“Succession planning for small business owners is a fundamental challenge,” says Sam Febbraro, Executive Vice President of Investment Planning Counsel. “There is no cookie-cutter approach to developing a business succession plan; but for any small business owner, it is important to plan things early on and not in a hurry or at the last minute when emotions are high.”

The Business Development Bank of Canada estimated that almost 60 percent of Canada’s small and medium-sized business owners are aged 50 or older, and four in ten are likely to leave their businesses within the next five years. With many entrepreneurs approaching retirement age, it’s interesting to note that 21 percent are not sure if they have enough money to retire and if their business will attract potential buyers.

When it comes to business transition, what small business owners fear most is the fact that their heirs will not want to take over their business. This is particularly true among high net worth entrepreneurs with more than $1 million in investable assets – 34 percent say they worry that their heirs are not interested, slightly higher than the 28 percent national average of business owners who share the same sentiment, according to the poll.

“Small business owners need to have a conversation with their heirs early on to determine whether they share the same passion for the business and if they have the skill set or are willing to be trained to take over the business,” says Paul Wylie, Senior Vice President of Business Development at IPC Private Wealth. “We suggest using a coach, someone removed from the family, to facilitate these conversations and stand as a family advisor, not just as a financial advisor.”