How to Prepare Your Business To Go On Without You

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By Amy Laine
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Prepare Your Business To Go On Without You

If you and your family depend on your business for a sole income, what happens if you are unable to work? Many say they will just work through it, but in reality in the event of death, severe disability, hospitalization, and other related experiences what would happen to your business? Even if you do make it back, you will have to deal with loss of income and business leads. The best way to prevent this is to prepare your business to run without you.

Difficulty: Moderate

Instructions

Step 1

Life insurance for on you for the business is a must if the business carries large debt (for example loans on buildings or expensive equipment) or you would like the business to be free and clears for any heirs.
Step 2

Check the signing authority on the business accounts. Accounts should never only just have one signature. This will help accounts payable and receivable continue. Use a very trusted person. Many use a wife or a child. Other options are your lawyer or CPA, because they are legally bound to protect the business assets.
Step 3

Prepare for miner daily expenses in a small absence. A company credit card should be assigned to the individual that would be in charge. It is best to have their name on it so it can be easily tracked. A separate, smaller limit can be set to this account as needed.
Step 4

Keep a log book of passwords and account names in a safe place. Yes, if not kept in a tight place this could go back to haunt you, but it is necessary to write down such information.
Step 5

Create a basic outline of the business. For instance who is you lawyer and other service provider the business use and a list of daily, weekly, and monthly chores. Go into detail in where tax records, insurance contracts, and other important records are kept. Also keep a list of contacts you have that someone might need in your place.
Step 6

Share your knowledge. Rather it is a family member, friend, or employee find someone that you feel comfortable and who is interested in learning the in's and outs of your business.
Step 7

Create a will and a revocable living trust to let others know your wishes. If a will is not made your closest relive will problem inherit the business, so it is best to let them know what you want. This will also help others continue your business in case of a long hospitalization or a sever disability.