Building the Runway for Your Small Business

Every business eventually faces a transition. Whether it’s an ownership change, leadership succession, or preparing to sell, the reality is that no business can operate indefinitely without a plan for what comes next. Just like a plane needs a runway to safely take off or land, your small business needs a clear transition plan to ensure a smooth and successful handoff.

And here’s the key—runways aren’t one-size-fits-all. The length and complexity of your transition plan depends on the size, structure, and goals of your business.

The Plane and Runway Analogy

Think about a small plane versus a large commercial jet. A small single engine plane might need a short runway to get airborne, while a jumbo jet requires a very long runway to build up enough speed for a safe takeoff. In the same way, a small, simple business might require less time and planning to transition, while a larger, more complex business may need years of preparation and implementation.

The analogy also works for landing. A business that doesn’t plan ahead risks “running out of runway,” leading to rushed decisions, financial loss, and unnecessary stress.

Why Transition Planning Matters

A successful transition doesn’t happen overnight. On average, a good transition plan can take three or more years to execute well. That’s because transition planning isn’t a single event—it’s a series of consistent, incremental, and intentional steps designed to protect your business, your employees, your customers, and your legacy.

Without a plan, businesses risk:

• Loss of value when trying to sell or hand off.
• Disruption for employees and customers.
• Increased stress for the owner and leadership team.
• A rushed exit that fails to meet financial or personal goals.

Four Keys to Effective Transition Planning

1. Start Early and Give Yourself Enough Runway

If you want your business to take off smoothly, you need to begin building your runway years in advance. Even if you don’t have immediate plans to sell or step back, creating options today gives you flexibility tomorrow. Early planning reduces stress and improves decision-making.

2. Align the Plan with Your Goals

Every owner has different goals. Do you want to maximize your sale price? Keep the business in the family? Transition to a trusted employee? Each option requires a different type of “runway,” so clarity on your personal and professional goals is essential.

3. Build Incremental Milestones

Don’t wait until the last minute to take action. Break your plan into smaller, achievable milestones—improving systems, strengthening leadership, cleaning up financials, and documenting processes. Each step builds momentum and increases your business’s readiness for a smooth transition.

4. Communicate and Prepare Your Team

Transitions affect more than just you. Employees, vendors, and customers all feel the impact. By preparing your team and clearly communicating the process, you ensure confidence, stability, and continued success long after the transition is complete.

Short Runways vs. Long Runways

• Short Runway Businesses: Smaller, owner-dependent operations may need less time but still require planning. Think of a single-proprietor service business. Transitioning might focus on customer handoff and knowledge transfer.
• Long Runway Businesses: Larger businesses with multiple departments, assets, or locations often require years of preparation. This includes leadership development, tax and legal planning, and building systems that can operate without the owner.

Both require a runway—but the larger and more complex your “plane,” the longer and more intentional your runway must be.

Final Thoughts

Transition planning is one of the most important, yet often overlooked, parts of small business ownership. Whether you’re planning to sell, retire, pass your business on, or liquidate, starting today gives you the time and space to create the outcome you desire.

Like a pilot, your job is to make sure your business has the right runway to lift off—or land—safely and smoothly. With three or more years of consistent, incremental, and intentional planning, you can protect your legacy, safeguard your people, and set your business up to thrive well into the future.