Losing, or nearly losing, a close friend or partner is a difficult and emotional time. If you are reading this article, you are coming to terms with a big life change and entangled in deciding the future of their web design or digital marketing business. Here is a guide to help you understand your options and provide information that will structure a smooth transition regardless of your choice.
Need Help?
Navigating business transition after an owner’s death or medical emergency is a complex series of decisions. If you need assistance, our team offers services to help you manage, transition, or sell the web design or digital marketing business. Fill out the contact form on our website to get started.
Making an Informed Decision
Understand Your Options
To identify the best option for transitioning the business, start by evaluating the state of the business. Is there a team in place that can keep daily activities on track? Can you access business information, like bank accounts? Is the business profitable? Next, consider your personal circumstances. How much time can you spend on the business transition? Do you want to be involved in the ongoing business? The state of the business and your personal circumstances will help you quickly decide the path you will follow.
- Continue Operating the Business: Maintaining a profitable business with an existing staff and client base can be a wonderful way to honor your partner. However, this may not be a feasible option if you have full-time employment or a career in an unrelated industry. Web design and digital marketing are skills that individuals take years to develop. Make sure you have the knowledge to benefit the business before deciding to take it over.
- Sell the Business: You can sell the business to another web designer, digital marketing company, employees, or a service provider. This requires research to define what is being sold and time to negotiate an agreement. Depending on the buyer, the return on the transaction might not be worth the effort if the business is too small with little revenue and profitability. However, the right buyer could make it easier and more affordable to exit the business with less impact on the company’s customers and employees.
- Close the Business: If continuing or selling is not feasible, you may need to close the business. Closing a web design or digital marketing business comes with its own list of responsibilities. Before you announce closure, complete reading this article, so that you do not cause irreparable harm to customers.
Regardless of which path you choose, maintaining good connections with current employees and contractors can significantly benefit the business transition. They can help maintain operations and provide valuable insights into the business’s daily activities. Additionally, if you decide to sell or close the business, these resources can assist in ensuring a smooth transition, leveraging their familiarity with the business processes and customer relationships.
Gather Information
Collecting comprehensive information is crucial for any business transition. This includes gathering credentials, identifying key accounts, and ensuring service continuity for customers. Potential buyers will need detailed data such as financial statements, client lists, and operational details. Additionally, providing access to marketing assets, social media accounts, and CRM systems will facilitate a smoother transition.
Main Contacts
- Customer information: Look for a CRM, spreadsheet, or other consolidated resource of customer information including their contact information and current contracts.
- Employees, Contractors: The people who help get the work done are critical to any transition plan.
- Other service providers: Banks, Payroll, Bookkeepers, Accountants, White label services, and other providers are all necessary to running a business.
Discover Business Information
- Document Lines of Business: Web Design, Hosting, SEO (Search Engine Optimization), Advertising, Creative Writing, Graphic Design, Video Production, Social Medial Marketing, Domain Registration, etc.
- Determine Business Size and Legal Registration: Sole Proprietorship, Partnership, LLC, Small Business, Medium Business, State(s) Registration, Federal Tax ID
- Billing Structure: Management/accounts receivable system, recurring invoices, pending invoices, cash/accrual accounting
- Business Assets and Liabilities: Bank Accounts, equipment, software, subscriptions, 3rd party services, prior year tax returns
Important Credentials
- Identify Key Accounts: Domain registrars, hosting services, email services, banking & billing, etc.
- Check for Password Management Tools: Services like BitWarden, LastPass, or NordPass.
- Access Name Server (DNS) Managment: Ensure DNS (Domain Name System) records for email services are maintained.
- Contact Service Providers: Provide a death certificate, Power of Attorney, or other proof of your authority to act on behalf of the business. Here are examples of popular hosting and domain registrars with links to support information on how to gain access to hosting and/or domain names:
- GoDaddy: How to gain access to domains or accounts after account holder’s death.
- Google Domains: Transfer ownership of a deceased user’s domain.
- DreamHost: Gaining access to accounts of the deceased.
- IONOS: Establishing Control of a Domain Owned by an IONOS Customer who is Now Deceased.
- Squarespace: Managing a deceased person’s website.
Prevent Domain Expiration and Service Loss
- Identify Domain Registrations for the business and its customers: Use a WHOIS lookup like ICANN Lookup, GoDaddy.com, whois.com or networksolutions.com.
- Access Domain Accounts: Manage renewals.
- Set Up Domain and Service Auto-Renewal: Prevent expiration.
