Solopreneur’s Exit Strategy: Prepare for the Unthinkable
If you are a small business owner, a freelancer, or a “solopreneur,” you know exactly who the most critical asset in your company is. It’s you.
You are the CEO, the marketing manager, the customer service agent, and the head of finance. Your business exists in your head, on your laptop, and in your personal relationships with clients.
But here is the hard question we rarely ask in business coaching sessions: What happens to your business if you don’t wake up tomorrow?
For corporate CEOs, there is a board of directors and a succession plan. For us? Usually, there is just a laptop password that nobody knows and a list of clients who will wonder why you are “ghosting” them.
As I touched on during my interview with Cape Talk, the “In Case of Death” conversation isn’t just for grandmothers with antique furniture. It is critical for modern entrepreneurs who want to protect their professional reputation—even after they are gone.
Solopreneur’s Exit Strategy: Prepare For The Unthinkable 1
The “Bus Factor” of One
In the tech world, they call this the “Bus Factor.” If you were hit by a bus today, would your business survive? Or would it immediately collapse into chaos?
If you are a wedding photographer, who tells the bride you won’t be there on Saturday? If you run an online store (like I do!), who logs into the backend to fulfill the orders that were paid for last night?
If you haven’t documented these processes, you risk leaving a legacy of angry clients and legal disputes. Your grieving family won’t just be dealing with your loss; they will be dealing with your refund requests.
When I designed the In Case of Death Planner, I made sure to include a dedicated section for Business Administration. This is the “Operations Manual” your family needs to either keep the lights on or wind the business down gracefully.
1. The “Ghosting” Crisis
Imagine a client has paid you a 50% deposit. You pass away. They don’t know. They email you. No reply. They call. Voicemail. They get angry. They go to social media to complain that you scammed them.
The Fix: Your planner must list your active clients and the “Emergency Auto-Reply” instructions. A trusted person needs to log in to your email immediately to set up an automated response explaining the tragic circumstances. This turns potential anger into sympathy and patience.
2. The Frozen Business Account
If you are a Sole Proprietor, your business bank account is often frozen the moment your death is reported to the Master of the High Court. This means staff cannot be paid, and suppliers cannot be settled.
The Fix: Your planner needs to list your recurring overheads and staff payroll details so your executor can make urgent arrangements with the bank or bridge the gap.
3. The Digital IP Lockout
For many of us, our “inventory” is digital. Graphic design files, manuscripts, code, or client data. If this is stored on a cloud drive that uses 2-Factor Authentication linked to your locked phone, that value is lost forever.
The Fix: As mentioned in the EWN article, providing access to email and cloud storage is the only way to preserve the value of your intellectual property.
Navigating Home Affairs is hard enough on a good day. Don’t make your family do it without the right paperwork. We have compiled the definitive list of SA-specific requirements.” 👉 Read the Ultimate South African Guide to Death Admin.
It’s Not Just a Will, It’s a Handover
A Will says: “My daughter gets the shares in my company.” The Planner says: “Here is the login for the CIPC portal, here is the SARS eFiling password, and here is the contact number for our supplier in Cape Town.
See the difference? The Will grants ownership; the Planner grants capability.
Featured on Cape Talk 📻
“It covers more logistical, practical things that we tend not to think of… giving families access to all the information they need to handle your estate in a much more calm way.”
As entrepreneurs, we take pride in our work. We obsess over customer experience. We build brands based on trust.
Preparing an exit strategy is the ultimate act of professional responsibility. It ensures that even in your absence, your business is handled with dignity. It ensures your clients are treated with respect, your staff are communicated with clearly, and your years of hard work aren’t undone by a few weeks of administrative silence.
You have built something beautiful. Don’t let it end in confusion.
Protect Your Business Legacy
Don’t leave your hard work to chance. Download the guide that helps South African entrepreneurs organise their exit strategy.
