Do you have a plan in place in order to deal with an unanticipated crisis that may interrupt your business? Anticipating potential emergencies and how they impact your operations will help you in preparing to deal with them.
A business continuity plan would describe what you would do immediately and in the long term after an unplanned incident like a disability, a critical illness that would require a long term treatment or death of shareholder or key employee. These events can affect your business operations, your employees, your suppliers, your customers and your business income.
If you are in a partnership, you need to consider how your business will be affected if your partner is to lose his ability to bring income into the business in the event of an illness, a disability or even death. In the event of the death of a partner the partnership is automatically dissolved and having a buy-sell agreement already in place is very important. The agreement would sell the deceased’s interest in the company to the surviving partner(s) at an agreed price.
Unlike a partnership, a corporation does not cease to exist with the death of one of its shareholders. Without a buy-sell agreement the death of a key shareholder may cause legal and financial complications as well as impaired credit. A business continuity plan will help you plan for events that could possibly put your business in financial difficulty. No one can predict the future, but if your business is prepared, you’ll be ready for any emergency.
At Financial Solutions Link Corp., we guide you through your business continuity plan and offer you options that will provide funds to your business in the event of a disability, critical illness or death of a business partner or key employee and help strengthen the company’s working capital and balance sheet to help assure creditors and suppliers about the continuity of the business.