Massive Business Succession Spells Economic Crisis?

Filed in archive Economic Outlook on October 24, 2006

Last week the Canadian Federation of Independent Business (CFIB) announced the creation of a guide to help business owners plan to exit their business. According to a report on the succession issue the majority of Canada's small- and medium-size business owners plan to leave their businesses within the next ten years.

"It is vital that we address the enormous number of people planning to leave their business in the next few years," CFIB President Catherine Swift said. "A smooth transition from one owner to the next will help maintain a stable Canadian economy. Tools needed to be developed to assist business owners to successfully accomplish this transition process. That is what this guide is all about."

The majority of Canada's small- and medium-size business owners plan to leave their businesses within the next ten years, yet most of them have not taken steps to plan for the future of their business.

I am glad to see the CFIB speaking out on the issue. Last year when my book, Tips and Traps When Buying a Business was released I wrote an article "A Lesson in Demographics, Baby Boomers and Planning" where I documented the demographic changes impact business in Canada and the US.