SlackMan
05-15-2013, 06:19 PM
I've been a longtime lurker and only recently joined the Paceline. Despite being a new member, I hope that I can offer a potentially useful post about a topic related to some recent posts that seemed to stir up intense emotions.
As I read about the customers of Paul Taylor who lost significant sums of money when he failed to deliver the product promised, I could not help but think about other scenarios that could lead to similar outcomes. In particular, what would happen if the only person or key knowledgeable person running a small frame-building business unexpectedly becomes incapacitated or dies? I came very close to losing $3,300 on a custom wine cellar in such a situation.
Many one-man businesses (or very small business) of any sort lack an I.C.E. plan. An I.C.E. plan is an "In Case of Emergency" plan that is triggered when the business owner is unexpectedly incapacitated or dies. It instructs someone (e.g., a spouse, family member, or friend) how to either wind down the business or keep it going. It must contain information that allows the completion of outstanding transactions or refund money owed to customers whose orders will not be filled. It must tell the person where to find relevant records on outstanding orders and deposits, on bills owed but not paid, on bank accounts, taxes, etc. In short, the I.C.E. plan needs to tell everything anyone would need to know to wind down the business while satisfying all of its obligations or to continue the business so that all of its obligations are fulfilled.
Preparing an I.C.E. plan is not particularly fun to think about, but it is something every business owner should do. Indeed, it's probably obvious that ALL of us, business owners and non-business owners alike, should have an I.C.E. plan. If you were to become incapacitated or die tomorrow, would you spouse or loved ones know where your assets are, what liabilities you owe, etc.? Hopefully, this is a good time for all of us to be reminded of the importance of an I.C.E. plan. And since I will be in the market for a custom frame sometime soon, I hope that any frame builder that I work with would have such a plan.
Here's to hoping this thread doesn't go into a death spiral like some of the other related threads have. :)
Cheers,
Shane
As I read about the customers of Paul Taylor who lost significant sums of money when he failed to deliver the product promised, I could not help but think about other scenarios that could lead to similar outcomes. In particular, what would happen if the only person or key knowledgeable person running a small frame-building business unexpectedly becomes incapacitated or dies? I came very close to losing $3,300 on a custom wine cellar in such a situation.
Many one-man businesses (or very small business) of any sort lack an I.C.E. plan. An I.C.E. plan is an "In Case of Emergency" plan that is triggered when the business owner is unexpectedly incapacitated or dies. It instructs someone (e.g., a spouse, family member, or friend) how to either wind down the business or keep it going. It must contain information that allows the completion of outstanding transactions or refund money owed to customers whose orders will not be filled. It must tell the person where to find relevant records on outstanding orders and deposits, on bills owed but not paid, on bank accounts, taxes, etc. In short, the I.C.E. plan needs to tell everything anyone would need to know to wind down the business while satisfying all of its obligations or to continue the business so that all of its obligations are fulfilled.
Preparing an I.C.E. plan is not particularly fun to think about, but it is something every business owner should do. Indeed, it's probably obvious that ALL of us, business owners and non-business owners alike, should have an I.C.E. plan. If you were to become incapacitated or die tomorrow, would you spouse or loved ones know where your assets are, what liabilities you owe, etc.? Hopefully, this is a good time for all of us to be reminded of the importance of an I.C.E. plan. And since I will be in the market for a custom frame sometime soon, I hope that any frame builder that I work with would have such a plan.
Here's to hoping this thread doesn't go into a death spiral like some of the other related threads have. :)
Cheers,
Shane