Are Your Eential Documents Prepared for Succeion? by Ren Grajales

The business world was shocked in October 2014 when Christophe de Margerie, the CEO of French energy giant Total, died in Moscow after his plane crashed into a snowplow. The untimely passing was also a jolt to the company because, unlike many of its peers, it did not have a succession plan in place.

Although Total's board announced a successor within a week, the firm's experience underscores the importance of being prepared, whatever the size of your business, for a seamless and successful succession.

Small businesses have even more reasons to prepare a well-defined plan, since they're often family operated and/or or led by an owner with a firm vision of the enterprise's direction. Whatever your wish for your business, quick and easy access to your records is essential.

Partnering for a Succession Solution

A trusted partner can help eliminate guesswork and relieve stress when putting a succession plan into action.

You'll have documents at the ready. If the plan is to sell the company after your demise, your executors must have access to your tax returns, payroll and other files to arrive at a fair price and prove due diligence. Any failure to produce all of the required information can leave your heirs open to a legal challenge.

Even if your plan is to keep the business going, relatives, business partners and lawyers will need access to everything and anything that can provide a succession road map. Imagine the drain on time and money if important papers were misplaced or lost altogether.

Gain the services of a knowledgeable guide. In addition to making files easily accessible, your partner should be able to store your records in a way that anticipates succession, which means more than just alphabetizing them. An expert partner with a deep knowledge of regulatory requirements can help you categorize, sort and save the documents that will demonstrate compliance with industry and government guidelines.

Get protection against the elements. Even the most meticulous succession plan won't help much if the documents it relies upon are stored in a site that burns down or on a server that's crash-prone. Eliminate the threat of natural and man-made disasters by hiring a partner with secure offsite storage facilities.

As the sad event in Moscow reminded us, we can't control what fate has in store. But that doesn't mean you lack control of your company's destiny. By working with a trusted and experienced partner, you can take steps now to prepare for a smooth succession in the future.

LINK:	http://blogs.ironmountain.com/2014/service-lines/small-business/are-yo...
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