Plan...Plan...Plan

This article appeared in GLMV Chamber of Commerce Action News in May, 2007 (www.glmvchamber.org)

I, like most Illini alums, was saddened to see the recent demise of Chief Illiniwek to the forces of political correctness. To honor the Indians, we offered to broadcast the games in Gujarati, but the offer was rejected.

The point here is that sometimes a business loses a key person and when that happens, you need a plan. You need to be prepared before the worst happens.

If you have a partner or two or three, you should have a partnership or shareholder agreement that will provide for a plan of succession if the worst case occurs. It is often referred to as a "Buy-Sell Agreement" and is highly recommended in business. If one of your partners were to die suddenly, or perhaps become incapacitated or even retire, you don't want to end up with an unexpected or unwanted partner who knows little about your business, such as the partner's prodigal nephew or his widow.

When you establish your business, you should have on your team an experienced accountant, lawyer and insurance agent (did I forget anyone?) to guide you through a potential business destroying situation. The lawyer will draft a buy-sell agreement in which the accountant will determine the buyout price each year based on asset value or perhaps a multiple of sales. A good way to fund the buyout would be key man insurance provided by your insurance agent.

In any case, you'll rest easier when you're at the stadium, cheering on the Fighting Anteaters from UC Irvine in their contest with the Fighting Banana Slugs from UC Santa Cruz.

KENNETH SUSKIN