Every year Michelle Madhok takes a 12-day vacation out of the country with her husband, leaving their New York City e-commerce business to manage on its own. One reason, says the cofounder of shopping site SheFinds.com, is to recharge and strategize without day-to-day distractions.

Equally important, it tests each staff member to see if they can run things alone. “If they can’t, we know we need to fire that person,” Madhok says. “We once took a trip to Mexico, and while we were gone we had a lot of dire issues with the site, and we asked our lead editor to work over the weekend to fix them. She refused. So she was let go a month later.”

Most small-business employees will be similarly tested while the owners go on vacation. According to a survey by American Express, two thirds of business owners plan summer escapes of a week or longer this year. Owners of smaller businesses take shorter breaks, according to a study by Seattle compensation tracker PayScale that found entrepreneurs with fewer than 10 employees took an average of a week off, compared with 2.2 weeks for those with 10 to 49 employees and 2.6 weeks for those employing 50 to 199.

The good news for entrepreneurs and employees alike is that an owner who takes a holiday is a happier, healthier owner of a healthier, happier business. “Nonstop work without a vacation or break puts people at risk for poor mood and health concerns,” says Francine Lederer, a Los Angeles clinical psychologist. “A happy business owner can lead to happy customer and client relationships, which in turn leads to a successful business.”

It can also lead to a more valuable business. In addition to testing the employees they have hired, vacationing owners test the systems they have set up. “Issues can and will be discovered when the owner leaves,” says John Martinka, a Kirkland, Washington, business adviser. “When those issues are fixed, the business is stronger.” Martinka says prospective buyers of businesses that are for sale specifically ask whether the owner ever takes a vacation. If the answer is no, it means the business may not run as well with new owners. And that makes the business less valuable.

Most businesses, of course, are not for sale, and most business owners are more worried about running their companies than finding buyers for them. The American Express survey identified a range of reasons entrepreneurs have for not taking a rest—among the top choices, 24 percent worry that clients won’t be served, while 15 percent say they fear poor decisions by staff.

You can address these concerns by vacationing wisely. Start by planning ahead. Spontaneity is a luxury few entrepreneurs can afford when it comes to leaving their enterprises. Ideally, you should take your holiday when business is slow, or at least when it’s slowest. “There’s really no good time,” says Carolyn Gilles, owner of Lexington, Kentucky, marketing consultancy Bourbon and Beans. “You just have to make it happen. And you have to do it way in advance.”

Gilles has set up a week without any appointments and is telling clients a couple of months in advance that she’ll be away. If you can’t see taking a full week, Lederer says even a long weekend will help from a personal standpoint. “Even if it’s 24 hours, just let your mind rest and take a break,” she advises.

Also in advance, let employees know, delegate the chores each will have to take over, and make sure they have the skills to let them discharge their temporary responsibilities comfortably. While you’re delegating, set up one person to be your contact while you’re out of town. While the idea of completely cutting off contact may seem appealing, it’s probably smarter to make sure someone will be able to get in touch with you should an emergency warrant. “Also, for your own piece of mind, it’s probably important to know that you’re not completely cut off,” Lederer says.

As all returning vacationers know, work that didn’t get done during the break awaits. For that reason, it’s a good idea to plan your post-vacation too. Keep your schedule clear for a day or two after you get back so you can catch up. Knowing you have that will let you relax more while you’re gone and get up to speed more efficiently when you’re back.

Vacations themselves may be returning to popularity. American Express says that in 2002, weeklong summer escapes were planned by just 45 percent of business owners, about a third less than in 2011. But planning to take more vacations doesn’t necessarily mean better vacation planning. Gilles, for instance, just knows she’s going somewhere. She’s not sure where.

“I’m following my favorite musicians to see where their concerts are and whether I can plan a trip around that or whether there are friends I can visit,” she says. “I have the week planned off, but as far as what I’m going to do, I’m going mull that over.”