So, my best friend trusts me enough to get in a plane I am flying and I trust him enough to ask him to be a Godparent to one of my kids. So why would I think twice about signing a bit of paper that protects his future, his family as well as my own?
Is it because I trust him too much? Is it because I don’t want to have a “difficult” conversation? Is it because I don’t think I need to? Is it because after one flying lesson I am waiting for the call to appear in the sequel to the “Top Gun” movie?
Regardless of my future Hollywood career, there is no real reason for any business owner not to commit their business relationship to paper and protect all parties involved.
We work with lots of business owners and for almost every company we meet they are either family members or personal friends. They are people who have a relationship built on trust, maybe even enough to get in a plane I am flying!
What amazes me is the number of businesses that are built on the back of friendships, shared goals and family bonds where the risk to these relationships is left unaddressed if there are no legally binding agreements in place for the future.
Committing to a legally binding agreement that determines what happens to the company shareholding if the worst was to happen to one of the business owners, removes any uncertainty for both the business and the family that sits behind it. Surely that must be worth doing? Certainty of what will happen and capital being available to make sure it does, is worth having at a time when the business has been weakened and you are dealing with a personal loss.
We also see businesses where the common goal gets lost and it is time for business partners or directors to go their separate ways. This doesn’t have to result in the family relationship or years of friendship being lost. Committing to paper at the outset how a business can separate, or having simple service contracts in place can help, not to separate your business but to preserve your family relationship or years of friendship. Is that not of equal importance?
Engaging with the right Corporate Lawyer, Accountant and Adviser will give you the freedom to know that you have protected your business, your family and your future against the worst happening and surely doing that is less scary than being my co-pilot!!!
To find out more or if you’d like to discuss further please get in touch.
'Enhance, Protect and Grow' Workshop in partnership with Business Women Scotland
On Thursday 10th October, we held our first workshop in partnership with Business Women Scotland.Read more