Beyond The Exit: Why Succession Planning Is a Leadership Decision, Not a Retirement Plan
I remember a conversation with a local business owner here in Lambton County. Over coffee, she mused, “Succession planning? I’ll worry about that when I’m ready to retire…maybe in a decade or so.” At the time, I nodded in understanding. Many small business owners think that way. After all, when you pour your heart into your business for years, the idea of stepping aside feels distant and even uncomfortable. But a near-crisis jolted her perspective: another shop owner in town had to take sudden time off for health reasons, and chaos followed. Customers were confused, employees were directionless, and the business stumbled. It was a wake-up call. She realized succession planning isn’t about planning for the end at all. It’s about making sure the business you built continues to thrive, no matter what happens to you. In other words, it’s not just a retirement plan; it’s a core part of being a good leader today.
At Community Futures Lambton, we’ve seen time and time again how small business owners in our region face this exact dilemma. They’re jugging operations, team dynamics, growth, and on top of that, wondering what happens if or when they step away. We wanted to reframe succession planning for what it really is: a sign of leadership, not a signal to leave. It’s part of building something that lasts and something your future self (and your team) will thank you for.
Beyond Retirement: Succession as a Growth Strategy
Succession planning has a bit of a branding problem. Too often, it’s viewed as something only old owners or big corporations need, or a task to check off in your last year before retirement. In reality, its the opposite: it’s a forward-looking growth strategy and a sign of a healthy business. Think of it this way – it’s about ensuring the vision, values, and momentum of your company carry on long after you step away. It’s about the future of your business, not just your exit. As one business leader wisely noted, succession isn’t a single moment or event, it’s a mindset. When we embrace that mindset, we start treating succession planning as part of how we run our businesses right now, not as some paperwork for later.
That shift in perspective can be powerful. Instead of asking “Who will run my shop when I retire at 65?”, succession-minded leaders ask, “How can I groom talent and delegate today so my business runs smoothly even when I’m not around?” The truth is, starting early gives you more options and control. You’re able to identify and develop future leaders over time, rather than scrambling at the last minute. In fact, businesses than plan ahead for leadership succession tend to perform better – one study found companies with a plan can be up to 30% more successful compared to those that don’t plan for the future. That makes sense: you’re proactively building strength and stability for your company. Even if retirement is far off on the horizon, having a succession strategy means your company isn’t standing still; it’s preparing to grow and endure. And if you are nearing retirement or looking to step back, a well-planned succession can make that transition smooth and positive, rather than chaotic.
Consider some numbers that paint the bigger picture. According to the Canadian Federation of Independent Business, about 76% of small business owners plan to exit their business in the next decade. (mostly due to retirement). That’s a huge wave of entrepreneurs moving on. Yet only 1 in 10 owners have a formal succession plan in place for that transition. Let that sink in: despite knowing an exit is coming, 90% haven’t mapped out how to hand over the reins. Our own community reflects this challenge. A local survey in Sarnia-Lambton found that less than half of businesses had any sort of succession plan to deal with growth or retirement over the next few years. Many of us are essentially just hoping things will fall into place when the time comes. Bust as the saying goes, hope is not a strategy. Failing to plan ahead can put everything you’ve built at risk. It’s not hard to imagine the worst-case scenarios; a sudden illness, an accident, or unexpected offer to buy your company could force an unplanned exit. Without a succession plan, the business could face confusion, stalled operations, or even closure.
From Owner to Mentor/or Seller: Preparing Your Business
If succession planning isn’t just picking a name to replace you at the end, what is it? At its heart, it’s about preparing your business to succeed without you – whether that means handing it off to someone you’ve trained or selling it to a new owner entirely. It’s about ensuring your business has value beyond your personal involvement. That means documented processes, a clear brand, reliable financials, a strong customer base, and an efficient, well-understood operation.
If you’re hoping to attract a buyer one day, your business should be able to show that it’s not just viable, it’s transferable. That means the systems are in place. The financials are clean. The roles and responsibilities are clear. A buyer should be able to look at your business and see potential without needing you in the picture for every single function.
This can feel uncomfortable at first. Many small business owners are used to holding all the cards; client relationships, operations, even inventory. But consider the upside: the more your business can run without your daily input, the more appealing it becomes to someone else. It’s not just about letting go of control, it’s about creating value.
Even if you’re not ready to sell tomorrow, beginning the process now gives you the flexibility. You can slowly ease out, test delegation, and build trust in others to carry the business forward. If a great buyer comes along unexpectedly, you won’t be caught off guard. You’ll be ready with your house in order and your value intact.
Protecting Your Legacy and Your Community
For many small business owners, the business isn’t just a way to make a living, it’s your legacy. It’s the late nights and early mornings you invested, the personal sacrifices, the relationships built with customers and the community. Naturally, you care about what happens to all of that when you eventually step back. Succession planning is how you protect that legacy. Done right, it means the value and service your business is known for will carry on.
Whether your successor is someone you’ve mentored or a third-party buyer who shares your values, what matters most is that they can step in with confidence. A strong succession plan allows for that. It avoids the heartbreak of closure, the chaos of confusion, and the risk of selling at a discount just to make a quick exit.
And here in Lambton County, where so many small businesses are anchors in their communities, this is more important than ever. As retirements rise and transitions approach, planning ahead can protect jobs, customers, and the fabric of our local economy.
The Best Time to Start is Now
If you’re thinking, “This all sounds important, but I’m not ready to leave yet,” you’re not alone, and that’s exactly why now is the perfect time to start. Succession isn’t about announcing your retirement. It’s about preparing your business for the future, whatever that may look like.
Whether you’re eventually passing the reins to a trusted team member or selling to a new owner entirely, the goal is the same: create a business that has lasting value and can carry on strong without you.
With the upcoming launch of BizLink in Lambton County, business owners will soon have access to a new resource specifically designed to help with this process – whether you’re just beginning to think about selling or already preparing for a transition. There’s tools to help you explore options, make informed decisions, and feel confident whatever comes next.
Let’s keep the conversation going. Connect with us a Community Futures Lambton if you’re ready to start thinking beyond the exit.
And if you find yourself saying, like that business owner did over coffee, “I’ll worry about succession planning when I’m ready to retire,” we encourage you to reconsider. The best time to start is now – while you still have the time, space, and opportunity to shape what your next chapter looks like. Because successional planning isn’t about stepping away. It’s about leading forward.
References
- Sarnia-Lambton Workforce Development Board – Employer Survey on Succession
- The Negrete Group – “Beyond the Exit: Strategic Succession Planning for Long-Term Impact
- Egon Zehnder – “Executive Leadership Succession” Insights
- Omaha Magazine – “Without a Succession Plan, You’re Not Leading – You’re Hoarding”
- CFIB News Release – “Over $2 Trillion in Business Assets at Stake…”
