There’s nothing charming about chaos when a key owner or manager suddenly leaves a company. If you run a small business, it’s tempting to put off planning for the day you might step back. After all, there’s always another to-do or a fire to put out. But waiting until something forces your hand can unsettle your team and put the business’s future at risk.
Succession planning isn’t just a fancy term for what giant corporations do. It’s something even the smallest companies should consider. Basically, it’s a process for figuring out who could one day take the lead, and making sure they’re prepared when the time comes.
Why Small Companies Should Think About Succession
For most small businesses, the owner is the business. Maybe you’re the only person who knows how the books work. Or, there’s just one person with the key customer relationships.
If someone like that leaves – or even just goes on a long vacation – things can stall. Sometimes businesses even close. That’s why lining up the next wave of leaders is so important, even if you aren’t planning on leaving soon.
It’s not about replacing yourself right away. Succession planning can also help you spot gaps in your team and prepare for unexpected absences.
Spotting Tomorrow’s Leaders
Maybe you already have someone in mind who could lead someday – a family member or a long-time manager. Or maybe you don’t. Either way, it pays to observe your team closely.
Look at how your team members solve problems, work with others, and handle pressure. Some people have strong technical skills but may not enjoy managing others. Others quietly support everyone and have the type of personality people want to follow.
Don’t focus just on experience or seniority. Sometimes the best future leader is someone who asks a lot of questions or takes initiative in small ways.
Figuring Out What the Business Will Need
It helps to think about where you want the company to go in the next five or ten years. Will you add new products or try to reach a different group of customers? Or will you double down on what you do best?
When you know the company’s direction, it’s easier to know what kind of leader you’ll need. Maybe you want someone who’s strong with numbers, or has a knack for marketing, or who understands how your business is changing.
Set some clear objectives for the leadership change. For example, maybe you want to keep the culture the same, or maybe you want a leader who can introduce some new ways of working.
Building Skills So People Are Ready
Training doesn’t have to mean costly retreats or business school. For small businesses, “learning by doing” is a great way to get people ready. That can look like letting someone run a meeting, or putting them in charge of a project.
Mentoring is underrated. Just having regular check-ins where you talk through challenges with a potential successor can make a huge difference. Sometimes, outside courses or local business groups can help too.
Look for chances to let people stretch outside their comfort zone but don’t set them up to fail. Start small and build more responsibility over time.
Putting a Plan on Paper (or a Shared Drive)
You don’t need a fancy binder, but you do need something written. List out the key roles that need a successor. Write down who could step up, and what they still need to learn before they’re ready.
Talk with others who have a stake in the business. If it’s a family company, that might be relatives. For other businesses, it could be a co-owner or even trusted employees. Getting their buy-in early makes things easier later on.
Come up with a simple timeline. Maybe someone will shadow you for a year before taking over. Or maybe the plan is to bring in someone from outside when the time comes.
Telling the Team (Without Freaking Anyone Out)
Once you have a rough plan, it’s time to talk about it. People worry when they hear the word “succession” – they wonder if someone’s leaving now or if their job is in danger.
Be upfront. Tell your team that succession planning is just about making sure the business is always ready, no matter what. Lay out the basics of the plan, who’s involved, and the reasons behind it.
Let people ask questions. Share as much as you can – within reason – so everyone feels in the loop. That way, the plan starts to feel less mysterious and more like a practical part of running the business.
Getting the Plan Up and Running
Now you have to actually do the work. Make sure everyone knows their responsibilities in training or mentoring future leaders.
Check in regularly. Maybe it’s every quarter, maybe every six months. Are people making progress? Has anything in the business changed that would affect the succession plan?
It’s easy to let these reviews slide, but treating the plan like any other important project helps keep things on track.
Does the Plan Work? Time to Check In and Adjust
After a while, it’s good to take a hard look at how things are going. Did someone step up when you were out sick? Were they prepared? Are the people you identified still the right choices?
Businesses change. People change roles. Sometimes, someone who seemed perfect for leadership decides they want a different path. That’s okay. Mark where things have shifted and update the plan.
Adjust the plan as needed. Maybe another role is now more important, or there’s a new skill set you need to develop within the team.
Common Sticking Points for Small Businesses
Most small companies face similar problems with succession planning. One is just time – the owner or manager is stretched thin, and preparing others feels like extra work.
Money can also be an issue. There’s not always a budget for formal training or to bring in consultants. Some owners are also reluctant to talk about stepping back. It can feel personal, or like admitting you won’t be there forever.
The key is to keep the process simple and keep the conversation going. Start small and build. Use internal mentors, free resources, and peer support. Even a little structure is better than none.
When Small Companies Get Succession Right: Real Examples
Jamie Patterson runs a thirty-person construction firm in Ohio. He started off having his site manager shadow him once a week, talking through estimates and project plans. Over two years, the site manager eventually started running his own smaller jobs. When Jamie took a month off for health reasons, the business didn’t skip a beat.
Another story comes from a family bakery in the Midwest. The owner’s daughter wasn’t sure she wanted to take over, so the family invited her to do just a few manager-level tasks at first. They kept checking in and made it clear there was no pressure. Five years later, she’s fully in charge and the business is still growing.
It’s not always smooth. At ufabetventurem3.com, the original founder realized too late that he hadn’t passed along key customer knowledge. When he took extended time off, even the best plans couldn’t fill in those relationships right away. The takeaway: start the handoff early, even if it feels awkward.
Wrapping Up: Where Small Businesses Stand Now
Succession planning isn’t about fancy charts or endless paperwork. It’s just about making sure someone’s always ready to step up if needed.
You don’t need to have all the answers. But talking about it with your team and writing down a simple plan makes facing the unexpected much easier.
For small companies, it’s less about perfection and more about steady progress. No one wants surprises that leave the whole business wobbling. A bit of groundwork now can keep everyone focused on what matters most – keeping your business running well, whatever comes next.