Succession planning seeks to manage these issues, setting up a smooth transition between you and the future owners of your business. With family businesses, succession planning can be especially complicated because of the relationships and emotions involved - and because most people are not that comfortable discussing topics such as aging, death, and their financial affairs.

Nationwide statistics indicate that more than 70% of family-owned businesses do not survive the transition from founder to second generation. All too often, the business is doomed by family discord over the business transition or tax issues related to the transfer.

One important aspect of business governance is the fact that business management and business ownership are distinctly separate creatures. A business owner may elect to transfer management powers of a business to one person, perhaps a child, while transferring ownership shares of the business to many people, perhaps many children.

It is important to remember that not every agreement will be fitting for every business. Therefore, it is important to consult with a knowledgeable business lawyer regarding buy-sell agreements and succession planning issues.