October 15, 2025
Why Every Small Business Needs a Succession Plan (Even If You’re Not Retiring Soon)
Why Every Small Business Needs a Succession Plan (Even If You’re Not Retiring Soon)
Running a small business takes vision, hard work, and grit. Whether you've built your company from the ground up or inherited a family legacy, you’ve probably poured your time, money, and heart into it.
But here’s the truth many small business owners avoid: what happens to your business when you're no longer running it?
Business succession planning might sound like something only big corporations worry about, but it’s just as important — if not more so — for small businesses. Without a plan in place, everything you’ve built could be at risk.
Let’s walk through what succession planning really means, and how you can start preparing today — even if you’re not ready to step away yet.
What Is Business Succession Planning (for Small Businesses)?
Succession planning is simply the process of figuring out who will take over your business — and how — when you're no longer able to run it due to retirement, illness, unexpected events, or a planned sale.
It’s not about giving up control. It’s about protecting your business, your employees, and your family’s financial future.
Why It Matters for Small Business Owners
- You're the Business
In many small businesses, the owner wears multiple hats. If you suddenly couldn’t work, what would happen to daily operations? A plan ensures continuity, even in emergencies.
- Family or Team May Be Counting on You
Whether you plan to pass the business to a family member, a business partner, or a trusted employee, having a plan removes confusion and prevents conflict.
- Life Is Unpredictable
Succession planning isn’t just for retirement. What if you had a health issue or needed to step away suddenly? Planning now gives you — and your loved ones — peace of mind.
- It Adds Value
If you ever decide to sell the business, having a succession plan in place can increase its value and make it more attractive to buyers.
5 Getting Started With Your Succession Plan
Creating a succession plan doesn’t need to be overwhelming – but it does require the right approach. From identifying internal vs. external successors to addressing legal and financial considerations, there are important steps to take that will look different for every business. Having the right guidance ensures your plan is realistic, thorough, and tailored to your goals.
Common Roadblocks (and How to Get Past Them)
🛑 “I’m not ready to retire.”
✅ That’s okay — planning now doesn’t mean stepping away. It just gives you options for the future.
🛑 “I don’t have a successor.”
✅ You’re not alone. Many small business owners begin by identifying and training someone over time. You can also explore selling when the time comes.
🛑 “It’s too expensive or complicated.”
✅ It doesn’t have to be. A basic plan with a few key documents is better than nothing — and can save you and your family from major headaches down the road.
Final Thoughts: Don’t Leave Your Future to Chance
As a small business owner, you’ve already beaten the odds — now it’s time to make sure your business can thrive without you.
Succession planning isn’t about walking away. It’s about being a smart leader and making sure everything you’ve built continues to grow — whether you’re running it or not.
Start small. Start now. Your future self (and your business) will thank you.
Ready to Protect Your Business’s Future?
Reach out to Welgaard CPAs & Advisors. Our team can help you create a clear, customized succession plan designed to fit your unique situation. Reach out today to get started.