The Heart Attack Letter is a personal business continuity document designed to provide immediate, actionable instructions if a business owner is suddenly incapacitated or dies. This organized roadmap minimizes chaos, maintains ongoing operations, and ensures the financial stability of the business and the owner’s estate. It serves as a single source of truth for a designated trusted party, enabling them to step in quickly and make informed decisions without delay. The document acknowledges that the most significant risk to a small business is often the owner’s inability to manage it.
Understanding the Purpose of the Heart Attack Letter
The primary function of this document is rapid transition management, ensuring the business can continue operating during a personal crisis. By consolidating necessary data and procedures, the letter prevents key operations from halting, which is important for time-sensitive tasks like payroll or client deliverables. The goal is to facilitate an orderly transfer of temporary authority to a designated agent, keeping the business solvent while minimizing financial disruption.
This preparation provides a detailed, organized plan ready for instant use. A well-constructed letter ensures that bills are paid, client relationships are maintained, and valuable assets are not locked up behind passwords. The document acts as an instruction manual for the business’s basic functions, allowing the designated person to manage the immediate aftermath of a crisis rather than spending weeks locating essential information.
Identifying Who Needs This Contingency Planning
This contingency planning is important for individuals whose knowledge and control are highly centralized within their enterprise. Solo-preneurs, freelancers, and small business owners who operate without a deep bench of management are the primary audience, as their sudden absence can instantly paralyze operations. The business often depends entirely on the founder’s presence for client communication, sales, and execution.
Founders and key executives in small to mid-sized firms should also create one to mitigate the risk of “key-man dependency.” When a single person holds all the digital keys, vendor contacts, and financial oversight, their incapacitation creates a catastrophic information vacuum. The letter provides a structured way to transfer knowledge, protecting the venture’s value and ensuring employees can continue their work under temporary management.
Key Information to Include in the Document
This section must be detailed, serving as a comprehensive checklist of all data required for another person to take over business functions immediately. The information should be organized and specific, focusing on the location of documents and the exact steps to access systems.
Business Access and Operations
The access section must detail all digital gateways necessary to run the day-to-day business. This includes login credentials for primary systems and instructions for maintaining the supply chain and ongoing projects.
- A secure list of login credentials for the primary business email, website hosting platform, and any Content Management System (CMS) used to update the site.
- Passwords for Customer Relationship Management (CRM) software, project management tools, and all actively used social media accounts.
- A complete roster of vendor and supplier contacts, along with their payment terms and account numbers, required to maintain the supply chain.
- Instructions for all ongoing projects, outlining the client name, current project status, upcoming deadlines, and the location of associated working files.
- All software license keys and the renewal dates for paid subscriptions, such as industry-specific applications or cloud storage services.
Financial Accounts and Assets
The financial component must offer a clear picture of the business’s current fiscal health and its immediate obligations. Instructions for managing payroll and accounts payable are necessary to ensure employees and vendors receive timely payments.
- A precise listing of all business bank accounts, investment accounts, and lines of credit, including the financial institution name, account numbers, and the name of the designated relationship manager.
- Details of all outstanding business loans, mortgages, or lease agreements, noting the payment schedule and contact information for the lender.
- Documentation of all business insurance policies, such as general liability, property, and business interruption insurance, including policy numbers and the agent’s contact details.
- A comprehensive list of all monthly and annual auto-debits from the primary operating account is also essential for auditing and control.
Legal Documents and Contacts
The legal section directs the agent to the location of all foundational corporate records and professional support. This ensures the designated agent can obtain qualified legal and financial counsel before making any significant decisions.
- The physical or digital location of business formation documents, operating agreements, and any intellectual property filings, such as trademarks or patents.
- Copies of current commercial leases, service contracts with major clients, and non-disclosure agreements.
- Full contact information for the company’s professional service team, including the corporate attorney, the Certified Public Accountant (CPA), and the financial advisor.
- Providing the name of the internal or external bookkeeper is also important for managing immediate cash flow.
Establishing Necessary Legal Structures for Execution
The information contained within the Heart Attack Letter is merely data; it holds no legal power to authorize action on its own. To execute the instructions, a business owner must establish the proper legal mechanisms that grant a trusted party the authority to act.
For managing affairs while the owner is alive but incapacitated, a Durable Power of Attorney (DPOA) is required, which grants the agent the legal right to transact business and access accounts. In the event of the owner’s death, a Will or Revocable Living Trust determines the distribution of business assets and names the Executor or Trustee. For businesses with multiple owners, a Buy-Sell Agreement dictates how a deceased or incapacitated partner’s shares will be valued and transferred.
Proper Security and Maintenance Protocols
Due to the sensitive nature of the information, the Heart Attack Letter requires disciplined security and maintenance protocols. The physical document should be stored in a fireproof home safe or a secure bank safe deposit box, with the designated executor having access to the location or the key. For digital copies, the file should be encrypted and stored in a secure digital vault or a password manager.
The document is a living document that must be updated regularly to remain useful. A protocol should be established for reviewing and revising the entire letter at least semi-annually, or immediately following any significant business change. The designated agent must be informed of the letter’s existence and its secure location, but they should only be granted access when the contingency event occurs.