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Regularly update your succession plan – it isn’t for setting and forgetting!

(ENTREPRENEUR) You may think that once you have a succession plan in place, you’re set for life, however, it’s recommended to continually update them!

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We’ve written before about how the everlasting success of the business will need to outlive you, and this is best conjured up in a succession plan. This is especially true for small business owners and entrepreneurs that have built an empire for themselves but aren’t sure what the future will hold beyond their passing. This is the exact reason that succession plans shouldn’t be set and forgotten, but instead consistently updated.

What are some of the obvious reasons that you may need to update your succession plan?

  1. Health Issues
  2. Marriage or Remarriage
  3. Changes in health in executors or guardians
  4. Changes in the law
  5. Changes in Residence

Now, for the not-so-obvious reason: It should be updated when any personal circumstances changes, which most likely happen often. This is why a will is like your home, an investment that needs to be properly maintained, and if it is, it will last a very long time.

Examples include changes in economic or parental status, as well as designations or fiduciaries. Elders could be aging, siblings may be having their own life changes, as well as if any dependents are born with or develop special needs.

“Every state has different laws regarding the administration of a will,” he said.?“For instance, states vary regarding the required residence of an executor, inheritance tax laws, and whether a child can be disinherited by omission.”

The recommended procedure is to review wills and powers of attorney at least every five years.

Lastly, when should a will update to a trust?

  1. When you have some significant assets (more than $500,000) in your own name.
  2. If you have special needs beneficiaries.
  3. If you have properties in multiple jurisdictions (multiple states or even counties).
  4. If you have beneficiaries you want to control distributions to (e.g., distribute at ages 25/30/35).
  5. If you have kids from a previous relationship you want taken care of.
  6. If you may want asset protection (special trust needed).
  7. If you are a big dog (over $22M if married), to save taxes.

Emily Drewry is the Web Producer at The American Genius. She holds two Business degrees in Digital Marketing & Advertising as well as Sales Management. She resides in the sunny Orlando, FL and embodies the heart of hospitality. When not working on web projects, she's probably at a theme park or thrifting her next trendy piece, iced coffee in hand.

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Business Entrepreneur

Small businesses angry at depletion of COVID-19 relief funds without warning

(ENTREPRENEUR) Small businesses are in shock when they find out COVID-19 relief funds are no longer available, with an email update from the SBA.

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Small businesses are no longer offered EDIL loans from the SBA.

In May, the Small Business Administration (SBA) sent out an update to borrowers of the Economic Injury Disaster Loan (EIDL) for COVID-19 relief. The EIDL program is now out of funds, according to an email sent to borrowers.

The loan program formally closed back in December 2021, but there was a period when small businesses who had already received funding could request additional money. That period is now officially over, and the $345 billion that was allotted for COVID-19 relief is gone.

The impact of EIDL

Many owners and entrepreneurs are outraged and frustrated with the lack of transparency from the SBA. There was no warning that the funds were almost depleted and many businesses were relying on that loan money to keep their businesses afloat as the economy rebounds. However, SBA Administrator Isabella Casillas Guzman praised the program,

“The SBA has delivered historic economic relief to millions of America’s small businesses through the COVID Economic Injury Disaster Loan program…”

According to an SBA press release, over $390 billion in aid was distributed to nearly 4 million businesses.

Small businesses still need help

In May, Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization (WHO), told health ministers that COVID-19 and its effects are not over. Here in the United States, life seems to be getting back to normal, if you discount the horrific inflation and gas prices, which are further impacting the recovery of small businesses.

Congress has been wrangling with legislation (H.R. 3807) that would offer more funding for those that were hit hard due to covid. Getting the House and Senate to agree on this legislation is expected to be difficult. So, no guarantees that more help is coming.

The SBA recommends that businesses who need more resources contact their local SBA office. Virtual appointments can be made for those who wish to avoid contact.

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Business Entrepreneur

Should your severance agreements include confidentiality clauses?

(ENTREPRENEUR) Confidentiality clauses and NDAs have long been tied to severance agreements – but is that notion becoming outdated?

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Severance agreements and their ilk have long included confidentiality clauses, often comprising an exhaustive list of actions former employees may not take should they desire to keep the benefits listed in the agreement. Carey & Associates P.C.’s Mark Carey breaks down the knowledge you’ll need to successfully incorporate a severance agreement – including a stern warning about the future of confidentiality clauses.

There is a long list of things you’ll need when curating a severance agreement, but we’ll start with Carey’s honey-do-nots.

Carey’s primary recommendation is avoiding a non-compete clause where, previously, there wasn’t one.

“As employment lawyers, we see this tactic used every day, but you do not,” he says.

This is because most employment lawyers will advise that a non-compete agreement is largely unenforceable, which sets a poor precedent for an otherwise airtight document.

Carey even recommends against reviewing prior non-compete clauses for the same reason.

