COSE Update - September 2008 - (Page 26)

eople What’s plan b? t his month’s cover story touched on the highly publicized and sudden death of the talented Helen Jones, president and CEO of Recovery Resources. Although the vitality of the entrepreneurial spirit can sometimes feel immortal, you’re not. None of us are. So we caught up with an expert on succession planning, COSE MindSpring Editor Thomas Gilbride. Here’s what he had to say: Q: What do you tell owners that say, “I don’t have time to put a succession plan together?” A: First, I agree with them. There are so many priorities. But I also remind them that a catastrophe can put you out of business. If you or a key manager suddenly dies, suffers a disability, or walks out the door, you could lose customers and sales. Margins begin to shrink, profits disappear. Suddenly the bank wants its money back. Costs go up, efficiency is lost and your competitors come in for the kill. Ultimately, it doesn’t take too much time to prepare for such events. Q: What are the basic elements of a succession plan that will stand up in court? A: As an owner, you need to have a dependable person on the bench to step in and run the business. I recommend a current and deferred incentive plan to keep them on board, which can be handled with a simple contract. But take caution, the contract must include language that ensures compliance by both parties to avoid future disputes and expensive litigation. Also consider purchasing life and disability insurance on key employees— money can solve a lot of problems and helps the business survive. You as an owner should also purchase life and disability insurance to help take care of your family as they decide whether to keep the business or liquidate. Q: In your opinion, how long does it take to put a plan together? A: Once you make a decision and everyone’s in agreement, the whole plan can be presented and agreed upon in one 30-minute meeting, with everything being signed and put in place within a month. Q: Where can members turn for help? A: Someone you trust. Your attorney, accountant, insurance agent, maybe a consultant you know. It can be as simple or as complicated as you’d like, but whatever you decide, make sure you don’t put it on the backburner for long. ● Making sense of workers’ comp claims shouldn’t be a challenge. Calfee attorneys provide meaningful counsel because they understand small business --so you can understand them. Calfee, Halter & Griswold LLP One of the oldest law firms in Ohio, we are focused on working with companies at every stage of the business cycle and providing counsel in all areas of law. Calfee is a proud partner of COSE for workers’ comp claims. cosemindspring●com Get more tips on succession planning and other topics at cosemindspring.com/gilbride. Cleveland Columbus www.calfee.com Check out the Business Succession Planning: Creating Your Own Parachute workshop on Wednesday, Oct. 22 from 2:45-4 p.m. Register at cose.org/sbc. 26 • cose update • september 2008 http://cosemindspring.com http://cosemindspring.com/gilbride http://www.calfee.com http://cose.org/sbc

Table of Contents Feed for the Digital Edition of COSE Update - September 2008

COSE Update - September 2008 Contents Memo Upfront Vision Tech Business Interrupted The “Bigness” of Small Business What’s the Plan? People Telecom Advocacy Communications Health Pipeline Connect Arts My Cause Plugged In

COSE Update - September 2008

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