Where do I start ?
'I don't have a contingency plan for my business.'
My Business is important to me and my family. It may be similarly important to a group of employees, business associates or related businesses...perhaps others.
The quick answer here is to recognize that 'my Business' is an Asset. It is only segregated here because of its' significance as an Asset. Understanding that the business is simply a component in the Asset big picture it becomes apparent that the starting place is with 'me' in the middle...building the big picture from all the integral pieces.
Perhaps a trip back to ' What is Next? ' will help shape the picture.
OK....shape the rest of the picture...
In preparing the personal pieces of the puzzle we will eventually need to address the business component.
Those of us that have owned and operated small businesses (generally any where from 1 or 2 employees to perhaps 50, occasionally more) have so very ofter been so busy 'running the business' that we may not have done some basic contingency planning, let alone a viable succession plan.
As with the immediate personal side of the Asset picture we must first determine where we are before we can determine where we ultimately need to be going.
A sampling of questions usually include:
* Do I have a Master Plan complete with Exit Strategy?
* Do I have Disability, Disaster and essential Insurances and protections in place? Does that include Business Interruption considerations?
* Do I have a current and accurate, well documented inventory?
* Do I have the right people on hand (in the business) or in the wings (family and, or associates) that could step in, in the event of an incapacitation or perhaps extended vacation?
* Would my family want to continue the business in my absence?
* Does the business have any market value in my absence?
* Are there tax advantages in selling it or transferring ownership now? next year? 10 Years from now?
* Do I know how to measure the value? Do I have the experts on my team who can help make these decisions or at least point out the most effective way to plan and move forward?
* Should I rely on the one specific Expert to help make the 'right' decisions or should it be a team effort?
* In reality my Experts are excellent at their tasks individually but am I the right person to point out all the options I may need to have 'them' consider?
As we travel this journey called life we encounter the unpredicted every day. We do have the ability to plan for many of these eventualities so the constant reminder you'll find on these pages is: Procrastinate Tomorrow !
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Sunday
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ASSETS
Just what is an Asset?
When it comes to Business there may be more than immediately come to mind.
Asset #1 is me. That's a constant.
Inventory? ......Count and document...1, 2, 3...
...........................Market Value? Replacement Value?
Equipment?......Count and document...4, 5, 6...
...........................Market Value? Replacement Value?
Investments?...Count and document...7, 8, 9...
...........................Market Value? Replacement Value?
People? ............Access and evaluate...10, 11, 12...
..........................Key importance to continuity of business?
..........................Contracted? Loyalty? Family?
Business Appraisal? Evaluate...1, 2, 3...
....................................Count the tangibles?
....................................Count the intangibles?
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SECURITY
No doubt...Security is closely related to Assurance. so...
Why Security?
Security delves into the mechanics of protecting the Asset, the Business.
It may include anything from the locks on the doors to the financial institutions that are integral to the business success.
Occasionally it is a function of size. The smaller the Business the bigger the effect of a key person not being available.
What happens on the Hatchery Farm operation if the key family members (the key operators) are severely incapacitated or worse in a traffic accident?
Who milks the Cows?
Who tends the crops? Who harvests them?
What happens if the shop burns to the ground?
What happens if a key person is no longer available?
What happens if a car crashes through the front doors and effectively shut business down for an extended period?
When we have put the proper security systems in place we can often change the dynamics of a situation from a total disaster to an inconvenient interruption.
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KNOWLEDGE
Knowledge is strength!
It has been mentioned before but bears repeating.
I know what I know!
I know what I don't know.
.................but I don't know what I don't know.
The resources available on these pages may help resolve that lack of understanding or, at the least, point out why it may be well advised to investigate these concerns further.
The pay off may be simply found in the security of the knowledge that it has been thoroughly and professionally checked and self-assurance has been achieved.
Knowledge is strength!
...it's assurance...it's security!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~