| BUSINESS MINUS YOU By Steve Cuno
Business Minus You
Preparing Your Company
to Carry on if You’re Temporarily
(or Permanently)Out of the Picture |
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| Dying isn’t
all it’s cracked up to be. Recently, against my express wishes, my body decided to try. I didn’t enjoy it. But thanks to the U of U hospital, family, friends and creditors pulling for me, well, here I am. I’m told my recovery was miraculous, but that’s not what this article is about. It’s about the other miracle — when I woke up, my company was still here. For, as I eased off the painkillers and set about reassembling my marbles, it began to dawn on me that I’d been out of commission for five months. Looking back, the experience led me to consider the fortuitous choices I’d made that allowed RESPONSE Prospecting & Loyalty Strategies to remain in business. And, given that there must someday come a “next time,” I also took a look at what I could have done better. From this, we’re building what we’ve dubbed the “Business Without Steve” plan. If your company lacks a “Business Without You” plan, I’d urge you to put one together right away. From experience, I can tell you that it’s much easier to do now than waiting until you’re unconscious or dead. Here are some tips you might want to consider. On the
Legal Side
Doubtless you’ve heard horror stories about estates tied up in court and pillaged by taxes. If your company is part of your estate, lack of sound planning will strangle it. To avoid that, you’ll need an estate plan that ensures, among other things, smooth transfer of ownership and decision-making authority. |
Before formalizing
a legal plan, find out the wishes of your family and associates. If you
were gone, perhaps your spouse or another family member would want to take
over the company. Maybe an employee, a group of employees or an outside
business acquaintance would be interested in ownership. Or perhaps you’ll
decide the best course is for the company to meet its obligations and gracefully
close. Ownership is just one issue. You’ll also need someone who can authorize decisions in your absence, whether awaiting your recovery or an ownership transition. Once you’ve settled upon a course, retain a skilled business attorney. Don’t try to write the documents yourself, don’t buy pre-made forms and don’t consult your-uncle-the-divorce-lawyer who is willing to help out for free. Business law and estate planning are loaded with potential pitfalls. You need an expert. On the
Management Side
Legalities alone don’t ensure successful continuation of a business. How you manage your company has a lot to do with its ability to prosper without you. As such, the following suggestions make good management practice in general, even if you plan to defy death indefinitely. Find your system. In “The E Myth,” author Michael Gerber talks about the importance of basing a business on a system that can produce without the owner’s direct involvement. While Gerber uses McDonald’s as a model — they have a system for cooking burgers nearly anyone can follow — |
even a business like RESPONSE, which relies heavily on
talent and inspiration, follows some sort of system. The trick was in
discovering and formalizing it. When we did, we found that, along with
allowing RESPONSE to grow beyond my personal capacity to produce, it actually
enhanced creativity. The other unexpected benefit was that RESPONSE was
able to keep doing great work while yours truly slept peacefully under
the influence of morphine. |
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