Talent Development & Succession Planning in Canada
Survey results from 2006 CFIB study [PDF] indicate that slightly more than one third of independent business owners plan to exit their business within the next 5 years.
The study states that majority of SME owners are not adequately prepared for their business succession with only 10 per cent having a formal, written succession plan. Apparently, 38 per cent have an informal, unwritten plan but the remaining 52 per cent do not have any succession plan at all.
I am working on a Talent Development & Succession Planning program that will first be made available at a conference in Hawai'i May, 2007. For more info, email me.
Interesting Findings
- In a previous study, CFIB found that one in ten owners planning to exit their business have their sights set on starting another business venture.
- Business owners in Western Canada are the most likely to be planning to exit their business in the next five years.
- Business owners in Quebec and New Brunswick are least likely to be exiting their businesses in the next five years.
Exit time lines are slightly more pronounced for businesses in the primary, wholesale and personal services sector, and slightly less for those in agriculture, community services, and construction.
Get Support and Help
Due to the technical complexity of exiting a business with the least tax and lifestyle impact make sure you get help with the legal transfer of your business, understand the tax implications, investigate the financial health of your successor, and take time to think through the distribution and sharing of future profits.
You may also find that other advisers including banks, financial advisers, business associations, insurance brokers, the Business Development Bank of Canada (BDC), or Greg could be great resources of information to help you get organized and start planning.