Entrepreneurs often act pragmatically: as soon as a problem arises, he or she thinks about it. But what happens to the business in the event of an emergency?
What is the impact if an entrepreneur dies, becomes disabled or goes through a divorce? Many business owners do not have an emergency plan in place. While the situations described can be very unpleasant for the business.
Our advice: as a precaution, draw up an emergency plan that includes choices and arrangements that will work out best for the business in such situations.
How do you act in an emergency?
Entrepreneurs are ambitious, energetic and want to get ahead. They don't like to think about emergencies or unpleasant scenarios. Still, it is smart to think about the future of the business. Suppose you get into a car accident and are in a coma for months. Who then acts on your behalf? How will this affect the business?
An emergency plan describes these scenarios, choices and effects in detail.
Create clarity for everyone
For years you work on the success of your business. It is an eternal shame if this becomes uncertain overnight if the entrepreneur finds himself in an emergency position. A "living will" offers a solution for this situation. This describes who may act on behalf of the entrepreneur in emergency situations. To make decisions, distribute or arrange matters in the interest of the business.
While it is not easy to make these tough choices, it does provide clarity. People know how to act when disaster strikes.
Guarantee the continuity of the business
In SMEs, the entrepreneur is often also the business. If something happens to the entrepreneur, it directly affects the business. The starting point in an emergency plan is to ensure the continuity of the business. Adagium 's team advises entrepreneurs to prepare an emergency plan. And includes this in the risk profiles for valuing the business. If the entrepreneur leaves, what is the effect on the value of the business?
Draw up an emergency plan and keep it up to date. Entrepreneurship often involves change. Changes in the business, vision or scenarios can affect the provisions in the emergency plan.
