What Is Family Business Succession Planning?

Each year during National Small Business Week (May 4–10, 2025), we celebrate the hard work, dedication, and innovation of America’s small business owners. These entrepreneurs are the backbone of the economy, driving job creation and community development—especially in towns like San Antonio, where family-owned businesses shape the local culture and economy.

While building a successful business takes years of grit and vision, preserving that success for future generations takes something else: a solid succession plan. As a business planning firm, McCammon Law helps business owners protect their life’s work by crafting tailored strategies for smooth transitions—whether to a child, trusted employee, or outside buyer.

If you're a small business owner in San Antonio or the surrounding area, now is the perfect time to ask yourself: What will happen to my business when I step away?

Why Family Business Succession Planning Is Essential

Owning a business is not just a career—it’s a legacy. But without a formal plan for leadership transition, your legacy can unravel quickly. Only about 30% of family-owned businesses have a robust succession plan in place. That means the majority are vulnerable to conflict, financial instability, or even closure when the unexpected occurs.

A well-designed succession plan addresses:

• Who will take over and when

• How ownership will transfer

• Tax consequences

• Income planning for retiring owners

• Roles of family members or key employees

Without this level of clarity, even close-knit families can face conflict.

Learn from Murdoch’s Mistakes

Consider the high-profile case of media mogul Rupert Murdoch. As the founder of News Corporation, Murdoch built a global empire, which includes influential media outlets, like The Wall Street Journal and Fox News.  Although he created a succession plan, its lack of clarity led to public legal battles among his children. The fallout damaged both the company’s reputation and family relationships. This is a cautionary tale for businesses of all sizes: without clear communication and realistic expectations, even a thoughtful plan can fail.

The Emotional Challenge of Letting Go

Many small business owners view their companies as their life’s work. Passing the torch often brings up fears—of losing control, choosing the “wrong” successor, or causing tension within the family. These emotional roadblocks are real and valid.

But the alternative—having no plan at all—is far worse. Without a designated leader or structure, your business may falter during a time of crisis. Employees could leave, clients may lose trust, and your family might struggle to maintain what you built.

That’s why working with a qualified business planning lawyer in San Antonio is so important. At McCammon Law, we help guide the process from a place of experience and objectivity—so you can make decisions based on strategy, not stress. Read more in our article, Why Business Succession Planning Matters

What Does a Strong Succession Plan Include?

Creating a succession plan doesn’t have to be overwhelming. Here are the steps we recommend:

1. Define Your Successor

Will ownership pass to a family member, key employee, or outside buyer? Consider both business skill and emotional maturity when choosing who will lead.

2. Build Your Advisory Team

Your team should include:

• An estate or business planning attorney

• CPA

• Financial advisor

• Insurance agent

• (Possibly) a business valuation expert

Each professional brings insights that can help you make legally sound, tax-smart decisions.

3. Get a Business Valuation

Knowing the current value of your business is essential for tax planning, future income projections, and ensuring fairness among heirs.

4. Plan for Taxes and Retirement

Estate, gift, and income tax consequences should be reviewed carefully. You’ll also want to ensure the plan supports your lifestyle post-retirement.

5. Create a Transition Timeline

When will your role change? Will you remain as an advisor or step away completely? Communicating this timeline builds trust and prepares your successor.

6. Document Everything

We help you legally formalize your plan with the appropriate documents—buy-sell agreements, business entity updates, trusts, or wills as needed.

7. Communicate with Family and Stakeholders

The sooner you start these conversations, the smoother the process will be. Transparency helps reduce misunderstandings and prevent future disputes.

Protect More Than Just the Business

Succession planning isn’t just about keeping a company running—it’s about safeguarding your family’s financial future and honoring your legacy. For many San Antonio families, the business is more than a livelihood—it’s a tradition. A thoughtful plan ensures it continues to thrive in the hands of the next generation.

Speak with a Business Planning Attorney to Protect Your Business and Family

As we recognize the contributions of small businesses during National Small Business Week, it’s a fitting time to take the next step in protecting yours. Whether you're five years from retirement or just starting to think about the future, it’s never too early—or too late—to begin.

Request a consultation to speak with the San Antonio estate planning team at McCammon Law, who have years of experience helping business owners create and execute a succession plan. Talking about such a plan with family members can often create an emotional response. Working with professionals who benefit from a lack of emotional connection to the business will help the process be less about feelings and more about business.

Key Takeaways

• Only 30% of family-owned businesses have a succession plan in place.

• Lack of planning can lead to conflict, court battles, or business failure.

• A clear plan outlines leadership, timelines, financial impacts, and tax strategies.

• Work with a business planning professional to remove emotion and ensure legal strength.

• Start planning early to protect your legacy and support a smooth transition.

References: MSN (March 28, 2025) “Learn From Rupert Murdoch’s Errors—Create a Succession Plan Today to Protect Your Company’s Legacy” and U.S. Small Business Association, "National Small Business Week"