In the mid-80s, I worked with Frank Beddor, a very successful entrepreneur. He built a large printing empire by purchasing printing businesses that were marginal, then beefed up their management and sales teams while introducing the most modern equipment. Eventually, he had a collection of more than 25 independent companies.
At my urging, Frank made a “Black Book,” literally a three-ring binder that had a tab for each company. Under each tab was the critical information for that business unit, including:
• Who was in charge
• Key persons under that leader
• The sales and profits for the previous year
• Pertinent information about property holdings and/or leases
• A summary of the rolling five-year plan for that business
• Who to really trust in each business
There were two copies of the Black Book, one in the office of the corporate attorney and one in the hands of Marilyn, Frank’s wife. The Beddor Black Book was updated every 18 months, at which time Frank reviewed the contents with Marilyn and the top leadership.
The contents for such a book might include some or all of the following:
• Location of last will and testament with name of executor
• Names of banks and account numbers, with proper documentation on who has access to them
• Record of properties owned or leased
• Most recent consolidated financial statement for the company
• Key, trusted advisors’ names and pertinent information on how best to use their skills
• Insurance policies
• Stock portfolios information
• Location of safe deposit boxes
• Persons who must be notified
• Succession plan (If you don’t have one, make one!)
• Strategic plan for the business
• Any special instructions for the company
This list is a good beginning. It is in no way exhaustive and needs to be customized for your family so they will be fully prepared, should the unexpected show up on your doorstep.
Family Business Matters has extensive experience assisting family businesses. With many decades of experience, we understand the wide variety of challenges that families face as they work together to build, grow and sustain a thriving family business generation after generation. Through conferences, continuing education programs, family business retreats, speaking engagements and private family business consulting services, Family Business Matters has assisted more than 450 family-owned businesses around the world chart their way through family business issues of all shapes and sizes.
For more information on how Family Business Matters can help your family business survive and thrive, please contact us today at (970) 948-5077.
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