Modern Tire Dealer

APR 2019

Magazine for the professional tire industry

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Page 61 of 85

M T D A p r i l 2 0 1 9 60 B u s i n e s s I n s i g h t F rank runs a successful tire store in Happy Town America. One Sunday morning, Frank was playing frisbee with the family and having fun, but wasn't feeling quite right. Must have been the green peppers in last night's dinner. As the day goes on, Frank begins to get a migraine and needs to lay down. e family goes back into the house and Frank takes a nap, but never wakes up. Now, imagine Frank's family... Frank's wife, Jenny, was half-way to finishing her nursing degree, something she'd always wanted to do. She had never worked in Frank's business. Frank was essentially the manager of the store they owned. Frank's salespeople were good salespeople, but have never had to manage employees, phone in payroll, manage the books, pay/file sales tax, manage cash flow. As a matter of fact, nobody knew where the loan paperwork was for the two outstanding loans Frank had. Frank managed a profitable store, but organization was never a strong suit. Monday, Frank's spouse can't grieve or even take care of their three kids, a two-, seven- and 10-year-old. She must figure out the business. Luckily, she knew her husband's password to his phone, and could view his contacts to call his CPA. Unfortunately, she didn't know he fired him 8 months ago and hired a new firm, but she had no idea who he hired. Her only option is to log into the company's banking website and begin tracking down check stubs, bank statements and try to do some investigation to figure out everything. It's not impossible, but is this really what she should be doing right now? Frank always knew he should put together a will and increase his life insurance, but he was always putting out fires at the store and never got around to it. TAKE ACTION, NOW I'm sad to say that this could happen to any of us, at any time. In January, a great man and friend passed away and le a similar scenario for his family. He loved them so much and worked hard to ensure they had a great life but hadn't taken the time to prepare. Hopefully, this story will encourage you to take action, so your family doesn't have to go through hell aer you ascend into heaven. First, how well are you insured? Typically, you should set aside enough to pay off your house, pay for your children's estimated college expenses and replace your income for five years. Another type of insurance you should consider is long term disability (LTD). Some owner's put their income into their company's Workers Comp policy. However, with LTD and health insurance, you'll have better coverage which won't just cover you in the event of an accident at work but will cover you for any type of debilitating illness or accident, and it will be less expensive without the same state mandated income limit restrictions. BE PREPARED In addition to getting your insurance right, you should go through the steps necessary to ensure your business and your family is prepared. Although I cannot create a list specific to your exact situation, the below steps should at least cover most of the larger concerns. 1. Store emergency procedures manual — is book will help in so many ways, not just in the event of a loss of life but also when you lose power, internet, have a flood, tornado, or any other emergency situation that may occur especially when you are out of the store. It should list all of the vendors, contacts, and their phone and account numbers. Include things like garage claim insurance companies, your POS IT department, credit card machine, internet, phone or VOIP providers, etc. is way, when something goes down and you are in Mexico on a dealer trip, the store doesn't have to take you off the beach! It should also include a section for manual/paper invoices, and the procedures on how to calculate tax and process credit card payments in the event of a power loss or POS issue. Don't forget to include a major equipment list and who to call for service in the event of a failure. If you have ever had a major insurance claim, one of the things they will ask you is whether you have an emergency procedures manual. 2. Password/web account list — First, let me say this, for security, do not store this on the cloud. But somewhere, you should have a password list that your spouse, business partner or other employee can get to in the event of an emergency. is should be updated anytime a password changes and stored on your computer under a non-conspicuous file name such as "Interesting stuff " that only you and your spouse know. Critical succession planning HELP YOUR FAMILY SURVIVE YOUR DEATH George Kingman By ©GETT YIMAGES.COM/ANDRII YALANSKYI

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