As the holidays approach, many business owners find themselves having the kinds of big-picture conversations that don’t always happen in the rush of daily operations. Maybe it happens over a quiet moment between gatherings, or during an end-of-year financial review. But this season has a way of inspiring reflection: what you’ve built, who depends on it, and what the next chapter should look like.

That’s exactly where business succession planning comes in.

Succession planning is the process of preparing for the orderly transfer of ownership and leadership of a business, whether due to retirement, disability, death, or a strategic sale. It protects continuity and helps ensure the organization can thrive long after the current leader steps back. More than simply naming a successor, it involves training, documenting processes, aligning estate and tax strategies, and establishing a clear timeline for transition.[i]

For many owners, their business represents decades of effort and their single largest asset. And without a plan, even a thriving company can quickly lose value or fall into disarray if an unexpected event occurs. A thoughtful succession strategy keeps employees, customers, and partners confident in the business’s future, and helps protects the owner’s wealth and legacy.

Family-Run Businesses Face Unique Challenges

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While all businesses benefit from a clear plan, family-run enterprises experience an extra layer of complexity. Ownership, leadership, and family roles often blur. This can lead to succession decisions which are then tied to emotion just as much as strategy. Questions like Who should take over? and How will ownership be divided? can stir up long-held expectations, unspoken assumptions, and strong feelings.

Unlike non-family firms, which typically make leadership decisions based on performance and organizational fit, family businesses often feel pressure to pass the reins to the next generation. Even if they’re not yet prepared or even interested, this dynamic can create friction.[ii] Whether among siblings, in-laws, or long-tenured non-family employees, anyone may harbor worries about fairness, transparency, or the direction of the company.

Well-run family businesses address this through clear criteria for leadership, open communication, professional governance, and a strong separation of ownership and management roles. This helps to ensure the best person leads the business, regardless of family status.[iii]

Many families also turn to family offices to support these conversations and provide a neutral, highly experienced perspective. A well-structured family office can help coordinate governance, streamline communication between active and passive owners, and ensure that succession decisions align with the family’s long-term mission, not just the needs of the business today. For owners preparing for a transition, a family office often becomes the hub that keeps personal wealth, estate planning, and business strategy moving in the same direction.

What About Non-Family Executives?

More and more family businesses rely on non-family leaders like COOs, CFOs, department heads, or even outside CEOs, to maintain stability and grow the company. These individuals often carry critical institutional knowledge and may be part of the long-term transition plan.

Including them thoughtfully in succession discussions is key.[iv] Whether they serve as interim leadership while the next generation develops, help mentor a future successor, or assume permanent executive roles, clarity is essential. Their involvement needs to be documented and aligned with your broader vision for the company’s future.

This not only strengthens the business but also helps retain top talent who might otherwise seek opportunities with more predictable career paths.

Why Now Is the Perfect Time to Start

It’s no surprise that many owners put off succession planning. Running a business is demanding, and conversations about stepping away can feel uncomfortable or untimely. However, most experts recommend starting the process 5–10 years before a planned transition, and even earlier if family dynamics are involved or if you intend to sell to outside parties.

The holiday season is an ideal moment to begin:

• Family is already together, making it easier to start high-level discussions about interest, expectations, and long-term goals.
• Year-end reflections are fresh, and owners often have better clarity around timelines, retirement readiness, or business milestones.
• A new year invites new commitments, and formalizing a succession plan is one of the most impactful resolutions a business owner can make.

Why Work with a Financial Advisor

Succession planning sits at the intersection of business strategy, tax planning, estate planning, and personal financial goals. It’s not something owners should navigate alone. An experienced financial advisor helps define your objectives, evaluate your options, coordinate with attorneys and accountants, and ensure that the plan protects both the business and your personal wealth.

Most importantly, the right advisor acts as a steady guide. They can bring objectivity to emotional decisions and help the entire process unfold with clarity, confidence, and professionalism.

As you move through the holidays and into a fresh year, consider carving out time to start the conversation. Your future self – and your business – will thank you.

[i] https://firstbusiness.bank/resource-center/business-successtion-entails-important/

[ii] https://www.egonzehnder.com/industries/family-business-advisory/insights/poor-succession-planning-is-a-major-cause-of-problems-in-family-companies

[iii] https://familybusiness.org/succession-planning-for-family-businesses

[iv] https://www.forbes.com/councils/forbesbusinesscouncil/2022/10/06/involving-your-non-family-executives-in-succession-planning/