When Your Kids Don’t Want the Business: What Small Business Owners Can Do
You’ve worked hard to build a business you’re proud of, but what happens if your children don’t want to take over? Whether they’re following different careers or simply aren’t interested, you still have solid options to protect what you’ve built and secure your own future.
Get a clear business valuation
The first step is to understand what your business is worth. A professional valuation gives you clarity on its current market value and sets the foundation for any decisions ahead. Engaging a local accountant or business broker can help you get a realistic figure. Knowing the numbers early puts you in a stronger position whether you choose to sell, wind down, or transfer ownership.
Look at a sale to key staff
If family succession isn’t an option, it’s worth looking within your business to see if a trusted employee or manager might be interested in taking over. Selling to someone who already knows the business can mean a smoother handover. Quiet conversations with senior staff can help gauge interest, and if the timing is right, an adviser or solicitor can help structure a management buyout that works for both sides. Deals like this often involve the buyer paying in instalments using future business profits, easing the financial pressure on them while giving you a gradual exit.
Make the business less dependent on you
Regardless of who the buyer is, it’s wise to make your business less dependent on you. Businesses that don’t rely solely on the owner tend to sell faster and for a higher price. Start by documenting key processes and ensuring your team can handle day-to-day operations without you. Strengthen relationships between customers or suppliers and your staff, rather than keeping everything routed through you. The more smoothly your business runs without you, the more attractive it will be to any future buyer.
Consider alternative exit strategies
You don’t have to sell 100% of the business straight away. There are flexible ways to step back gradually and still benefit financially. Leasing out the business premises, selling a portion of the business while retaining a minority shareholding, or breaking up and selling key assets like equipment or client lists are all viable strategies. Exploring different exit options with an adviser can help you choose a path that fits your goals and lifestyle.
Plan how to use the sale proceeds
It’s important to think ahead about how you’ll use the proceeds once you step away from the business. Planning early gives you more control and more choice. Meeting with a financial adviser can help you map out how to invest the funds to generate income and support your retirement. It’s also a good time to update your estate plan and will to reflect the changes in your business situation. Even if your children aren’t taking over, you might want to set aside funds to help support them in other ways whether that’s education, housing, or other family goals.
The takeaway
Even if your children don’t want the business, it’s not the end of the road. With clear planning and the right advice, you can exit on your terms, protect your financial future, and create new opportunities for yourself and your family.
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By Brett Tarlington