A large number of businesses in Texas are small or family-owned. The success of such a business can depend on the relationships among the owners or family solidarity. Small businesses established through partnerships or family ties can fail if they do not have a well-planned succession strategy in place.
A succession plan is very important since it outlines the process by which the company's leadership deals with the loss of a principal to retirement, sudden incapacitation or death. It also identifies the individual or individuals who will assume responsibility if the former business head can no longer lead. Developing an effective succession plan for a family-owned business may be difficult, however, due to tensions or rivalries within the family. Even if it's difficult to accomplish, it is still a prudent idea to wade through the challenges and get a succession plan in place as early as possible.