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After careful review of the COVID-19 environment, the law firm of Chayet & Danzo, LLC, will be conducting in-person appointments in our offices on a limited basis and with strict social distancing protocols.

During this time, our team will continue to diligently work remotely on all client matters and will maintain communication through email, telephone, and video conferencing. Our main office number, (303) 355-8500 will continue to be answered during our normal business hours of 8:00 a.m. to 5 p.m. Monday – Thursday and 8:00 a.m. to 4:00 p.m. on Fridays.

This decision to have limited appointments in-office while following strict social distancing protocols is in the best interest and health of our team, clients and community.

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We wish you and your family continued health during these unique and challenging times.

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The time to create a business succession plan is now

| Nov 5, 2019 | Uncategorized |

A business is a legacy. Whether it’s a small operation, a family effort or a large company, the business’ success directly supports family, loved ones and its surrounding community. As a business owner, you’d do whatever necessary to protect this legacy, right?

Surprisingly, a significant number of owners are completely ignoring one of the most important aspects of ensuring a business remains healthy long into the future: succession planning.

The importance of business succession planning

A business succession plan is, at its core, a guide. It lays out what will happen to the business should you no longer be able to continue in your role. That could be due to a long-expected event, such as a retirement, or something unpredictable such as a serious illness or family emergency.

This could happen at any time. While difficult to consider, what happens if a car crash puts you in the hospital for a month? Or more tragically, if you do not survive? Consider these questions:

  • What happens to your shares of the business?
  • Who takes on your key responsibilities?
  • Is there someone ready to step into your role?
  • Will certain financial accounts be disrupted?
  • Does your operating agreement include measures for what to do in this situation?

Without a clear answer to these types of questions your business may be thrust into a tenuous situation, with your colleagues and family members forced to mire through unresolved issues.

Taking proactive measures

The stakes here are very clear, yet many entrepreneurs still lack a succession plan. According to a survey cited by CNBC, 72% of business owners said they did not have a succession plan in place. In a separate survey, 80% of respondents said they were too busy dealing with the day-to-day realities of their business to worry about a long-term plan.

While proper succession planning requires a small investment of your time, it does not need to be complicated. The Denver Post story mentions some good starting points. That includes:

  • Ensuring someone trustworthy can sign checks and purchase orders, and manage financial accounts
  • Listing what you do – and who will be responsible for those things should you become unable to carry them out
  • Considering insurance that may allow your business to hire someone on an interim basis to weather the initial storm
  • Addressing partnership agreements, such as the right to buy your shares
  • Identifying and training a potential successor

The most effective estate plans are thorough. For a business owner, that means making considerations for the company you’ve spent years building. This is a piece of your legacy. Treat it as such.

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