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Life-changing, triggering events occur suddenly when least expected. Being prepared is key to protecting the survival of your business.

Take the case of Bob Stone.

An accidental fall in his office resulted in a lengthy coma. Prior to the fall he had felt invincible. Stone intended to operate the business for another fifteen years before giving it to one of his younger children or selling it. His family was solely dependent on the company for income and benefits.

Stone regained consciousness ten months later and found everything concerning the business had been going great considering the slowing economic climate. Hard decisions reducing the number of employees and scaling back the company had just been completed prior to the accident. Critical decisions remained that would determine the business’s survival.

His fall set into motion a contingency plan that included a Durable Power of Attorney and Operating Plan. Stone and his wife Elaine had developed the plan with the aid of a business-experienced planner who emphasized the importance of including the operations plan just in case something happened to him.

Elaine had worked with Bob building the company for fifteen years before retiring to raise their family. He frequently updated her as to the status of the business. She was aware of the company’s fifteen employees’ strengths and weaknesses and current and future contracts.

Once Elaine was satisfied that everything possible was being done for Bob, she turned her attention to running the business. She took Bob’s Durable Power of Attorney, giving her legal authority to substitute for him, and the company’s operating plan from their home safe.

The plan told her: To contact the listed professional advisors; who to trust; key operating information; options for keeping their owner interest in the company; and where to obtain additional information.

Her prior experience together with the assistance of loyal employees and professional advisors allowed her to step in on short notice to operate the company.

Key to preserving the business’s survival was Elaine’s current knowledge of the business; her management skills; a legal transfer of authority and a written operating plan.

This story is the exception, not the rule. Caring for the affected spouse can be emotionally draining and time consuming. Most family businesses end up failing when the principal spouse is unable to participate in daily operations.

Consider the alternatives: Waking up to find that your business is being operated by a court appointed manager, or it has been sold or in the worst case - it is closed and the hard assets have been auctioned.