Crisis Management: Preparing for the Certainty of Uncertainty

We’re living in unprecedented times. As a result of COVID-19, emotions are heightened and fear is rampant as we worry about our health, our families, our finances, and society at large. While all businesses are adjusting in response to the pandemic, family-run businesses are navigating their own unique set of challenges – challenges they couldn’t have seen coming.

While there is no way you could have prepared for this specific crisis, there are certainly steps you can take to prepare yourself for unexpected disruptions in the future, and you should, because they are inevitable.  For many of us, dealing with the present fills our days and time – however, finding a few hours a month or quarter to plan for the future of your biggest investment can help ensure that you are ready for whatever the future brings.

Here are five ways you can better prepare your family-run enterprise for uncertainty:

Consider the ways in which different crises could impact your business.

One by one, examine how poor health, environmental catastrophes, the arrival of new competition, and other unanticipated events might impact your enterprise. And don’t do this alone.

Have conversations with family members and close friends. Ask your business peers how they’ve overcome similar crises. Only by actively engaging in this conversation can you put together a plan that provides reassurance for the future.  Even outlining how you would deal with a crisis will help when things start to get crazy.

Have one-on-one conversations with all family members.

Be open to what they have to say — from the oldest to the youngest, grandchildren included. Ask family members what they know about the business, its history and past transitions. Ask them what they think will happen in the business when you’re no longer at the helm.

Doing so will give you the opportunity to not only uncover any myths about your business while you’re still in a position to dispel them, but also to share the stories that you want woven into the fabric of your business’s future. You will likely also discover interests you never knew existed, some of which you may choose to incorporate into your business or transition plan.

Think about your bucket list.

Perhaps you’ve compiled a list of things you’d like to pursue once you’ve retired, but have you considered the fact that you may not actually make it to retirement? If COVID-19 has taught us anything, it’s that we can’t take the future for granted.

In light of this, find some time to create or revisit your bucket list now. Don’t delay. Take a morning to jot down your wish list and figure out which items are non-negotiable. Rather than waiting to pursue them all when you finally have the time, divide your future into chapters of one, five, or even 10 years and create a plan to make them happen so that you can ensure your life, however long it may be, is well lived.

Play dead. Literally.

As morbid as this may seem, imagine you’re no longer among the living. Who is in charge of your assets? What dynamics are at play within your family and your business? Who is writing your obituary, and what story will they tell?

Consider how the answers to these and other questions might impact the loved ones you leave behind, not to mention the legacy you spent your life building. If you don’t like what unfolds, take action now to ensure better outcomes for all, which brings us to our final suggestion.

Ask your lawyer to read your will and estate planning documents to you.

Why? Because when we read to ourselves, we tend to be skimmers and the future of your estate is nothing to be skimmed over.

As your lawyer reads these documents to you, pause and reflect between clauses. If you’ve had a change of heart since electing your trustee or executor, don’t leave your lawyer’s office and mull it over. Have your lawyer make adjustments there and then. Do the same with all wishes expressed in these documents because they – not the conversation you had with your spouse before having a sudden heart attack – represent your final word.

There is no way to eliminate uncertainty. However, the tidier you keep your house, the more able you’ll be to navigate the remainder of this crisis and any future crises. If you’d like to discuss ways to better prepare your family enterprise for the unexpected, contact Foundation Wealth Partners to schedule a call with an FEA.