Most potential business successors think there's a plan – but owners say otherwise

A majority of potential successors to small businesses believe a succession plan is already in place, but new research suggests many owners have yet to take that step, highlighting a communication gap that could complicate future ownership transitions.

According to a report from financial technology company Revenued, just 35% of surveyed small business owners said they have any succession plan in place. Meanwhile, 59% of potential successors – adults with a close family member who owns a small business—believe a plan probably or definitely already exits. This creates what the company calls a “24-point perception gap.”

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The findings are based on parallel surveys conducted in May of 130 small business owners and 274 potential successors. Revenued said the gap suggests many future business owners assume succession has already been addressed, reducing the likelihood they’ll ask questions or begin planning conversations.

The figures come as succession planning continues to be a growing focus for advisors working with business-owner clients. InvestmentNews has reported how advisors are encouraging owners to begin planning years before an eventual exit, emphasizing that successful transitions require more than financial preparation and often involve navigating family expectations, legacy concerns and long-term business continuity.

The Revenued survey also found communication gaps extend beyond formal planning. Fourteen percent of business owners said they believe a family member wants to take over the business despite never directly asking, while 35% of potential successors said no meaningful conversation about the company’s future has taken place. The findings reflect a broader trend of business owners reconsidering who will eventually take over their companies.

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Revenued’s research suggests younger owners may be among those facing the greatest challenges. Among owners under age 45, who made up 51% of the sample survey, 38% said their planned exit has shifted later compared to three years ago, the highest rate of any age group.

Time in business also did not necessarily translate into greater succession readiness. Owners operating their businesses for more than a decade were the least likely to have identified a successor, with just 29% saying they had done so. Meanwhile, owners in their sixth through tenth year of operation had the highest rate of successor identification, at 39%.

Financial barriers remain another obstacle. More than half of owners in the food service and transportation industries said financial factors have significantly or somewhat limited their ability to exit. The survey also found that simply being aware of financing options designed for business transitions does not necessarily lead to better preparation, as owners familiar with those options were no more likely to have a successor funded and ready.

The report also highlights an emotional divide between current owners and future successors. While owners often worry about losing their daily purpose and structure after leaving their business, potential successors are more likely to view taking over as an obligation rather than an opportunity. Revenued said the difference in how each side views a transition may be another reason succession conversations fail to begin.

As millions of small business owners approach eventual exists, the findings suggest that starting conversations earlier may be key to ensuring the next generation is prepared to take over.