Sucession Planning
What is Succession Planning?
Succession planning is making a plan for who will take over a business or an important leadership role when the current person steps down. It helps keep the business running smoothly and makes sure everyone knows what to do when changes happen.
The Importance of Succession Planning for Small Businesses
Succession planning is critical for ensuring the long-term success and stability of your business. Whether you’re preparing for retirement, transitioning leadership, filling key leadership positions, or selling your company, a structured approach can safeguard your legacy and keep operations running smoothly.
Succession Planning as Part of an Exit Strategy
A strong succession plan is a key part of an exit strategy, ensuring a smooth transfer of leadership or ownership while maximizing business value and minimizing disruption. Succession planning is making a plan for who will take over a business or an important leadership role when the current person steps down. It helps keep the business running smoothly and makes sure everyone knows what to do when changes happen.
Why Succession Planning Matters
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. Yet, many business owners delay planning for the future, often unsure of where to start or how to navigate the process. Without a solid plan in place, businesses risk disruption, financial instability, and even closure when leadership changes unexpectedly.
For many business owners, letting go of the company they built is an emotional challenge. The thought of stepping aside can be difficult, leading to hesitation and delays in planning. Family-run businesses often face additional complexities, as personal relationships and expectations can create tension during the transition process.
Beyond emotional hurdles, some companies struggle with finding the right successor. Without a well-prepared leadership pipeline, businesses can face gaps in knowledge and experience that slow down growth. Additionally, underestimating financial impacts—such as cash flow issues, tax liabilities, and valuation discrepancies—can place a significant burden on both outgoing owners and new leadership.
A well-thought-out succession plan ensures business continuity, protects financial interests, and develops future leaders who can carry the vision forward. By taking proactive steps today, business owners can reduce legal and tax complexities and safeguard the long-term success of their company.
How We Can Help
Whether you’ve got a plan in mind that you want to get feedback on, or if you’re just getting started with your succession planning journey, the RISE team is here to help. We provide guidance and resources to support you at every stage of your business journey, making sure you have the tools and expertise needed for a successful transition.
✅ One-on-One Navigation – Meet with the RISE Navigator team to access local and regional resources. Learn more >
✅ Business Consulting – Have a free advising session with a Longwood SBDC consultant. Get expert business advising >
✅ Leadership Development – Coaching services are available through the SOVA Innovation Hub. Explore coaching >
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.
By proactively planning for leadership and ownership transitions, businesses can safeguard their future, employees, and legacy. Rather than waiting until it’s too late, business owners should take steps today to ensure a smooth succession process.
Succession Planning Resource Hub
Please note that the availability and specifics of these resources may change. It’s advisable to visit the visit the provided websites or contact the resource provider directly for the most current information.
To suggest a resource be added to the RISE Succession Planning Resource Hub, please complete this form >
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