When it comes to legacy planning — part of which includes preparing your agency for a smooth ownership transition, whether you’re retiring or facing a personal emergency — the sooner you craft a strategy, the better, and for a considerable number of reasons.
“You should start thinking about a succession plan the moment you start your business, not years down the line,” said Thomas Carpenter, co-owner of Huckleberry Travel and founder and managing attorney of ![]()
Carpenter Law Group, PC, which represents travel advisors, travel agencies and tour operators. “If something unexpected happens, you may not have the luxury of time to put a plan in place.”
The Foundation: Structure Your Business for Success
Begin by setting up a formal structure right away, such as an LLC or corporation, Carpenter says, noting that LLCs offer flexibility when it comes to taxes.
“If you’re operating as a sole proprietor, you and the business are legally the same, which means you can’t shield your personal assets from business liabilities,” he said. “And, just as important, if you ever want to sell, there’s nothing to transfer if the business is just you. Building that structure early is what turns your work into an actual asset that can continue, be handed off or be sold.”
Protect Your Heirs and Clients
Without a succession plan, agency owners may find themselves grappling with negative consequences.
“Your staff could be left without direction or a job; your clients could be stranded with unfinished travel plans; your heirs could inherit chaos instead of a business; and you could risk ending your career with something that has little value — or worse, is in debt,” Carpenter said. “A solid plan protects everyone involved, including you.”
Jackie Friedman, president of Nexion Travel Group, has seen the havoc experienced by the families of agency owners who never implemented a succession plan.
“I’ve talked with advisors’ family members when agency owners are incapacitated or deceased and, especially for sole proprietorships, it is extremely stressful for loved ones to figure out how to make sure their family member’s business and clients are taken care of,” she said. “It makes an already stressful and sad situation even worse. Please don’t add this burden to your family. Make sure you have a succession plan in place for various situations. Believe me, they will appreciate it!"
Ask the Tough Questions
Friedman of Nexion recommends advisors use a multi-pronged approach, asking themselves questions such as: What should happen if you are unable to run your business? What should happen when you want to leave your business?
Friedman also suggests that owners find answers to more granular, but vitally important, questions, including: If you were to drop dead tomorrow, who would know your passwords? Who can access your agency’s bank accounts and CRM? Who can service your clients?
“Most important of all is to identify who that person is, be it a spouse, adult child or another agency owner,” said Huckleberry Travel’s Carpenter. “You can’t assume everyone’s on the same page; you need to have that conversation and put the plan in writing.”
Seek Professional Guidance
Agent owners would be well-served to take advantage of expert advice on issues such as power of attorney and taxes, Friedman says.
“When it comes to your business, it’s worth investing in professional advice; it is money well spent!” she said.
Accounting and legal are areas where agents should not attempt a DIY strategy in succession planning, Carpenter adds.
“A good accountant can help you structure your business in a way that minimizes tax liability and maximizes the value of what you’re building, which is critical if you ever want to sell,” he said. “An attorney, on the other hand, handles the legal framework, making sure your operating agreement, buy-sell agreements and contractor arrangements are solid.”
Ensure Client Continuity
For its part, luxury host agency Global Travel Collection is helping its members navigate succession-planning issues through the Legacy in Motion program, launched last October to support business transitions.
“Travel advisors spend years building trusted client relationships and valuable businesses,” said Simon Brooks, the host agency’s senior vice president of advisor success. “A succession plan helps protect that legacy and ensures clients continue to receive the same level of care and expertise for years to come.”
Brooks stresses that succession is not just about retirement.
“It’s also about protecting clients and the business against unexpected life or career changes," he said. “Client continuity should be at the center of every succession plan. In a relationship-driven business, trust is the most valuable asset.”
Although no one wants to dwell on worst-case scenarios, the adage “bad things happen to good people” is wisdom to keep in mind when it comes to succession planning.
“None of us can know what the future holds, and it’s important to have a plan in place if the unexpected occurs,” Friedman said.
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