Succeed with a Succession Plan

You don’t have to sell to a stranger, nor shut down the whole business. Setting up a succession plans helps you plan for exiting with comfort knowing the business will continue on after you've blown out the candles on your retirement cake. Succession plans can:

Options include:

• Family succession – only if the next generation wants it and is prepared.

• Employee ownership or ESOP – keeps jobs and culture intact.

• Outside buyer – local investor or competitor.

• Partial exit / mentor – step back gradually while grooming someone to take over.\

Key Takeaways on Timing:

• Ideal Timeline: start the day you begin your business.

• Normal Timeline: 3 to 5 years before the planned exit.

• Minimum Recommendation: At least 1 to 2 years for smaller, less complex transitions.

• Long-Term Strategy: 5 to 10 years for complex family transitions or grooming internal successors.

• Emergency Scenario: A minimum of 6–12 months is needed for a rushed, last-minute transition. 

Actionable Steps:

1. Work with a SCORE/SBDC/business mentor- to develop a plan of action.

2. Identify potential successors – even if they’re internal employees.

3. Create a training timeline – overlap can reduce mistakes and build confidence.

4. Record standard processes- write down all the normal processes, reporting, and rules that make your business thrive. 

5. Set clear ownership/decision rules – especially for family or multiple partners.

6. Plan legal & tax details – consult an accountant or attorney early.

Why Acting Matters

Exiting a business isn’t just about you. It’s about employees, customers, and the community you’ve built. Planning ensures:

• Smooth transitions for everyone involved

• Maximum value for your years of work

• Protection of local jobs and tax base

• Peace of mind for your next chapter

Certified Exit Planners are available in the Greater Grand Forks to help your business transition.

• Nicole Evans, SBDC: nicole@ndsbdc.org

• Taylor Monson, Edward Jones: contact