None of us likes to think about what might happen to our businesses or our families if we were to die or become disabled. Owners who do let that thought cross their minds stay awake nights worrying about it, push the thought to the back of their minds or engage in serious business continuity planning.
Business continuity planning can protect your rights in a number of important ways. If you and your co-owner have a significant business dispute or if your co-owner:
- becomes disabled,
- leaves the company due to retirement or termination,
- declares bankruptcy,
- dies, or
Your business continuity agreement can dictate what you will pay for the departing owner’s interest. In addition, if you died or became disabled, the business continuity agreement could protect your family’s right to its share of the company. If you do not have a co-owner, there are other ways to protect your company and your family.
Most owners live to see the day they leave their companies, but some do not. The purpose of business continuity planning is to make sure that if are not there to run it, your company–and your family–will continue.