Cultivating the Next Generation of Leaders

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By Michele N. Siekerka, NJBIA President and CEO On Mar 27, 2025

You may have heard the saying that “failing to plan is a plan to fail.” This adage especially rings true when it comes to business succession.

A survey by Edward Jones last year found that more than one-third of US business owners lack a carefully thought-out succession plan. Why? 

Sometimes, business owners do not prioritize succession plans because they assume they will just sell the company when the time comes to retire. This can be short-sighted, because a company is more valuable to potential buyers when succession plans have cultivated a deep leadership bench with the talent to grow the organization after an acquisition. It is a major competitive edge in a world where only 30% of businesses looking for a buyer are actually sold. 

Notably, the survey found that 38% of business owners without a succession plan think it is unnecessary because their company is not at the point where an exit strategy will be needed anytime soon. However, this ignores the fact that illness, tragedy, or even a fortuitous business opportunity can necessitate a sale long before an owner reaches retirement age. A succession plan with talent already in place under these scenarios can help ensure a company’s survival. 

Of course, in the case of multi-generational family-owned businesses, it is not so much a matter of what comes next, but who comes next. A well-communicated succession plan that develops the skills of the next generation of leaders is just as important in a family-owned business as it is in any other. Consider these sobering facts from the U.S. Small Business Administration: Only 30% of family-owned US businesses survive into the second generation, only 12% survive into the third, and only 3% make it into the fourth generation and beyond. 

Throughout 2025, NJBIA is helping to build the next generation of business leaders by offering a Leadership Masterclass Series led by experts who provide insights into real-world business challenges in interactive 90-minute virtual sessions. One of these 11 monthly sessions focuses on succession planning and, specifically, how to identify and develop future leaders.  

Mary Ann Lindholm, vice president at Falstrom Company, a successful fourth-generation family-owned manufacturing business founded 155 years ago in Passaic, will lead the Nov. 18 discussion on succession plans. Scan the QR code at left to register to join us for this convenient online session or to learn more about other Leadership Masterclass sessions we offer. 

Savvy business owners understand that developing talented leaders is essential to their company’s long-term viability. NJBIA is excited to help job creators identify and develop their next generation of leaders. 

To access more business news, visit NJB News Now.

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