What does the future hold for your business?

ARDA hosts succession planning workshop

Did you know more than 40 per cent of business owners plan to leave their businesses in the next five years and yet, over 60 per cent do not have a formal exit strategy? If you are a business owner, you may have thought about who may take over your business someday but have you thought about that process? Do you know who to go see first? A succession planner (yes there are such people), an accountant, or a lawyer?

On June 22, 2010, ARDA in partnership with the StFX Enterprise for Development Centre, hosted a succession planning workshop conducted by the Acadia Centre for Social and Business Entrepreneurship (ACSBE). ACSBE’s, “Beyond your Business, Step-by-Step Succession Planning” workshop was developed with small business owners in mind.

“Succession planning is more of a complicated issue than people realize,” says Gerry Grant, ARDA’s Executive Director. “It’s really something business owners should be thinking about years in advance. Most people think succession planning is only for retirement, they don’t realize it’s used in case of death or disability as well.”

“Developing a succession plan goes beyond choosing successors and financial, legal, and tax implications,” says Helen Abel from ACSBE. “It also takes into consideration how family, employees, customers, and the new owners are affected.” Part of the workshop included a panel discussion with local professionals who deal with succession planning daily. These panelists were Jason Boudreau a lawyer; Ron Sangster a financial planner; and Mark Sears an accountant. “You spend years building your business, it is worth protecting,” says Boudreau. Sears agrees, “It takes years to plan for your retirement and succession planning should be part of those plans.”

“Succession planning is a big topic and it’s important to bring in local experts,” says Abel. “Business owners have to realize that there are people within their community that can help them with this process.” Participants in the workshop received a “Succession Planning Toolbook” which will help them begin the process. “The key is to keep the momentum going for these business owners once the workshop is over,” says Abel.

The idea to host this workshop came from ARDA’s Business Retention and Expansion Program. “From our business visits, we realized many of our local businesses don’t have succession plans,” says Grant. “It was an opportunity for ARDA to assist with the business community with a topic that isn’t openly discussed.”