One type of business planning which is often overlooked is business succession planning. Business succession plans map out the strategy for a company upon the retirement of the current owners.

Business succession planning is typically not necessary for venture backed companies as the plans are built into the venture financing agreements. However, for family-owned businesses, succession planning is critical. In fact, while over three-quarters of American businesses are family-owned, less than one-third of these businesses continue to exist after the first generation of ownership. The downfall is based on lack of planning.

In creating a business succession plan, several key questions need to be answered. For instance, how will the ownership of the business be transferred upon the original owner