Succession planning can play a critical role in preserving the long-term stability and legacy of Black-owned small businesses. Experts emphasize that it can help avoid business disruptions, support wealth transfer across generations, and reduce the chances of closure. Despite its importance, many small business owners—particularly within the Black community—often overlook this step. With over 65% of small business owners expected to retire within two years and only 30% of businesses successfully selling, the future of many longstanding enterprises remains uncertain.
Entrepreneur Karla Trotman, who succeeded her parents as the head of Electro Soft Inc. in Pennsylvania, shared her experience with succession. After spending over a decade learning the business directly from her father—including three years managing it—she stepped into her leadership role with clarity. Her experience motivated her to write Dark, Dirty, Dangerous: Building the Vibrant Future of Manufacturing, a book offering guidance on closing the wealth gap through ownership and succession.
Trotman’s business has around 30 employees and generates seven-figure annual revenue. She emphasizes the value of planning early and consulting private wealth advisors, a move she says was critical in shaping her own approach to transition. She also advises others to prepare for real-life scenarios, including death or divorce, and to assess carefully which family members—if any—should take over.
Brian Ford, a wealth management advisor with Northwestern Mutual, adds that many Black entrepreneurs view their business as more than income—it’s a symbol of legacy and resilience. According to Ford, having a succession plan signals strength to banks and vendors, and working with qualified financial advisors can help business owners align legal, tax, and financial needs for a smooth transition.
Trotman believes that failing to plan puts family legacy at risk. Her takeaway: be proactive, make clear decisions, and put structures in place so the next generation is prepared to lead and protect the business.
