Succession planning is not something a lot of small-business owners like to talk about. And when a number of family members are involved in day-to-day operations, it's an even rarer topic of conversation.
Any expert will tell you that's a mistake. Many would argue a family business needs at least a decade to create a succession plan. If the owner wants out, will the company be sold? Will it be passed down to the next generation? If so, what if there's more than one option? If not, is there a trusted employee who is ready to step into the top job? How will any transition take place? What are the legal and financial implications?
Your Business is here to help. In the second of a series of Q&As with experts, we have invited four members of the Canadian Association of Family Enterprise (CAFE) to answer some of your questions on effective strategies for running a family business, helping everyone get along, and getting the succession ball rolling.
Readers can submit queries by linking through to our comments field in the prompt below. We will send a selected number of them to our experts and post their answers soon on the Your Business home page.
Here are their profiles:
Sandra Harvey is a partner of Murphy Business Ottawa.
Sandra Harvey is a partner at Murphy Business Ottawa. She assists small and medium-sized business owners who are preparing their companies for sale. Ms. Harvey and her three partners have more than 90 years of business experience as owners, operators and managers.
Vin G. Tsui is one of the founders and the managing partner of Business Lawgix LLP.
Vin G. Tsui is one of the founders and the managing partner of Business Lawgix LLP. He is a licensed lawyer in both Ontario and British Columbia, and prides himself on providing practical strategic business and legal advice to help companies of all sizes reduce risks and operate more efficiently.
Brent Banda is the president of Banda Marketing Group Inc
Brent Banda is the president of Banda Marketing Group Inc. For 13 years he has worked with family businesses that are retooling their marketing plans as new members enter the business, and he helps manage the different views on business strategy that parents and children might have, such as how aggressively to pursue growth.
Murray Gottheil is a partner at the law firm of Pallett Valo LLP.
Murray Gottheil is a partner at the law firm of Pallett Valo LLP. He practices business law, with a special interest in resolving disputes in family business and business succession issues. Mr. Gottheil is also a director of Family Firm Institute (FFI), an association of advisers to family business.
