My blog two weeks ago started talking about death – not your everyday audiology subject! Fortunately we are in a profession that only sees the coming of “the final event” in our clients, not the actual event, as do physicians and nurses. While others may leave us, we ourselves will never personally experience such an event – or so each of us would like to believe. But we will, each and every one of us, and in the case of a business owner, someone must pick up the pieces and carry on.
But first, the person who is going to do this work must know who he or she is and mental telepathy from beyond the grave probably won’t work. Your spouse is the most likely person, but someone else might be designated or at least assisting the spouse or other family member. Second, this person or persons must know where the “Carry-On” file is located and ideally, will have been given the opportunity to review it with you prior to your departure. An up-to-date file is of little use if it is kept in your safe deposit box or some other “safe” location.
This then is my list of what I believe, ideally, needs to be in the “Carry-On” file for the person who is left to pick up the pieces – to carry the ball.
- A list of all current bank accounts and their designated uses.
- A list of all current supplier accounts and primary contacts.
- A list of all time payments the business is paying on, with account numbers.
- A list of all capital equipment and outstanding balances owed thereon.
- A list or copy of all property rental agreements, insurance coverages, and other business agreements.
- Information regarding the location of your accounts receivable.
- Electronic passwords for your various Management Information Systems, bank accounts, etc.
- Information regarding your business and professional licenses.
- A list of people that are most likely to provide the help your successor will need; possible new part-time/full-time employees, friendly competitors, manufacturer contacts, accountant, attorney, banker, insurance agent(s), landlord(s), professional friends, and ex-employees that might be willing to come back for a short period of time.
- A “Power of Attorney” letter may be in order, authorizing certain persons to do certain specific duties under very strict guidelines until such time as ownership has been stabilized.
- Information telling a person where to find all of this information as well as the business operating manual.
- A general theory of how you have run the office, how you would like to see it continue to be run and who might be interested in buying the practice, and what you think it is worth (without your earning capacity).
For what it’s worth, most of this should be in your “I’m ready to sell my business” file just in case an interested buyer comes into view.
Your successor may not think that reaching out to some of your competitors for help is a good business decision, however; we are in a business where competitors are also friends and often help each other without thought of any personal gain. Some written instructions by you on who to contact will certainly be useful.
Some of these items will need to be updated frequently while others will not change for years. Other items specific to your particular situation will need to be included as you see fit. When creating this file, think about what you would like to know if you were suddenly asked to run your competitor’s business.
More on this subject next week.
