Is your business prepared?

While I pick myself up off the floor after realizing it’s almost Halloween, I wanted to talk to you today about being prepared.

When we think about preparedness we often think about our home life… do we have sufficient insurance coverage? are important documents organized? if we have to evacuate (whether it’s because of a storm, a gas leak or a fire), do we know what we are throwing in the car and taking with us?

And while all those questions are valid, today I want to talk about preparedness from a business perspective.

And I want to ask:

Should something happen to you, what will happen to your business?

When I registered my business in Colorado a few years back, it cost me ten bucks. (and while the fee has since changed, I do not take this accessibility for granted)

Colorado also has no requirement for my business to have an operating agreement.?

Yet, my bank required an operating agreement in order to open bank accounts for my business.

The operating agreement is a key document when it comes to business succession. Simply put, it’s your business’s version of a will.

It (hopefully) contains authorization on who will operate your business should you become temporarily incapacitated after an accident, become disabled, or worse.

So assuming your business has an operating agreement (or the appropriate document your state requires), does your Successor know where to find this document??

Better yet, does your Successor have a copy of the document?

If you haven’t collaborated with an attorney on creating an operating agreement, I hope this email inspires you to put this on your to-do list.?

Whether you’re a solopreneur, in business with a spouse or have multiple partners, it’s important to have a succession plan legally in place — and it’s critical your Successor knows where this document is stored.

Here’s to ensuring your Successor will be able to produce the operating agreement if ever needed.