Everyone's Replaceable: An Owners Emergency Plan

Entrepreneurs, much like parents, are fiercely protective of their businesses and the way that they are run -and rightfully so. They also feel like perhaps the business could not be run by anyone else, and that's natural too. 

But for ourselves, our sanity and the long term good of our business we must reflect upon the unthinkable- what if we weren’t there or physically able to run them?

When I started the bakery I was a “one gal show” for the first several years as I built my name.  As a result, this mindset of only I can do it was ingrained in my brain at all times. I had considered what could happen if iI was ill or injured, and thought I had myself covered by 2010 with a devoted staff, a will and insurance. 

On a warm June evening in 2014, I’d wrapped a work day at the shop and headed to a Byward Market restaurant to meet some business pals for their anniversary party.  I enjoyed myself for a bit and then set out on my bike home around 10. As I navigated the bike ramp up to the pedestrian bridge on Somerset st., I lost my balance. My right leg caught in the bars on my bike and I went down, shattering everything between my ankle and knee. As I laid in the vines at the side of the path with my leg mangled, I went into shock. 

The following weeks were a blur.  After some good samaritans came to my aid and got me an ambulance, I was hospitalized for over a week.  I’d had surgery and was now the proud owner of a rod, 2 metal plates and 20+ screws that will remain with me for the rest of my  life to hold my leg in place, and had been slapped with a timeline of 1 year until I could walk unassisted again. My partner and parents had come to the businesses’ aid, taking on some physical work and my staff had risen to the occasion. While this worked well for a bit, it quickly got messy and I realized that while I was so busy taking care of the business and my staff with emergency logistical planning, I had forgotten the businesses’ keystone: myself. 

I was very very lucky I had supportive folks for me that year, but ultimately it was the beginning of the end for Auntie Loo’s.  My staff quickly became disgruntled without me present and there was infighting. I began to fall behind on supplier invoices due to all the extra labour I had to pay for.  And biggest and most devastating of all, due to the failure of an agent to keep me up to date on the changes in my policy since I’d incorporated (and my failure to ask) the insurance plan I’d paid into for a decade would not pay out for this accident.  I was on my own. 

Here’s how you can draft your own emergency plan.

Insurance.

Start with insurance and ensure that you’re covered as the owner.  When I incorporated my agent failed to let me know that since I was now president, I was not considered an employee, and therefore not covered under the “key person” and “staff injury” portions of my plan.  This was a mass failure on my part to not ask. I should have been carrying my own policy to ensure I’d be covered if I was injured. If you’ve recently changed your business structure or insurance plan, call your provider and ask lots of questions. Have them email you the answers to all inquiries so you have written and dated proof.  While you’re thinking of this, pull out your policy and review it. After this experience I left my former agent and have been with Scrivens ever since. I find they’re better at transparency and more catered to food based business.

Who’s The Boss?

Create an emergency hierarchy that would come into play should you be injured.  Review it with your staff, and have an open conversation about how things would be handled should you be suddenly put out of commission.  Carefully outline who would be in charge of what, who would make the big decisions, etc. Having all of this in play ahead of time and discussed will make things clear for everyone, and reduce feelings of animosity. Choose a “mediator” in the form of a fellow business owner who could resolve in house disputes in your absence. 

Scheduling.  

Based on this new hierarchy, next you will create an “emergency schedule” that would come into play for 14 days should you be injured.  So many owners are physically involved in their business, so ensure you are covering your hours and time too with plenty of staff. This will make a staff transition in the event of emergency seamless and reduce stress for all involved. A good insurance policy will actually pay out for this additional labour.  (Talk to your provider to ensure it’s part of your plan).

Banking.

If you’re out of commission (or strung out on Dilaudid on an IV for 10 days like I was), you won’t be of sound mind -or even conscious-  to make decisions or do something small, like your banking. Have some talks and choose a trusted friend, partner or even a fellow business owner to oversee your account if you’re not able to.  You can create a binding legal agreement with them, and set up some parameters on what is to be done with payroll, bills and invoices if you aren’t available to physically do it. Ensure you have a chat with your banker and have your trusted person added to the account for an “in case of emergency” situation.

Aftermath.

Depending on your emergency, your recovery could take a lot of time.  For example, if a family member passes and you need to travel far to sort the estate, or if you can’t walk for a year.  Take yourself out of the equation. That is, create a schedule that could work for 4-6 months without you in it. Cost out your labour, who this replacement person would have to be, and firm up your hierarchy and management wishes.  

Access.

Your newly created plan is complete!  However, it’s no good if no one can see it.  Give a copy to a trusted partner, friend or fellow business owner so it is accessible and easy to get to should you be put out of commission

This may seem like a lot of effort and research, and I know there seem to be daily fires as a small business owner that are more worthy of your attention right now. Taking care of this sooner rather than leaving everyone scrambling with uncertainty will prevent stress for your staff, protect all your hard work, ensure business hums along with no hiccups, and creates a clear understanding of exactly what your wishes are. 

And at the end of the day, that’s good business!

Thanks for reading!  If you’re one of my Prince Edward County followers/clients, I’m delighted to announce I’m bringing a workshop to you on Wednesday March 25 at the Consecon Legion.  Come learn about all things wholesale and distribution. Spots are limited so don’t wait to buy your tickets.