The business is doing well today. But what if you are not there?

My professional insights · Lyudmil Karaulanov · 5 min read

Published: 1 August 2026 · Version 1.0

Sometimes the business's dependence on its owner is most clearly revealed by an attractive opportunity: a month's holiday, time with loved ones, a trip without constantly reaching for the phone. Who will decide if an important customer asks for a change? Who will understand why a particular arrangement was made in that particular way?

These questions do not diminish your success. They show how much you have accumulated in your own memory and relationships. And they provide a good starting point for preparations that will enable the company to keep working when you need, or have reason, to be away.

Is the business working, or are you?

You may carry several roles so naturally that you no longer distinguish between them: negotiating, deciding exceptions, reassuring customers and assessing risk. Separating them reveals what can be delegated, what requires training and what still lacks a suitable replacement.

The value of a business often lies not in its machinery or properties, but in accumulated knowledge:

• how prices are set and which risks are acceptable;
• which customers are vital and what arrangements apply to them;
• which payments are urgent and which employees can take responsibility;
• which relationships rest on personal trust rather than a contract;
• which problems need to be resolved immediately and which can wait.

If this knowledge remains only in the founder's head, it is not an organisational asset. It is a risky dependency. The process becomes resilient only when knowledge is translated into clear rules, defined roles, accessible information and traceable responsibility.

A power of attorney is no substitute for organisation

The authority to sign is necessary, but the person also needs to know what they are signing, within what limits and on the basis of what information. A second managing director or an authorised representative needs access to the history of the relationships and a clear procedure for difficult decisions. Otherwise, the document makes action possible without ensuring readiness to act.

That is why effective cover rests on rules prepared in advance. It helps to be clear about:

• who can authorise a payment and up to what amount;
• who maintains the relationship with the bank;
• who has access to contracts, passwords and key correspondence;
• which decisions can be made independently;
• when a second approval is required;
• who takes over if the deputy is also unavailable.

The second tier of management cannot be created at the last moment. People gradually receive real responsibilities and authority to decide within defined limits, opportunities to make mistakes in a controlled environment and room to build their own authority. The aim is not for the owner to lose control. It is for control to be exercised through a system rather than continuous personal involvement.

Inheritance is only one of the tests

For me, the question of what functioning organisation will stand behind the shares comes before the question of who will receive them. If the organisation loses customers and its ability to make decisions in your absence, formally transferring ownership will not be enough. Preparing for continuity also begins with today's everyday work.

The same test arises when the business is sold, an investor comes in, the founder temporarily steps back or outside management arrives. The more the company depends on a particular owner, the harder it is to transfer, value and sell as an independent enterprise.

Where is the point of instability?

What this concept means →

It lies in the difference between good current results and the ability to sustain them without one particular person. This is not necessarily visible in the accounts, because the owner is still in place.

A limited absence, prepared in advance, usually reveals which decisions stop. The valuable step is to use what has been learned to transfer knowledge and authority. This gradually creates greater security for the company and greater real freedom for the owner.

This material is of a general analytical nature and does not constitute individual legal, tax, financial or investment advice.