Just weeks ago the leadership of the Crystal Cathedral, a Christian ministry founded by Robert H. Schuller back in the 60s, filed for Chapter 11 Bankruptcy protection in the California courts. The leadership of the church, which broadcasts every Sunday morning to over a million people worldwide, has claimed that the financial troubles resulted from the economic challenge of the past two years and the inability of the Church to respond with enough budget cuts fast enough. It is more likely, however, that the very ugly succession fiasco that occurred within the leadership in 2008 is the cause of the financial difficulties and the leadership vacuum in the church.

I continue to be surprised by the number of business owners and partners who believe they do not need to be concerned about maximizing the value of their firm or with succession planning yet.  The truth is that succession planning forces owners and partners of firms to focus on value drivers. When you work on a succession plan, you work to maximize the long-term value of the firm. But all of this attention to management, value drivers and maximizing the long-term value of the firm also has powerful short-term benefits that affect both short-term value and short-term profitability of the firm.

Nobody wants to talk about death, disability or divorce. These are three life events that can impact your plans and the future of the business you own. In fact these are the three events most people think of when the subject of succession planning or buy/sell agreements is raised. But, as I said, nobody wants to talk about these possible events. So, let’s talk about something else.

Let’s talk about the other events that could affect your business ownership, your future, your family, your business partners and the continuity of the business itself. All of these are at risk if you don’t write and fund a comprehensive succession plan or buy/sell agreement. The first thing you need to understand is that these events – the ones people tend to overlook – are far more likely to be the reason you need a succession plan than death, disability or divorce. Without a succession plan, these things could grow from hiccups in the firm’s growth to catastrophes.

If you own or are a partner in a business, you should have a succession plan (or buy/sell agreement or contingency plan) to facilitate a seamless transition for the company in the event of your divorce, disability and/or death. The succession plan should also be adequately funded with a combination of cash reserves and insurance. If there is no succession plan or buy/sell agreement in place and fully funded, you risk the business, your future and your family’s future.

If you are a business owner or you are a partner in a business and you do not have a clear and adequately funded succession plan (or buy/sell agreement) you are putting everything you have worked so hard for at risk. The omission will sit like a ticking time bomb, seldom heard or considered, until it explodes – and then it is too late.