Taking part in creating a business is probably not only an exciting decision in your life, but also a quite stressful risk. Oftentimes, while engaging in a role of partnership or stakeholder, we talk about potential situations that would affect our business. However, we usually don’t like to think that our business partner could one day not show up in the office. Let’s be honest, people don’t like to think or even discuss the topic of death, but as your business evolves it’s important to be prepared for any circumstance that can affect the future of your hard earned business.
Here is why I play the role of Devil’s Advocate and ask the hard questions. If one of your partners passes away, would you want to work with his or her spouse as a partner in the business? Would you be ready to immediately buy out your partner or get involved in an expensive law suit? Chances are you would like to avoid these situations. By putting together a Buy-Sell Agreement and funding it with life insurance, you can omit unnecessary issues that could arise if such a plan is missing. A little preparation on the front end can prevent huge problems should a disaster occur.