Every small business owner dreams of building something that lasts. Yet, many fail to consider one of the most critical aspects of long-term success: succession planning. Whether planning for retirement, transitioning ownership to a family member, or selling the business, preparing for leadership and ownership changes is essential for continuity and stability.

According to the U.S. Census Bureau, over half of U.S. business owners were age 55 and over as of 2019, making succession planning more critical than ever. A 2021 PwC Family Business Survey also revealed that only 34% of family-owned businesses in the U.S. have a documented succession plan, highlighting the widespread lack of preparation.

Below, we highlight five reasons to start succession planning for small business. 

four people at a table business planning

1. Ensure Business Continuity

Without a clear succession plan, businesses risk operational disruptions when leadership changes. A structured plan ensures a smooth transition, maintaining stability for employees, customers, and other stakeholders.

2. Protect Financial Stability

A well-prepared succession plan helps maximize the value of a business. Planning ahead allows owners to structure the transition in a way that minimizes financial risks, ensures liquidity, and provides long-term financial security.

3. Develop Future Leaders

Investing in leadership training helps prepare successors for their roles. By identifying and mentoring key individuals, businesses can build a strong leadership pipeline, ensuring future success.

4. Mitigate Risks and Uncertainty

Unexpected events, such as illness or economic downturns, can derail a business without a transition plan in place. Succession planning helps business owners anticipate and manage risks before they become crises.

5. Preserve Your Legacy

Succession planning allows business owners to define how they want their company’s values and vision to continue. A thoughtful transition ensures the business maintains its original purpose and community impact.

Getting Started

The best time to start succession planning is now—whether the transition is years away or just beginning to take shape. Engaging advisors, documenting a clear vision, and building leadership from within creates a sustainable future for the business.

For help getting started, visit our succession planning resource hub >

Interested in diving deeper into succession planning? SCORE is hosting a free webinar on succession planning on February 18, 2025.  Register on the SCORE website >