If you are a small business owner’s child, you must protect your parent’s business. While your parent may have taken all the necessary steps to protect their business, as the next generation, it is up to you to ensure that the business continues running smoothly and remains protected. This is essential if your parent can no longer be involved in the business’s day-to-day operations. Here are some things you need to do to protect your parent’s small business:
Learn the Ropes to Running the Business
When you’re taking over your parent’s business, it’s important to learn how to run it well. This means learning about the business and working hard to make sure that the business grows and improves. Aside from familiarizing yourself with the business’ operations, you should also take courses on business management or learn new skills. Doing so will give you the skills and knowledge you need to take the business to the next level.
Make Sure Your Parent Has Health Insurance
One of the most important things you can do to protect your parent’s small business is to ensure they have health insurance. This is vital, as it will ensure your parent receives the healthcare they require and also protects you from having to pay out of pocket for their hospital bills. This ensures you don’t have to sell off assets or use savings to pay for their care. Moreover, if your parent is self-employed, they may be able to take advantage of tax deductions for their health insurance premiums. This can help reduce the overall cost of the policy.
Get Guardianship Appointed
If you want to help protect your parent’s business, you need to get guardianship appointed. This will give you the legal authority to make decisions on behalf of your parent if they cannot do so themselves. This may involve going through the court system, but it is worth ensuring that the business is protected. You can talk to a reputable adult guardianship lawyer who can guide you through the legal process and help you get the guardianship arrangement. They will explain the steps you need to take and help you get the necessary documentation in order.
Keep Track of All Important Documents and Passwords
One of the most important things you need to do to protect your parent’s small business is to ensure they have a safe place to store their important documents. It’s also essential to ensure that the safe place for these documents can also remain safe even if there is a fire or another type of disaster. Here is a list of the most important documents:
- Copy of Business License
- Tax Returns for the Past 3 Years
- Financial Statements for the Past 3 Years
- List of Customers and Suppliers
- Insurance Policies
- Wills and Estate Planning Documents
- List of Bank Accounts and Contact Information
- Credit Card Statements for the Past 6 Months
- Business Loans and Leases
- Employee Contracts
- Vendor Contracts
Knowing where to find these documents will save you a lot of time and hassle if something happens to your parent and you need to take over the business. Additionally, it’s essential to keep track of all passwords associated with the company. This includes social media accounts, website login information, email accounts, and anything else that could be used to access the business’ online presence. This will ensure you can access these accounts if your parent cannot do so themselves.
Be Proactive in Addressing Issues
One of the best ways to protect your parent’s small business is to be proactive with business-related matters. This means being on the lookout for potential problems and taking action immediately if you suspect something is amiss. For example, you noticed some inconsistencies with the business’ financial statements. Or, you received a call from a supplier that the business hadn’t paid their invoice on time.
Additionally, having a good relationship with your parent’s employees is important. This will ensure that they are more likely to come forward with any concerns about the business. For example, they may be aware of financial irregularities or suspect that something is wrong with one of your processes. They are in a position to see your operations closely but from another perspective, so they will likely see things you cannot. Hence, if there are any problems or issues within the company, it’s best to address them as soon as possible.
Small businesses are the backbone of the American economy. As such, it’s important to do everything possible to protect them. Taking precautions will help ensure that the business remains healthy and continues to thrive for years to come.