Small businesses are the backbone of the American and global economies. In fact, over 99% of American firms are small businesses, and there are currently around 400 million small businesses worldwide.1 March 29 is a day that we acknowledge small business owners everywhere by celebrating National Mom and Pop Business Owners Day.
Small businesses serve as the backbone of our economy. And if you run a family business, you understand the importance of preparing and communicating openly with those who are slated to take the reigns one day. Family businesses actually account for 64 percent of the U.S. Gross Domestic Product (GDP), yet 43 percent of family businesses have no formal succession plan. With the day-to-day demand business owners experience, it’s no surprise that succession planning tends to get put on the back burner. Nevertheless, neglecting to focus on succession planning can put business owners and their family members at risk.
