Many HVAC and plumbing businesses are small-to-mid-sized, independent, and family-owned — true examples of the American dream. Mom-and-pop shops have traditionally dominated the trades, and have built their businesses through word of mouth, exceptional service, and great work. What happens when mom and pop want to retire?

If that’s you, you’re likely too busy running the show and putting out fires to think too much about the future. But whether retirement is four years away or forty, the best time to start planning for it is today.

Here are some tips for smooth succession planning.

Decide on a timeline

When you’re in the thick of the day-to-day, retirement can seem like a “someday” sort of concept. But the first step in succession planning is deciding when you’ll want to hand over the keys to the shop for good. You don’t need an exact date carved in stone, but a general timeline — five years from now, 10, 20? — will give you the framework to help you set your succession up for success. The rule of thumb: You can’t start planning too early. But you can wait too long.

Think about your exit strategy

Is your family working with you now? If so, you may want to pass the business down to them. You could also sell to an outside buyer, which would garner you a big one-time payout. There’s also the option of selling to employees. You could do all of the above and simply walk away, or you could also structure it so you could still work at the company during the transition. Any way you do it, you’ll need bulletproof books showing profits quarter after quarter, and a seamless operation.

And about that seamless operation…

Document your institutional knowledge

That’s all the processes, procedures, and fixes you and your seasoned employees “just know” from years on the job. You need to preserve and record that for people who come next. While you’re at it, document all of your passwords, training procedures, job descriptions, customer data — anything that’s vital to running your business.

Prepare the line of succession

This matters the most if you are not selling to an outside buyer, who may have their own people in mind. If you’re not selling, it’s never too early to look at your great people through the lens of who best might run the shop when you’re on the beach in Mexico. If it’s family, that decision may already be made. If not, you’ll have to assess your people and make sure they have the skills and knowledge to carry on. It’s never too early to start mentoring and guiding whoever is going to take over your legacy.

Talk to your banker, CPA, and lawyer

Building your financial support team is critical. You need to accurately value your business, get all of your documents in order, make your books bulletproof, and understand exactly what you need to do, legal-wise, for a seamless hand-off.

You don’t have to decide anything quickly. The passing of the torch is an emotional milestone for anyone who has spent their life building a business. Making a solid succession plan now will ensure that legacy will survive and thrive in the future, so you can enjoy your well-earned retirement.