Business succession planning should ideally begin years before you expect to transition out of your business. Starting early gives you greater flexibility to evaluate your options and prepare for the financial, operational, and personal aspects of a transition.

Succession planning may involve identifying who will take over the business, determining whether a sale is appropriate, or developing another transition strategy that aligns with the owner’s goals. It may also include valuing the business, preparing potential successors, addressing ownership and control considerations, and evaluating the potential tax and estate-planning implications of the transition.

For many business owners, this represents a significant portion of their personal wealth. As a result, a succession plan should consider not only what happens to the business, but also how the transition fits into the owner's broader financial and retirement goals.