In its most basic form, contingency planning is about helping you plan in the event of the Five D’s: Death, Disability, Divorce, Dispute, or Downturn. To many business owners, beginning the conversation about contingency planning is addressing the concept of stewardship – “How do I ensure the business can survive for those who depend on it?
Answering the daunting question “What if?”
We consult on these issues to address matters from something as simple as talking about who knows the combination to the company safe to navigating complex family dynamics in coming up with a buy/sell plan between partners or multiple owners. Designing a buy/sell plan, for example, involves answering the “What if?” question around triggering events such as death, disability, divorce, termination of employment, withdrawal from the business, or retirement.
Contingency planning is often viewed as a conversation about “What if things go wrong?”, however it can also be a question of “What if things go right?” Unexpected growth can be a source of conflict in a business as resources are stretched thin.
Contingency Planning in the context of a Succession Planning or Exit Planning transition is usually part of those engagements and therefore priced in to our scope of work there. However, we also do stand-alone Contingency Planning engagements with fees for design and implementation ranging from $5,000 – $7,500, depending on the work outlined in our scope of engagement and the size of the business.
To start the conversation on what type of plan might be best for your business, contact us and we can set up a free consultation with one of our partners.