Life insurance takes care of your family in the event of your early demise, but have you taken steps to ensure that your employees are cared for and repaid for their long years of service by ensuring that they can keep their jobs? You might accomplish this with a very big insurance policy or by setting in place a succession and transition plan that will enable the company to continue to operate in spite of your absence.
Imagine that today is your day.
There are lots of ways to go; heart attack, cancer, accident… Once they get over the initial shock, what do your employees do? Who’s in charge? Does your family know what to do with your business? Will your customers continue to do business with your company? Will suppliers still send product and give credit? Will the bank call your loans?
It’s uncomfortable to think about. On his deathbed, one person was quoted as saying, “I know that everyone dies at some point. But I always thought I might be the exception.” I suspect he articulated what a lot of us think… “It won’t happen to me!”
But just in case it does, let’s take the responsible route and make some plans. There’s absolutely no downside to doing so and putting your (business) house in order will benefit you now and everyone else later.
Suppose your son or daughter was giving your eulogy:
“Dad was a great guy. Not only did he run a good business over the years, but he also took responsibility and put plans into place to ensure that the business would continue. He took care of his family and his employees the way he had throughout his life. In fact he did such a good job ten years ago, that over the past few years the business pretty much ran itself while still providing him and Mom with an income.”
Or, they could say:
“Dad was a great guy, but…”
Which legacy would you prefer?