Getting a temporary caretaker for your business

If you are thinking of getting a temporary caretaker to run your business for a while think about these points;

Contingency planning

What ever the reasons are for engaging a business caretaker or locum, be it to go on holiday,or because of a medical or other emergency such as a  sudden family crisis,do your research first. Where to start?

Use experts to find the right person

Getting a caretaker is  a serious step. You will be putting your trust in this person to take care of  your business so that it keeps running efficiently and

profitably. It is not a matter of simply employing another member of staff. Handing the job to an employee is not always wise.Who will do their job while they cover for you? If they can?  And why should they know about the confidential workings of your business?

Rather consult an expert like your accountant or lawyer or business adviser who will guide you to a suitably qualified business caretaker.

Create your Critical Information List

This is exactly what it says. It lists all the most important things about your business so that your business caretaker can access vital information while you are away;

  • Business Details; Business Name,Australian Business Number(ABN) Tax File Number(TFN)
  • Business Personal Details; Directors, Partners, Accountants, Lawyers etc
  • Business Bank Details; Bank,Account No; Loan arrangements, Person to contact etc

Many other things like insurance company,property lease,rentals,important staff members and many more,

Before engaging a Business Caretaker;

Ask for a Letter of Engagement. This will outline exactly what duties you expect him to perform,the period of engagement and the fees to be paid and other services such as sending periodic progress reports to you while you are away.

Send both this and your Critical Information List to your accountant so that he can monitor performance on your behalf if necessary.

Organise meetings with people who will be immediately affected by the change to a caretaker eg business partners,bank managers,suppliers and key customers and clients.

Finally, call a staff meeting,explain why a caretaker is needed, specify the period and ask them for their support while you are away.

Handover of the business;

Get position descriptions for all critical staff so that both they and the caretaker are aware of individual responsibilities.

The above information is far from complete but simply provides some guidelines to consider when engaging a business caretaker.

For further information on any of the above eg examples of Critical Information Lists or Letter of Engagements please contact;

This email address is being protected from spambots. You need JavaScript enabled to view it.  or  Mob 0402 815005