Succession planning for a business that the next generation doesn’t want to take over

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Like many other older business owners, Myra Sable doesn’t have an obvious successor for her gourmet food business, Sable & Rosenfeld.That’s when Ms. Sable, the owner of a Toronto-based gourmet food business called Sable & Rosenfeld, first started thinking of passing the business along to the next generation.

Ultimately, the following generation, like their parents, entered other career paths. She wonders whether one of her grandchildren might decide to return to the business after spending a couple more years in the work force. Marvin Cruz, director of research at the Canadian Federation of Independent Business , says that situations like Ms. Sable’s are not uncommon among small businesses. In 2023, theon the topic which revealed that 76 per cent of Canada’s business owners plan to exit their businesses within the next decade.

But what happens when children are on the fence about taking over? It can be tempting to wait and keep your fingers crossed, but that shouldn’t be an excuse not to begin succession planning. If kids are on the fence, business owners should set a deadline for them to decide what to do so that business owners can take the next steps. Should family not be on board, other options include selling the business to a long-term employee, selling to a third party or shutting down the business.

 

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