Succession Planning Isn’t Just for Big Companies- Here’s Why Your Small Business Needs One

When you’re running a small business, it’s easy to focus on what’s right in front of you: managing your clients, supporting your team, putting out fires, and meeting your business goals. In all the hustle and bustle of running a business, it’s easy to plan for what comes next, for our team to take a back seat. When a key member of your organization leaves, or it’s time to promote a high-performing employee to a leadership position, businesses can be left wondering, “How do I fill the void?” The absence can create a ripple effect that touches every part of your operation. 

That’s where succession planning comes in – a vital part of business strategy that makes sure your business can keep moving forward when changes happen – because they will. Whether it’s a longtime employee stepping down, a new opportunity pulling someone away, promoting an employee to a new position within your company, or even a personal emergency that sidelines a key team member, having a plan in place ensures your business doesn’t miss a beat. 

The good news? Succession planning doesn’t have to be overly complicated or time-consuming. With a little foresight, you can create a practical, flexible roadmap that protects your team, your clients and customers, and the future of your business. 

What Exactly Is Succession Planning?

Succession planning is about identifying critical roles in your business and making sure there’s a plan in place when those roles become vacant. It can be due to a promotion, retirement, separation of employment, or even an unexpected long-term absence, and includes anyone whose absence would significantly impact operations, client relationships, or internal knowledge about the business. This might include your office manager, who keeps the day-to-day running smoothly, the one team member who knows how to run payroll, or even the head of the business.

At its simplest, it means asking yourself, “If someone key to my business left their role tomorrow – what would we do?” 

Why Small Businesses Are Vulnerable

In bigger companies, there’s usually backup. For example, bigger businesses might have several accounting clerks who could handle the workload of a departing employee in a similar role or a consistent flow of incoming applicants who could make filling the position a swift feat.

For smaller businesses, it’s different. There’s less overlap, fewer safety nets, and sometimes, one person might hold all the knowledge about a certain task or procedure. That’s why having a succession plan matters so much – because when a key player is gone, the impact can be immediate and sometimes severe. It can lead to missed deadlines, confusion within the team, stalled operations, or another team member being overloaded with work.

A succession plan prevents scrambling and helps you switch gears quickly instead of reacting to a potential crisis. 

What Does a Succession Plan Look Like?

1. Spot the Key Roles

Start by asking, “If this person left, what would stop working?” These could be client-facing roles, leadership positions, or people who manage your core systems. For example, if your office manager left, how would you manage scheduling, client communication, and office logistics? 

2. Have the Essentials Accessible

Think about log-ins, vendor contacts, client information, workflows, and processing – there’s a lot that lives in people’s heads. Make sure to get it down and documented – the “how” is important to have at your fingertips, ensuring key information is available to others. This could be creating a simple system to house these resources – a shared drive, task management tool, or standard operating procedure (SOP) document. The more details you capture, the easier it will be for someone to step in when needed. 

3. Evaluate Your Team

Are there people on your team who have the right skills or potential to take on different responsibilities? Even if they’re not ready now, consider what they may need in terms of training, experience, or mentorship to step into that role. Work on engaging in development plans for these employees – it could include shadowing others, taking on small projects, or providing leadership training. These steps help your team members grow while preparing them for potentially different or bigger roles. 

4. Cross Train, Cross Train, Cross Train

Don’t wait until someone leaves to figure out how to keep things running. Cross-train your team members so they can take on different roles if needed. This could mean having an office manager learn some client management tasks or having a team leader train others in technical responsibilities. Doing so creates more flexibility within your team and reduces the risk of stalled operations if someone leaves or is out for a period of time. It can also help foster a more collaborative, resilient company culture.

5. Don’t Forget About the Highest-Level Employee

A business owner, president, or CEO’s role is pivotal – if something were to happen, whether it’s an illness, long vacation, unexpected emergency, or a step down, who would fill their shoes? Does your team know what to do in their absence?

Create a plan for delegating authority and decision-making in their absence. This doesn’t mean you have to hand over the reins permanently, but it can help ensure the business can continue to operate smoothly when your business’s leader is not there.

6. Recruiting and Filling Key Roles

One of the most critical aspects of succession planning is thinking about how you’ll fill vacant roles, whether temporarily or permanently. If an internal candidate isn’t ready, you’ll need a strategy for recruiting external talent. As part of your succession plan, create a network of potential hires – keep track of talented individuals you’ve met at events, job fairs, or through industry connections. When the need arises, you’ll have a pool of candidates to consider.

You may also want to consider working with an HR consulting firm – an external partner can help you find the right fit for your business and ensure a smooth recruitment process while minimizing the time you have to spend on talent acquisition. Creating a job ad, reviewing resumes, and screening candidates can be time-consuming, and an HR consulting partner can help you take this on. 

We’re Not There Yet…

Many small businesses hesitate to start this process. It can feel overwhelming, especially when the day-to-day demands of running a business seem to take up every moment. There are a few common concerns, but they shouldn’t stop you from moving forward.

“We’re too small for that.”

Actually, smaller businesses can feel transitions more intensely. With fewer employees, each person can play a bigger role in your operations, and the absence of even one key person can create a major disruption, making small businesses more vulnerable to the impact of turnover or unexpected absences.

Whether you’re a team of 3 or 30, succession planning helps you build a safety net and ensures your business can continue to thrive if things change. The last thing you want is to be scrambling to replace a vacant role and trying to manage the hiring process under pressure.

“We don’t have time for this.”

Running a small business means you’re already juggling a thousand tasks at once, and taking on succession planning might seem like one more thing on your to-do list. But you don’t have to do this alone.

HR consulting firms like EnformHR specialize in working with small businesses to create practical, streamlined succession plans that fit your unique needs. We’ll help you identify key roles, document processes, and provide guidance on recruiting and cross-training. Whether you need a complete roadmap or just a few targeted steps to get started, we’re here to support you.

“We have a great team – no one’s going anywhere anytime soon.” 

Think your employee who’s been with you for 10 years is in it for the long hall, or the company’s president isn’t planning on retiring anytime soon? It’s great that you have a reliable team, but even the best teams are susceptible to change. People leave for a variety of reasons – unexpected health issues, family matters, or even career opportunities – and that can all create gaps for your business. Even though many employers expect their employees to give a courteous two-week notice, that’s not always the case. Succession planning is about planning for any transition, whether planned or unplanned. It’s about continuity, not reacting to turnover. 

“We don’t have the resources to do this.”

It’s understandable to feel like you don’t have the resources to dedicate to succession planning. But it doesn’t have to be a massive undertaking. The best way to get started is by taking small, manageable steps. You don’t need to have a fully realized plan right away. Begin by identifying one or two critical roles that would have the most significant impact if they were vacated unexpectedly. Focus on documenting essential processes and knowledge-sharing important tasks. Even an incremental approach is a step in the right direction.

Start Planning Today

Succession planning is something every business, big or small, should think about. Starting now will make a huge difference down the road – a solid plan helps protect your business, your team, and creates peace of mind when things change unexpectedly.

Reach out to our team of HR experts to find out how you can start planning for your business’s future today.