By David Grau Sr., JD

This blog post continues thoughts from my newsletter, Beyond the Founder (Sept. 22nd, 2026 – No. 8). Please subscribe to this free newsletter if you haven’t already at: www.davidgrausr.com

A business can provide a good living for its founder and still need considerable preparation before someone else can lead and own it. Succession planning gives owners time to make those changes while they can still guide the process. JP Morgan Chase’s recent small-business report and a proposed federal succession-planning bill have brought fresh attention to the issue. For a small business owner, the practical questions are what support may become available and what work should begin today inside your business.

What the Small Business Succession Planning Act would do

[continued from Newsletter…] The Small Business Succession Planning Act is a real proposal, but it is not an enacted law. The current House bill, H.R. 9051, was introduced May 29, 2026, by Representative Jason Crow, with Representative Andrew Garbarino as a cosponsor. As of September 16, the latest recorded action is a referral to the House Small Business and Ways and Means committees (Official bill record).

The bill’s impact and its incentives appear to be modest, but it is certainly a step in the right direction. Organized support at the federal level on this important topic can lead to better understanding by not only small business owners, but all those who support their efforts and prosper from good transition planning.

Personally, I welcome efforts to make succession planning more accessible. A practical toolkit could help an already too busy small business owner better understand the process and quickly find a useful starting point – or at least know what questions to ask. The substantial work, of course, still takes place inside the business: preparing someone to lead, deciding how and when ownership will change and making the economics work for everyone involved.

Build a business another person can own

Over more than thirty years working with small business owners, I have learned that succession becomes more manageable when it is treated as part of building the business rather than primarily an end game strategy.

Consider a growing business in which the owner approves every important decision, maintains the key customer relationships and carries most of the operating knowledge in their head. That business may provide an excellent living to the founder, yet a prospective successor has to ask what will remain when the owner reduces their involvement.

The answer improves when knowledge is documented, customer relationships are shared and capable people have meaningful authority. Financial records need to explain how the business earns money and what it costs to operate, including the work the founder currently performs.

For example, suppose a founder plans to reduce their hours substantially in five years. They could begin this year by having a capable employee lead customer review meetings, documenting a recurring service process and assigning responsibility for a small operating budget. Each step creates a chance to learn while the founder is still available to coach.

This is the practical starting point of The Founder’s Treadmill: reducing the business’s dependence on one person. It also improves the owner’s choices today. A stronger team can make it easier to take time away, focus on the work you enjoy and remain an owner longer if that is what you want. In fact, I wrote The Founder’s Treadmill as a prequel to Building With the End in Mind.

Prepare the next owner as well as the business

An internal succession requires one or more next gen prospects who want the responsibility and can grow into it. A loyal employee may become an excellent successor, but loyalty alone does not establish readiness to lead or willingness to invest and take on the risk of small business ownership.

Future owners need opportunities to make decisions, understand cash flow and accept accountability for results. They also need a candid discussion about ownership. Do they want it? What would they be buying? How is it valued? How could a purchase be financed while leaving enough money in the business to operate and invest?

Those questions need to be addressed early in the process. Naming a successor without discussing expectations can leave both sides of the process working toward very different futures.

That is why my book, Acquiring Your Future…, addresses the next generation’s side of the conversation. Building With the End in Mind approaches it from the current owner’s perspective: building a valuable, sustainable business while preserving alternatives. Together with The Founder’s Treadmill, the books address the preparation required on both sides of an ownership transition.

An internal succession may suit your goals. A family transfer or an outside sale may fit better. You may prefer to remain small, strengthen the business and continue owning it. Early preparation gives you more time to evaluate those choices honestly and provides you with options.

Five questions that turn intention into a starting point

Set aside an hour, please, and write down your answers to these questions, and date your document  for future reference. Be specific about what you know and what still needs work:

1. What do I want my role to look like in five years? Consider your hours, responsibilities, income needs and continuing ownership.
2. If I could not work for the next month, who would keep the business running? Identify the decisions, relationships and information that still depend on you.
3. Who could realistically lead and own the business after me? Include whether that person has expressed interest and what preparation they would need. Perhaps the short list includes a son or daughter, or a person that you still need to hire and train.
4. What earnings could the business sustain after paying others to do my work? This helps distinguish the income you earn through personal effort from the earnings another owner could expect.
5. How could an ownership transition be paid for? Identify the financial questions you need to explore with your accountant, lender and other advisers before assuming a buyer or successor can afford the plan.

Then choose one concrete step for the next ninety days. It might be documenting a critical process, beginning a conversation with a potential successor or reviewing your financial information with a qualified adviser. Give that step an owner and a date.

The goal is to replace an indefinite intention with visible progress.

A conversation about your next step

You do not need a finished plan to ask for help. You may be weighing an internal succession, considering an eventual sale or simply trying to make the business less dependent on you.

I offer small business owners a free, confidential 30-minute consultation to discuss their circumstances, questions and possible next steps. No sales pitch. Bring the situation as it is, including the parts you have not figured out. I’m kind of retired now, having executed my own succession plan. Maybe I can help you.

To be clear, thirty minutes will not create or launch your succession plan, but it can help you identify where to begin.

Request your free 30-minute consultation

The best time to prepare your business to continue beyond the founder is while you still have time to shape what and who comes next.

Thanks for reading