What happens to your business when you’re ready to step away?
It’s a question many business owners eventually face—yet surprisingly few have a plan in place. In fact, over 60% of family business owners say they lack a formal, documented succession plan.¹
So what’s holding them back?
According to recent research:
- 32% don’t know where to start
- 32% are unsure about their company’s future
- 26% haven’t found a suitable successor²
If this sounds familiar, you’re not alone. To help you move forward with more clarity and confidence, here are 10 essential questions to ask yourself as you begin shaping your succession plan.
🔑 1. What are my long-term goals for the business?
Whether you want to sell, pass it down to family, or transition to employee ownership, having a clear vision helps define your legacy and shape a plan that reflects your values. It also helps preserve your brand’s identity and proactively address future challenges.
🔑 2. Who are the potential successors—and are they ready?
Identify people who are capable and aligned with your company’s mission. Early selection allows time for mentorship and training, building leadership confidence and ensuring continuity when the time comes.
🔑 3. When should the transition happen?
Having a clear succession timeline keeps the process structured and gives everyone involved time to adjust. It also avoids rushed decisions in the event of an emergency or unexpected departure.
🔑 4. What is my business worth?
Knowing your current business valuation helps you set realistic expectations for a sale or transition. It’s also vital for tax planning, retirement funding, and negotiating agreements with successors.
🔑 5. How will succession affect employees and stakeholders?
Any leadership change can create anxiety among staff, customers, and partners. Planning for this helps maintain morale, boost transparency, and ensure continued confidence in your company’s direction.
🔑 6. What are the tax implications of my exit plan?
A well-structured succession plan should also minimize tax burdens for you and your heirs. Strategies like installment sales, trusts, or gifting assets can reduce tax liabilities and preserve more of your business’s value.
🔑 7. Do I want to stay involved in any way?
Will you fully retire, take an advisory role, or stay active part-time? Clarifying your future involvement sets expectations and helps balance legacy preservation with empowering new leadership.
🔑 8. What contingencies are in place for unexpected events?
Life happens. From health issues to sudden exits or market downturns, having emergency plans in place protects your business from uncertainty and ensures leadership doesn’t miss a beat during difficult times.
🔑 9. Do I have the legal and financial tools ready?
To make your succession plan enforceable and smooth, you may need:
- Buy-sell agreements
- Wills or trusts
- Power of attorney documents
These protect all parties, reduce risk of disputes, and provide clarity during key transitions.
🔑 10. How will I communicate the plan?
Clear communication with employees, family, and partners is essential to reduce uncertainty and build support. Transparency promotes trust, reduces confusion, and fosters a positive outlook on the future of the business.
📘 Planning Ahead Starts Today
Succession planning isn’t just about stepping away—it’s about building a path for your business to thrive beyond you. With the right strategies and support, you can lay a foundation for long-term success, protect your legacy, and prepare for a more confident retirement.
And remember, you don’t have to figure it out on your own. Working with an experienced advisor can simplify the process and guide you through the tough questions—so you can move forward with clarity and peace of mind.
Sources
- Bright Strr, 2023 – Family Business Report
- Investment News, 2024 – Succession Study
