The “Who’s on First?” routine made famous by Abbott and Costello remains a classic. It was designed to take a simple idea and create total confusion. The audience understood what was going on while our two comedians ran around in verbal circles.
Running around in circles and achieving less with each rotation is what can happen when a stranger or an uninvolved spouse must suddenly take over the operation of your office/business when you are critically ill or have died. That is why a “Carry On” plan needs to be in place.
Ask yourself these questions:
Does my spouse know enough to be able to run the business and produce the income she/he needs to be able to maintain a current standard of living?
Does my spouse know who to contact to get assistance in operating my business?
Do my employees have a strong enough grasp of how the business is run and commitment to it to keep it operating successfully while a new owner is found?
Does my successor know who to turn to in the professional community for advice that will not be self-serving?
Does my successor know who might be the most logical people to approach regarding selling the business?
Have I set aside enough working capital to see the office through at least the first two months, preferably six, of operation after I have gone?
Can my successor quickly access either all of the business’ bank accounts or at least the funds needed to operate for several months?
A proper “Carry-On” file should be able to answer the above questions and many others. However, even the most prepared of us is unlikely to create a file that will answer these questions to another’s complete satisfaction. Things happen – circumstances change. Realizing that no one can do everything that might assist his/her successor in keeping your business operating profitably, the question still remains, are you satisfied with what you have done? For my part, even though I did have a “Carry-On” file made up for my wife, she probably would have had a hard time finding it, and it was always a few months out of date.
Just as all of our children have copies of our wills (no point in keeping our wishes a secret) you should meet with your successor every so often to make sure that he/she knows what is going on and what has changed. I’m not trying to be morbid, but looking out for your dependants (family and employees) is one of the most important things you can do. Why not put creating a well thought out “Carry On” file at the top of your New Year’s resolution list?
PS. What I have been saying on this subject has been aimed at the business owners who read my blogs, but it can also be applied to each individual person, owner, employee, or any interested reader. As the Boy Scout’s say, “Be Prepared.”
