Do You Have a “BUS” Book? Why Every Tower Needs One

By Brian J. Riker Humans don’t like to face their own immortality, so we tend to put off planning for the inevitable. Yet the one thing certain in life is death. While we all like to think that we — and our businesses — will live forever, our day will come. What is troubling is that none of us know exactly when that day will be.

With how dangerous the towing industry is, everyone involved should have a will and a plan for their surviving family members. That is the minimum a responsible person will do: prepare those left behind to handle final arrangements and, when possible, set them up for a future where your income has been replaced so their lives can continue with minimal financial impact.

The same holds true for our businesses. For the owners reading this: What would happen if you were hit by a bus today? Would your business survive, or would it be thrown into chaos because you were the only person who knew critical information such as banking details, key contacts, and passwords for essential information systems?

With gratitude to a dear friend, Bill Giorgis (from whom I borrowed the phrase “BUS Book”), all owners and key personnel need to create a guidebook accessible to specific people. Should one or more of you pass away or become unexpectedly incapacitated, your business can keep operating while a long-term plan is executed for an orderly ownership transfer or wind-down.

At a minimum, this guidebook should include:

• Copies of critical documents such as estate plans, wills, and power of attorney forms that allow others to act on your behalf in specific situations.

• Detailed instructions on day-to-day operations and your wishes for how they should continue or wind down, including who is responsible for what.

• Passwords, bank account numbers and locations, and financial resources (life insurance, trusts, etc.). Don’t forget benefits available from trade associations, the Survivor Fund (which increases with membership), and other sources.

• Contact information for next of kin, attorneys, accountants, and other professionals necessary to ensure an orderly transition.

Just creating the “BUS Book” is not enough. You need to inform key people where it is, review it with them, and keep it updated as information, people, plans, and processes change in real time. Your next of kin and senior management should not be surprised by your wishes when something happens. A successful transition plan requires everyone to be on the same page and understand their roles and responsibilities.

This guidebook should include a detailed survivorship plan so that, should the unthinkable occur — you pass away along with your immediate next of kin, spouse, or designated successor — there is still a clear chain of events that occurs automatically. Additionally, if your company has a “key man,” someone extremely critical to operations, you should have a plan for what happens if they exit unexpectedly. You may even want to consider key man insurance, although that is a topic for another article.

Keep in mind, especially if you are a sole proprietor or single-member LLC: if something happens and you don’t have a legally compliant plan, your staff may not even be able to receive their final paychecks without state intervention. Your spouse might not be able to access grocery money or pay the light bill until the court decides how to close out your business and distribute your assets.

After all the hard work you have put into your business, do you want a Probate Court judge deciding what happens to your legacy? Take the time now to save your loved ones from additional heartache and trouble later on.