- Access Client Accounts and Support with Email Providers: Microsoft, Google, Cpanel Email Hosting, Other
- Access Digital Marketing platforms: These platforms can be used for managing social media, email marketing and advertising services for clients.
Understand The Business’ Obligations to Customers
- Review Contracts: Understand the services promised and currently underway.
- Ensure Service Continuity: Ensure services to clients are not disrupted.
Plan the Transition
When communicating your business transition, it is important to include several key pieces of information for both employees and customers. Document why the transition is happening and who will help you in the process.
- Create a Transition Plan: Decide whether to continue, sell, or close the business. Determine your timeline for accomplishing your objective and document why you believe it is the best course of action for the business and yourself. Then, for employees, outline any expected changes to their roles, responsibilities, or employment status. For customers, explain how the transition will affect the services they receive. Use this plan in your communications.
- Seek Professional Help: Consult with business advisors if necessary.
- Document Everything: Keep records of all actions taken and communications.
You have Decided to Continue Operating the Business
Entering the world of business ownership is a big step, and you have some big shoes to fill. Whether you are taking over for a sole-proprietor or running a small business, the transition will take time, and you will experience some bumps along the way.
Assess Your Readiness
- Skills and Experience: Do you have the necessary skills and experience to run the business? If not, consider hiring someone who does.
- Time Commitment: Running a web design or digital marketing business requires a considerable time commitment. Ensure you can dedicate the necessary time and effort.
- Support Network: Do you have a support network of advisors, employees, or contractors to help you manage the business?
- Family Involvement: If other family members also earn a living from the business, this can be a deciding factor in continuing operations. Consider their input and needs.
Steps to Take
- Learn the Business: Understand the key aspects of the business, including client needs, ongoing projects, and financial status.
- Maintain Operations: Keep the business running smoothly by managing ongoing projects and client relationships.
- Hire Help: If needed, hire a business manager or additional staff to help with the operations.
- Notify Customers and Employees: Inform key employees and contractors as soon as possible about the change in ownership. Notify customers once you have your plan in place so that they are aware of the new point of contact.
You have Decided to Sell the Business
The idea of selling may be a relief or feel like you are losing the person twice. If you have an emotional connection to the business, it may be best to hire a company to sell the business on your behalf. Consider selling distinct parts of the business separately, such as digital marketing, domain and hosting services, and web design.
Gather Information a Potential Buyer Needs
- Financial Statements: Profit and loss statements, balance sheets.
- Client List: Details of ongoing contracts and revenue generated.
- Assets and Liabilities: List of business assets and outstanding liabilities.
- Operational Details: Information about daily operations, employee roles.
- Client Contracts: Copies of client contracts.
- Pricing and Revenue Models: How services are priced and the revenue model.
- Website Analytics: Traffic statistics, user demographics.
- Technology Stack: Details on technology and software used.
- Employee and Contractor Agreements: Employment contracts, roles, and responsibilities.
- Marketing and Sales Data: Marketing strategies and sales performance.
Consider Additional Details Buyers Will Ask About
- Access to Company Marketing Assets: Digital marketing materials, branding guidelines.
- Social Media Accounts: Credentials for all social media platforms.
- Local SEO Credentials: Accounts and tools for local search engine optimization.
- Email Credentials: Access to business email accounts.
- Hosting and Domain Management: Credentials for web hosting accounts and domain registrars.
- Customer Relationship Management (CRM) Systems: Access to CRM tools and customer databases.
- Analytics and Reporting Tools: Tools for website analytics and business reporting.
- Subscription and Licensing Information: Details on software subscriptions, licenses.
- Backup and Recovery Plans: Data backup procedures and recovery plans.
Steps to Take
- Determine the Business Value: A common way of valuing the company is a count of customers or websites and the value of their service contracts including recurring services, hosting, maintenance, SEO services, monthly ad management, social media management etc. A more complete picture is generated by a review of the past few years of business net income.
- Maintain Operations: Keep the business running smoothly by managing ongoing projects and client relationships.
- Hire Help: If needed, hire a business manager or additional staff to help with the operations. It may also be helpful to engage business advisors, lawyers, and accountants to ensure a smooth transition.
- Choose a Buyer: Select a buyer that will support you in a smooth transition and continue to provide service to the customers.
- Notify Customers and Employees: Inform key employees and contractors as soon as possible about the plan to sell. Notify customers about the change in circumstances with a reassurance about maintaining their service level. Once you have your sale in place, provide a follow-up so that they hear about the upcoming change in ownership from you.
- Assist in the Transition: The buyer may request additional details. Provide them when requested to ease the staff and customer transition.
