Family harmony essential when business transitions to next generation

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Kathy Cheng represents the third generation of her family to run a textiles business. Her father, Chak Wai Cheng, moved to Canada in 1978, starting a small sewing facility. He was following in the footsteps of his own father, who had a textile factory in Hong Kong.

Running a business consumes all of your “attention, time and energy”, she said at The Globe and Mail’s “succession planning for business owners” webcast on June 4, 2024. The event, part of a “lifecycle of a business series,” examined common issues related to crafting a succession plan.that 63.1 per cent of private-sector firms in Canada are family-owned, generating almost half of Canada’s real GDP in that sector.

So is having a vision for how to grow. Ms. Cheng, now president of WS & Co., wanted to continue the family legacy. She explored new revenue streams for the factory, and she launched Redwood Classics Apparel, which is WS & Co.’s successful in-stock apparel line. Sound governance helps ensure smooth succession planning. “It’s all about communication, building trust and understanding,” said Greg Moore, partner at Richter, an integrated business advisory and family office firm that sponsored the Globe’s webcast.

 

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