You become critically ill or die. What happens to your business, your clients and your loved ones?
It’s a real tragedy! Every day, small business owners leave their businesses, their employees, their customers and loved ones with a pile of problems due to their lack of risk planning. When this happens, it’s especially sad because it’s very simple to put the prudent protection in place.
Have you ever asked yourself what would happen if you were struck with a serious illness, became disabled or died unexpectedly? If not, you must.
Chances are that when disaster strikes, one of the most valuable assets that you own (your business) is left unattended. Your beneficiaries and/or executors are left scrambling to manage the business and/or sell the business, with little or no understanding of the in’s and out’s of your business, let alone it’s value.
What about ongoing income for your family? Depending on the nature of your business, will income continue or stop? There are many sole practitioner businesses where income may stop all together and if the business is left unattended for too long, the value of the business may diminish if the doors are locked. Not to mention the risk that aggressive competitors will hone in on the opportunity to steal your clients. Lastly, an executor that is not familiar with your industry’s valuations and practices might be at a significant disadvantage when trying to find a buyer and negotiate a fair selling price for the business.
How can this unfortunately common scenario be avoided? It’s actually quite simple. You need to set up a Business Preservation Agreement with an employee or a business colleague.
A Business Preservation Agreement Simply stated, a Business Preservation Agreement is an agreement that you would set up with an employee or business colleague that would provide authority for the other party to step in and take over the business operations, to service all clients and if necessary, to ultimately buy the business in the event of your sudden illness or death.
A properly drafted Business Preservation Agreement should be stored with your last Will. This will allow your executor(s) immediate access to the important details, such as; the contact information of the successor/purchaser and the pre-defined price (valuations will be discussed in our seminar). Depending on your business, you may consider sharing this agreement with some of your important service suppliers.
What happens to your business, your clients and your loved ones?
Join us on Thursday, Feb 9th, 2017 for a Free Information Seminar on how to set-up a Business Preservation Agreement. Attendees will learn how to:
Where: WorkAway Offices – Main Floor Boardroom
900 Lady Ellen Place, Ottawa, Ontario, K1Z 5L5
When: Thursday, February 9th, 2017, 10:00am to 11:00am
Coffee and tea will be served
Speaker: Vince Valenti, CEO – WorkAway Offices
Vince is a successful entrepreneur that has operated and grown several successful companies over the past 25 years. Vince has mentored many small businesses from the start-up stage to the successful exit stage.
All attendees will receive a free sample Business Preservation Agreement to help them get started in structuring their own agreement.
Please RSVP to email@example.com