You have Decided to Close the Business
As mentioned at the start of this article, even when closing the business there is still a list of responsibilities to consider. Simply walking away is not an option. Other businesses are relying on you, and there are legal statuses that need to be resolved.
Minimizing Costs and Involvement
- Fulfill Obligations: Complete any ongoing projects or find other ways to fulfill contractual obligations to clients.
- Notify Stakeholders: Inform clients, employees, and contractors about the decision to close the business.
Give Customers Control
Many web design businesses offer additional services such as hosting, digital marketing, and consulting. These services are crucial for clients, and their continuity must be ensured:
- Migrate Domain Ownership: Ensure all customer domains are transferred to their control.
- Transfer Email Access and Ownership: Help customers gain access to and control of their email accounts.
- Digital Marketing Services: Ensure any ongoing digital marketing campaigns are accessible to the customer.
- Consulting Services: Transition consulting contracts or ongoing projects to ensure clients receive uninterrupted service.
- Hosting Access to Websites: Transfer hosting accounts and website access to customers.
- Maintain Technology Infrastructure: Continue paying for the technology infrastructure until all customer digital properties are transferred
Steps to Take
- Create a Closing Plan: Outline the steps needed to close the business, including timelines and responsibilities.
- Seek Professional Advice: Consult with legal and financial advisors to ensure all legal and financial obligations are met.
- Sell Assets: Liquidate business assets such as equipment, software, company owned domain names, and intellectual property.
- Cancel Subscriptions: Terminate subscriptions and services no longer needed.
- Settle Finances: Pay off any outstanding debts and settle financial accounts, including with tax authorities.
- Finalize Taxes: File final income tax returns, employment taxes, and sales taxes before closing the business accounts.
- File Dissolution Documents: Ensure that the company is officially closed by notifying local, state, and federal authorities.
- Document Everything: Keep detailed records of all actions taken and communications related to closing the business.
Need Help?
Navigating this situation can be complex. If you need assistance, our team offers services to help you manage, transition, or sell the web design or digital marketing business. We also provide domain, website, and email rescue services to ensure business continuity. Fill out the contact form on our website to get started.
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Additional Use Cases for this Article:
This guide is invaluable for family members who are inheriting the business and need to understand how to smoothly transition ownership and maintain operations.
This article serves as a resource for business owners who want to prepare for unexpected events, ensuring their business can continue operating or be transitioned smoothly in the event of their sudden unavailability.
The article can be used by firms looking to establish or update their business continuity plans, ensuring they have a strategy in place for unexpected transitions due to death or medical emergencies.
The guide can be a helpful resource for professionals advising clients on how to handle the transition of a web design or digital marketing business after the owner’s death or incapacity.
Consultants specializing in business transitions can use this article to train staff or to develop comprehensive transition plans for their clients in the web design or digital marketing industries.
Executors or trustees responsible for handling the estate of a business owner can use this article as a blueprint for managing the transition or closure of a web design or digital marketing business.
This guide can assist HR departments in web design or digital marketing firms in preparing for the transition of leadership or ownership due to unforeseen circumstances.
The article provides potential buyers with a roadmap for what to consider and how to approach the acquisition of a business under transition due to the owner’s death or medical emergency.
Business owners nearing retirement can use this guide to plan the transition of their web design or digital marketing business, whether they intend to sell, close, or pass it on to a successor.
Non-profits that provide resources and support to small business owners can use this article as part of their educational materials to help business owners prepare for and manage unexpected transitions.
The article provides a comprehensive understanding of the key elements and operations of a web design or digital marketing business. This information can help businesses define their needs more clearly when writing RFPs, ensuring they ask for the right services and support during a transition.
By detailing the various aspects of a web design or digital marketing business (like SEO, hosting, and social media management), the article can help businesses outline specific requirements in their RFPs, making sure they cover all critical areas that need attention.
The article’s guidance on maintaining business operations during transitions can inform how businesses structure their RFPs to ensure that potential vendors understand the urgency and continuity requirements during ownership changes.
The article can be used to develop evaluation criteria for RFPs by highlighting the importance of experience in business continuity, transition management, and familiarity with the specific needs of a transitioning web design or digital marketing business.
When crafting an RFP, businesses can use the article’s insights to define a clear project scope, including ongoing support, data transfer, customer communication, and other critical activities needed during and after the transition.
If a business is seeking consultancy as part of the RFP, the article’s sections on seeking professional help can guide the inclusion of consulting services as part of the project deliverables.
The article’s emphasis on documenting transition plans can be translated into RFP requirements, asking potential vendors to provide detailed proposals on how they will manage the transition, including timelines, responsibilities, and communication strategies.