Canadian business owners work hard and always keep the needs of their business top-of-mind.
But did you know that although 60% of Canadian business owners are over the age of 55, 91% don’t have a formal business succession plan in place?*
It’s important for business owners to start early and think about key issues like:
- Minimizing taxes;
- Strategizing the transition of their business;
- Planning for a comfortable retirement; and
- Considering how to best transfer wealth to the next generation.
Asking yourself the following five questions can help you get started:
- How do you own your business?
- Do you know what your business is worth?
- What happens if there’s an unexpected tragedy?
- Have you considered your exit options?
- And what does retirement look like?
Working through these five key questions with your team of advisors will help ensure you cover off all the key details when it comes to building an effective business owner plan.
*Statistics source: Canadian Federation of Independent Business, November 2012 report. Updated report and statistics (2018) available here: https://www.cfib-fcei.ca/sites/default/files/2018-11/Getting-the-transition-right-succession-planning-report.pdf.