He also eschews what he calls the “21 days to sign – or else” philosophy, and he advises that employers should loop themselves into the non-disparagement clause so that employees cannot be blacklisted – something he refers to as “a very real phenomenon.”

What a severance agreement should include is a non-admission provision, a payment provision, a release of all claims to cover any feasible scenarios regarding employee disclosure, a challenge to agreement, a “no other amounts are due” section to release the employer from future responsibility, and a mandate to return any company property. This is a truckload of information, so you’ll want an employment lawyer to help you through the process.

But what Carey warns against is the future of confidentiality agreements, or NDAs. While these provisions have long accounted for employee silence in the face of abusive or corrupt employers, Carey posits that, one day, “confidentiality provisions in employee severance agreements will be banned as a matter of statute and public policy.”

This assertion comes in the wake of the #MeToo movement and the uncovering of the manner in which powerful people were using NDAs to buy silence from the people who suffered under their direction. Carey points out that it’s a non-partisan issue; corruption isn’t aligned with one specific political party, and the option to come forward with allegations of misconduct is a courtesy that should be afforded to all.

Whether or not confidentiality agreements are ethical is a moot point, and Carey does recommend continuing to use them when necessary – but, sooner or later, one can safely assume that the landscape of severance agreements will change, arguably for the better.

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Business Entrepreneur

4 tips for your next team brainstorming session to be a guaranteed success

(BUSINESS) Brainstorming is a powerful business tool, but most sessions are a waste of time due to being poorly planned.

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There’s power in numbers – especially when it comes to creativity and innovation. But if you’re going to host a brainstorming session with your team, there have to be some expectations, ground rules, and order to the process. Otherwise, creativity can quickly turn to chaos.

What is a brainstorming session?

A brainstorming session is a gathering of minds with the expressed purpose of generating creative ideas and thoughts around a particular topic, project, challenge, or opportunity. The premise is that there’s exponentially greater creativity when there are multiple minds in the same room.

“Besides simply generating new and unique ideas, brainstorming meetings bring people together where they can all contribute to the creative process,” notes Lucidchart. “Often, this element of brainstorming becomes more valuable than the ideas shared in the actual meeting.”

When you have a successful brainstorming session, individual team members leave feeling valued and empowered.

Not only is there a sense of fulfillment that comes from contributing ideas, but there’s a feeling of being smarter when you leave.

Tips for brainstorming session success:

For best results, brainstorming sessions need to be thoughtfully planned out. And if you put the following tips into action, you will be quite productive:

1. Invite the right people.

Hosting a successful brainstorming session begins with inviting the right people. Typically, it pays to have a variety of people. This includes a mixture of high-level employees and entry-level employees, introverts and extroverts, Type A and Type B personalities, etc.

Likewise, you want to be sure you’re not inviting too many people. When you have too many people present, it’s easy for a few people to steal the show while everyone else remains passive and provides little-to-no contributions.

2. Set the proper expectations.

A good brainstorming session starts with preparing individuals for what to expect. This happens both before the meeting and at the start of the meeting.

Setting expectations begins when you extend the invitation to attend the session. Clearly explain what the session is about and how it will go. Give them a specific timeframe and let them know if they need to show up with anything prepared.

Once the meeting begins, explain what will happen, set ground rules, and make sure everyone understands that a brainstorming session is designed to produce as many ideas as possible (not necessarily pick the best one). In other words, it’s not good practice to shoot down people’s ideas. Instead, everything gets brought into the light and can be filtered and refined at a later date.

3. Use the Right Tools.

Having the right tools on hand can make any brainstorming session much more efficient. One of the best applications is a platform called Box Notes. This online note-taking app allows teams to live-scribe notes in real-time (all at once or individually). This makes it perfect for both in-person brainstorming sessions, as well as virtual ones.

You may also find it helpful to have some sort of timer app or countdown clock that helps you stay on track. It’s easy for time to get away from you, but with a pre-programmed clock, you stay on task and can fluidly move from one part of the session to the next.

4. Promote creativity.

Do everything you can to promote a creative environment where people are most likely to bring fresh, innovative ideas. And this starts with the location of the brainstorming session.

“It’s easy to auto-default to the same old conference room every time you need to call a meeting,” Atlassian admits. “But our brains love novelty, and being in a new location can also exercise our brain’s neuroplasticity, or our ability to think about things in a new way. By switching up locations, you can improve the quality of ideas that come out of that brainstorm.”

Additionally, factors like lighting (natural sunlight), music (jazz or instrumental tunes), and even aromas (like tangerine oil, frankincense, or clary sage) can all boost creativity.

Supercharge Your brainstorming session.

Hosting regular brainstorming sessions is always a good idea. And if you implement the aforementioned suggestions, you’ll find that your sessions are even more creative and productive than usual. What are you waiting for? Get started today!

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