Four Succession Principles

Succession is always a hot topic. We have found it is typically a worry area for many who attend the Ranching for Profit School, along with time management. As instructors we take note of these frequent and common worry areas for our students. So last summer we added more content to our school curriculum on succession. 

We have had the joy of working through some very successful transitions with ranchers, and have all had the misfortune of working with less than successful ones too. With those experiences in mind, here are four succession principles that we feel apply to any business, any industry, any family:

1. Profitable Businesses – Without profit, there is no business to hand off. Every business regardless of production or service in any industry needs profit and cash flow to survive.
2. Effective Communication – It is hard but it must be done. Both generations need to convey their wants and needs to each other. Once that is done, common goals can be aligned to move the business forward.
3. Competent Leadership – Knowing how to raise livestock is different than knowing how to run a business that raises livestock. The business needs to balance production, money, and people simultaneously to ensure smooth operations.
4. Responsible Transition – Even if there is profit, communication, and leadership, aligning life and business stages will be critical too. Different family dynamics and ages will play into transition timelines. 

Listen to Justin Mills from northeast Wyoming as he discusses succession planning on both sides of his family.

As he says, it isn’t easy but it needs to happen, and sooner than later. All four of these principles have their own challenges and we don’t deny that. However, we feel strongly that for a business to successfully transition both assets and management, they must be applied. I challenge you to take the time to self-reflect and grade yourself if you are passing or failing in each of those four principles. 

If you would like some help navigating them, consider joining us at one of our January Ranching for Profit Schools. And if you are already an RFP alumni, check out our Succession Intensive happening in March 2026 led by Dave Pratt.