Personal Tragedies and Operating a Business

Neal Furlong, ChFC^®, CEPA^®, CLU^®
Senior Wealth Advisor

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Running a business is challenging under even the most perfect conditions. But what happens when you, as a business owner, are confronted with personal tragedies or other events that require you to take time away from your business? Can your business run well without you at the helm for a week? A month? A year?  

Today, we’ll look at a fictional but representative story about how one business owner managed to balance personal tragedies with running a business by leveraging business continuity instructions.  

The Call 

Caleb King was preparing for his business’s biggest event of the year with some of his top managers. This event was doubly important this year: The event was always a driver of up to 20% of the business’s yearly revenue, but this year was the 10-year anniversary of his business’s founding. If everything went well, Caleb projected that he’d be able to pursue his expansion strategy soon after.  

As he sat in a planning meeting, he noticed multiple missed calls from a number he didn’t recognize, all within seconds of each other. As he racked his brain to figure out who it might be, the number called again. Frustrated by the interruption, Caleb answered with a demanding, “Who is this?” 

“Is this Caleb King?” 

“Yes.” 

“Mr. King, this is Officer Moore with the police. Are you related to a Janet and Ada King?” 

“That’s my wife and daughter,” Caleb answered. “What’s wrong?” 

“Mr. King, I regret to inform you that your wife and daughter were victims of a hit and run. We’re currently investigating . . .” 

“You’re kidding me,” Caleb shouted in the middle of the meeting, drawing everyone’s attention. “Are they all right? Where are they?” 

“They’re currently being transported to St. Roger Hospital,” Officer Moore replied. “I wanted to ask you . . .” 

Before Officer Moore could finish his sentence, Caleb darted for the door.  

“Is everything okay?” asked Janine, his vice president of business development.  

“No. My family might be dead. I have to go to the hospital right now.” 

And Caleb left, leaving his team in stunned silence.  

“This is terrible,” said Marcy, Caleb’s communications director. “What do we do now?” 

“Let’s take a break,” Janine said. “I have some phone calls to make.” 

Working Through Tragedy 

Janine immediately went to a lockbox in her office. She found the phone number of Caleb’s long-time business advisor, Ben, and called it.  

“This is Janine, and Caleb told me that if something bad ever happened, I should call you,” she said after Ben answered the phone. “Something bad happened.” 

After filling Ben in with the limited details she had, Ben agreed to come down to the office and explain to Janine and everyone else what they would do next. 

When Ben arrived, he knew immediately the people he needed to talk to: Janine and Marcy. He sat down with them and opened a dossier filled with a file about 2 inches thick. 

Janine and Marcy immediately recognized what it was. Five years earlier, Caleb, Janine, and Marcy met with Ben and his Advisor Team to create a business continuity plan for if something bad ever happened to Caleb. They had all agreed that if something went wrong and Caleb couldn’t run the business, Janine and Marcy would take the reins until he could return. 

Ben walked Janine and Marcy through the continuity plan to refresh their memories about what they needed to do going forward. The plan included important information about business strategies, key clients, prospects to target, banking passwords, and more that would give Janine and Marcy the guidance they needed to fill in for Caleb.  

“And of course,” said Ben, “my team and I are here to help you guide the business through this tragedy.” 

The Outcome 

Later that evening, Caleb called Janine and updated her on what had happened.  

Fortunately, his wife and daughter were alive and would survive. But they would require years of rehabilitation and several major surgeries to help them get their lives back on track.  

“I’m going to be leaning on you and Marcy for the next good while,” Caleb said. “If you haven’t called Ben already, call him.” 

Janine told Caleb that she, Marcy, and Ben were already moving forward with his business continuity plan. She assured Caleb that they would keep the business running according to his plan until he was ready to come back. 

As word spread about Caleb’s tragedy, Janine and Marcy kept the team focused on executing the business’s big event.  

“Caleb and his family need us more than ever,” Janine said. “Let’s do it.” 

By following Caleb’s business continuity plan, the company managed to exceed expectations for the yearly event. Customers came out in droves to support the business while prospects stood in awe by how well the company continued to serve its clients even in the middle of a horrible tragedy.  

As Caleb’s family became healthy again, he resumed his role as owner and figurehead of the business, just as the business continuity plan had outlined. And of course, Janine and Marcy were rewarded for their hard work. 

Planning for the Unspeakable 

No business owner wants to ruminate on everything that could go wrong in life. But when you own a business, you probably have numerous people who rely on your success to maintain their lifestyle. Whether it’s family, employees, or the community, your ability to keep the business running is essential, even in the face of unspeakable tragedy.  

This is why it’s so crucial to begin a business continuity plan long before you need it. In times of tragedy, you may not have the focus, time, or desire to plan how your business will operate. And without a plan, the business that you built could be in a position to stall or even fail without you.  

Caleb had planned ahead, which allowed his business to continue to function as he dealt with something much more important to him: the health and well-being of his family. Ben and his Advisor Team had helped him pick out successors, organize important documents, and provide an overview for everything that he did on a daily basis so that Janine and Marcy could hit the ground running when they took over.  

This meant that Janine and Marcy didn’t have to build a plan from scratch to ensure that the business would continue to run, especially at such an important time for the business. Though the transition was chaotic and stressful, Caleb’s business continuity plan helped them both settle in smoothly and have the confidence and strategies they needed to execute on their business’s big event. 

We strive to help business owners identify and prioritize their objectives with respect to their businesses, their employees, and their families. If you have questions on this topic, we can help with more information or a referral to another experienced professional. 

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This is a fictional situation. Specific financial advice references provided herein are for illustrative purposes only and are not representative of decisions that have been made since the case study was published nor of decisions that would be made in the future. Advisors’ services, investment strategies and conditions for accepting accounts may vary.

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