As companies start working on their end of year planning and reviewing current-year results, we want to remind business leaders and owners to keep in mind the following:
- Do you have a succession plan to address the unexpected incapacity or death of a key officer, director or owner? You may want to check your bylaws, operating agreement or other organizational documents to ensure that these issues are addressed as you want them. Remember, as your organization changes, you may need to revisit these areas from time to time. If you are a small business it is particularly important that you address these issues to ensure that your business will continue uninterrupted (or at least with minimal interruption) during a period of change.
- Do you have adequate insurance coverage for key officers, directors or owners? Areas to consider are life insurance programs, disability policies and long-term insurance. Also, don’t forget to make sure that your assets are adequately insured (particularly if you have added or shed assets during the year), including business risk insurance programs.
- Do you have a line of credit or other credit facility in place? While your business may have adequate liquidity at the present time, you may wish to consider putting a line of credit or other credit facility in place while operations are going well. Making these arrangements now (i) may provide a safety net to guard against a temporary down-turn in your cash flow or an unexpected liability, and (ii) may give your business the confidence to take advantage of a growth opportunity without undue delay.
- Do you know a good business counselor or coach? Whether your company is in start-up mode or has been in business for years, there are a number of very good business counselors and coaches available to work with business owners and officers on a periodic basis or to address a specific issue that your business may be facing.
- Are your people happy? While this one often goes without saying, the end of the year is a good time to take the temperature of your organization and assess your working environment. With the amount of time spent working at your business, it is important to make sure that your people remain motivated and dedicated to the success of the business.
These are the types of issues that can make a difference when it comes to the future success and viability of your business. These issues can also impact, on a personal level, the individuals who work for or with you. Let us know if you have any questions or desire additional information on these or other business-related issues as 2012 comes to a close.