on to other pastures, as well. Key employees are oftentimes hard to replace. Sometimes talent will leave because they don’t think the business will make it without their former leader. That may involve developing a program to train replacements, while you are still with the business.
- Determine How to Deal with the Loss of Employees and Customers – Likewise, if a well-respected leader dies, sometimes employees and customer will feel like the business won’t make it without the well-respected leader, and look for new homes and business relationships. Sometimes when businesses lose leaders, employees will leave projects as well and contracts that cannot be fulfilled, which in many cases will sour a customer relationship. Don’t let your business be left stranded without a plan for ensuring employees are retained and projects can be completed.
Separating and Integrating Estate Planning and Continuity Planning
Just remember, the continuity planning is for your business, and the estate plan is for your family. These two efforts can be undertaken simultaneously with a team of respected and trusted Pueblo estate planning lawyers. They’ll be able to integrate your long-term business objectives with your intended wealth management mission. A tax professional can help walk you through these important strategies and steps, to ensure your business and retirement succeed.
Contact the Pueblo Estate Planning Lawyers at Gradisar, Trechter, Ripperger & Roth
Isn’t it time you addressed your estate plan and business continuity plan? If so, go with the trusted team of Pueblo Estate Planning Lawyers at Gradisar, Trechter, Ripperger & Roth, who are ready to provide you with the highest quality tax and legal consultation services available. Experienced and respected, our Pueblo estate planning lawyers have been dedicated to helping our clients draft solid estate plans and resolve their important legal issues since 1972.
To set up an appointment to learn how our superior legal team can assist you, call (719) 556- 8844or email us using the contact form on this page. From our offices based in Pueblo, we represent clients in Trinidad, La Jara, Lamar, Walsenburg, Alamosa and throughout the state of Colorado.
1“Preserving wealth, estate planning key step in exiting a business” published in August 2016.