In our new STEIN series, “Seizing Opportunities,” we share our insights on strategies companies can use to achieve long-term success. There may come a time when a business owner is unable to work for an extended period—or even permanently. However, many business owners choose to ignore this possibility. STEIN spoke with a businesswoman who, together with her son, has successfully continued to run their stonemasonry business following the sudden death of her husband.
Whether due to the coronavirus, a traffic or workplace accident, or even a heart attack: business owners can be sidelined very suddenly. According to Statista, approximately 29 to 41 percent of today’s 30- to 50-year-old workers will become unable to work before reaching retirement age. However, a survey by “The Alternative Board” of 165 SME business owners found that 81 percent of companies do not have an emergency plan in place to ensure business continuity in the event of the entrepreneur’s sudden absence. For Michaela Erdmann of the stonemasonry business Steinmetz Erdmann in Bad Berka, Thuringia, the sudden and unexpected death of her husband Thomas—in his late forties—three years ago was also unforeseeable. He was the head of the stonemasonry business, which is now in its fifth generation of family ownership.
Michaela Erdmann had always worked part-time in her actual profession as a business administrator, so her husband was glad that she could help out with certain tasks at the stonemasonry business. “So I was at the company every day and gained valuable insights,” recalls Michaela Erdmann. “I’ve always described my work here at my husband’s business as my personal volunteer commitment—back then for my husband, and today for my son Paul, who has taken over the company. That was a huge advantage for us, especially after my husband’s death.” The Erdmanns had discussed powers of attorney early on, partly because of several family members with Alzheimer’s.
Michaela Erdmann explains: “Fortunately, we agreed on who was authorized to do what, but we hadn’t yet had our arrangements notarized.” The Erdmann stonemasonry business, along with its employees, was in a state of absolute emergency shortly before the boss’s sudden death and for some time afterward. “Despite this extreme situation, on the day my husband underwent emergency surgery, I immediately called the notary, who then came to the hospital. We finalized the general power of attorney right there, because my husband was still of sound mind at that point; afterward, it wouldn’t have been possible. That general power of attorney saved my life both during his illness and in the time following his death.
After all, even the banks won’t budge if you can’t produce a general power of attorney. Accounts are often frozen until the certificate of inheritance arrives, which can take several weeks. I would advise everyone to put these matters in writing with a notary while they’re still in good health,” Erdmann reports. Otherwise, spouses and employees are left helpless and unprepared, and no one knows how to proceed. Even in small businesses, it’s therefore important to clarify: Who does what if the boss is unavailable—and who is authorized to handle certain matters? Because Michaela Erdmann, a business administration graduate, had worked for many years in a bank’s loan department and had witnessed all manner of crises—from the deaths of clients to house fires and divorces—she had a different perspective on these matters than others. And powers of attorney, in particular, were always very important. “After my husband’s death, there were situations in which I used this general power of attorney for both personal and professional matters and gave instructions: ‘This is how it’s done!’”
Read more inSTEIN 9/2020.
