Developing a Succession Plan for Your Advisory Business

Trivia Question❓

Roughly what percentage of U.S. small business owners are operating without a formal succession plan?

Answer at the bottom of the newsletter

Developing a Succession Plan for Your Advisory Business

Every advisory business, no matter how successful, eventually faces a pivotal question: What happens when you're ready to step away? Developing a thoughtful succession plan ensures that your life's work continues to thrive while protecting your clients and team during times of transition.

A strong succession plan is not just about naming a successor—it’s about identifying the right person or team, transferring trust and knowledge over time, and building systems that support continuity. Whether you're considering internal promotion, a merger, or an external sale, your plan should reflect the unique culture, values, and service model that define your firm.

Start by assessing your long-term goals: Do you envision a gradual transition over several years, or a more immediate hand-off? Who on your team demonstrates the leadership, commitment, and alignment needed to take the reins successfully? If an internal successor isn’t immediately clear, you may want to explore partnerships or external candidates who share your philosophy and standards of care.

Equally important is preparing your clients and staff. Documenting core processes, introducing key team members into client relationships, and communicating early and often will ease uncertainty and reinforce trust. Build in time to mentor your successor and create a timeline with clear milestones.

The best time to plan is well before you intend to leave. Begin now, while you have time to guide, shape, and strengthen the next generation.

Succession is not an end—it’s a beginning. The right plan ensures it’s a strong one.

Your Advisor's Edge Team

💡 Answer to Trivia Question:

Approximately 78%