Posted by: dagmarsands | May 24, 2016

Your Business’ Succession in Case of an Emergency

Per Manta Tip of the Day –

Planning for accidental death or disability is an uncomfortable prospect for anyone, but it’s especially important for small business owners.

Preparing for the worst can help protect you, your family and your business, so don’t wait to seek out professional guidance on issues such as insurance and inheritance. In addition, you may want to consider drafting an emergency succession plan.

“If the owner gets hit by a car, who takes over?” said tax attorney and CPA Andrew Goldberg. “Is there a short term and long terms plan? Almost no one has this in place because entrepreneurs feel invincible.”

But Goldberg stressed the importance of having an emergency plan, in addition to a long-term vision for passing on the company, as unexpected disruptions in leadership can destabilize your business.

“Your succession plan might look different if something were to happen tomorrow versus five or 10 years from now,” Goldberg said. This is especially true in cases where the owner intends to transfer the business to a younger family member or employee who needs years of training and experience before they’re ready to take the helm.

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