There is a saying that some people live by – the only two things in life that are certain are death and taxes. Both apply to business. Most business owners have the tax side of that equation more than covered, but what about the other part?

Let me ask you, if something were to happen to you today, what would happen to your business tomorrow? Most of us don’t want to think about it. We don’t like to consider our mortality and because of this, we try as hard as possible to avoid thinking about what would happen if we died. The cold, hard truth of the matter is that death is something that must be planned for, especially when you are the owner of a business. If you want to ensure the continuation of your business, you must plan for the unforeseen if your business has any hope of future success. It is selfish to do otherwise.

Proper Planning

Without proper planning, your own demise could mean the demise of your business. All of those years that you worked to build something great will be demolished into nothing if you do not plan for proper business succession. The question is, what do you need to do to ensure that your business lives on in the event of your death?

First things first, you need to make sure all of your important business information is kept in a place that is safe and accessible. Would your partners or spouse know what to do tomorrow if you were no longer around to handle the day-to-day operations of your company? These details are crucial to successful business succession.

There is a lot of work that goes into running a business and a lot of knowledge that must be shared with anyone who could possibly take over that business should the unforeseeable occur. Make sure you keep accurate and up-to-date records containing the contact details for your partners, associates and business contacts along with detailed notes explaining exactly what roles these individuals play in the operation of your business.

Today’s businesses almost always operate online, at least to some degree. URLs, login IDs and passwords must also be made available to the person who will be taking your place. If some of your business income is generated from affiliate programs, make sure that information is documented and available. Also include crucial information about bank accounts, web hosting plans and clear instructions on how the business operates on a day-to-day business.

The Most Important Question of Business Succession – Who Is In Charge?

When planning for proper business succession, you also need to make it very clear who will be running the business once you are no longer able to do so. Will your primary role be passed on to a business partner or will your spouse take over your business responsibilities? Choose very, very carefully. If you have a person in mind, are you sure, really really sure, that they are capable? The last thing you want is a struggle over who is entitled to your business operations and profits. Be very clear in your written plans as to who will be running the business in your place.

Make the Details of Your Business Succession Plan Legal

You can have every detail of your plan written down with extreme care. Every i could be dotted and every t could be crossed. The problem is, if you do not have a legal will enforcing your wishes, things could still go awry.

When planning for business succession, make sure the legalities of your business ownership is covered in a legal will. In doing so, there will be no questions (or fights) regarding who has what right to your business’s ownership.

Remember, a business is an entity in and of itself, but that entity could die with you if you do not plan properly. Keep the above advice in mind and look to the future of your business, because at some point, whether it be ten days or ten years from now, that future may not include you. Make sure that preparations are made so that your business can continue without you in such an event.