While your death would certainly create a giant vacuum in the operation of your business, so would your incapacity. Although people often associate incapacity with old age, the reality is that incapacity can strike the young as well. If you do become incapacitated, even for a relatively short period of time, it could be devastating for your business if you didn’t plan for the possibility. Who would take over the day to day management of the business? Who would negotiate contracts with suppliers and resolve conflicts with clients/customers? Not only is it crucial to choose people to handle these jobs, but the people you choose to fill in must have the proper legal authorityto act on your behalf and everyone else involved must know that they are acting on your behalf pursuant to your wishes. Incapacity planning foresees the possibility of your incapacity and develops a plan to keep your business running if that possibility becomes a reality.
Home » FAQ » Business Succession Planning » What is incapacity planning and why is it particularly important for a small business owner?