Lack of succession or leadership planning may result in leaving an organisation in turmoil, with employees becoming uncooperative if the new candidate is unaware of the current corporate culture. In any country, the small to medium-sized, family-owned businesses, contribute a fair amount of revenue to the economy, and it would be advantageous if these organisations could succeed over a number of generations. Just as any larger organisation, it is of great importance to investigate what and if any succession planning is being practiced in these medium-sized companies. For the purpose of this study, a qualitative approach was deemed appropriate. The researcher could obtain a deeper understanding concerning the psychology and rationale behind the decision-makers in SME's. A more in-depth approach was required to obtain final factors that influence succession planning within an organisation. The results revealed that most familyowned businesses have no formal succession planning system in place. In addition, the reasons for the failure of successful succession planning were revealed, and that by implementing a formal process into the organisation, less trauma, confusion and damage in the company occurred when an inevitable key position became vacant.