Most family-owned retail businesses wait far too long to discuss passing the torch to the next generation, cautions Ankit Shrivastava, founder of Enventure, a U.S.–India private equity firm that guides family-owned businesses through generational transitions.
“They treat succession like a retirement discussion rather than a business continuity issue,” says Shrivastava. “The reality is succession isn’t just about the legacy that you want to protect. It also includes safeguarding employees, customers, and the community.”
And while most family business owners consider protecting the firm a top priority (78 percent, according to a recent PwC survey), far fewer have a documented succession plan in place. (Only 34 percent, according to the PwC survey.)
Shrivastava shares these five strategies to ease the burden of passing the torch.
1) Broach the topic early. “I recommend bringing up the subject of succession with your children as soon as you can envision yourself stepping back from day-to-day operations, even if that’s 10 years out,” says Shrivastava. “That way, you’re not forcing them to make life-altering decisions under the pressure of your retirement timeline.”
2) Look for talent hiding in plain sight. Owners often feel crestfallen if their kids have no interest in carrying on the family business (or if they have no grown children), but finding a great potential candidate to fill your shoes might be easier than you think.
“Too often, founders go talent-blind when the family route isn’t available,” says Shrivastava. “The best successors are often hiding in plain sight. Longtime employees who’ve weathered multiple cycles with you, competitors who share your values, even trusted vendors or regional partners, are all worth considering.
“What matters isn’t just operational ability, but whether they understand why your business has worked. Look for someone who respects the culture but isn’t afraid to evolve it,” he suggests. “And don’t wait for a crisis to start building those relationships.”
3) Face hard truths. One of the trickiest situations arises when the kids are eager to take the helm, but the current owner feels they’re not right for the role. “That’s one of the most emotionally loaded scenarios founders face and where most avoid the hard truth,” says Shrivastava. “Just because a child wants the business doesn’t mean they’re ready to lead it.”
4) Think outside the box. If the younger generation wants to be involved in the family business but lacks the maturity or experience to take on a leadership role, look for other positions that might suit them.
“You can preserve family equity and involvement without handing over the keys,” Shrivastava says. “Some of the most successful transitions I’ve seen involve the founder separating ownership from day-to-day leadership. A professional CEO runs the shop, while the next generation sits on the board, learns the business from a governance perspective, and earns their way in.”
He cites one multi-generational company in the Midwest as an example. “The founder’s son was interested but lacked both the temperament and the trust of staff,” Shrivastava explains. “Instead of forcing the fit, the founder identified a long-serving store manager who had quietly built deep relationships with customers, knew the inventory inside out, and had mentored younger staff for years. They worked out a phased buyout supported by an investor group, giving the manager operational control while preserving the founder’s equity. Three years later, the store is thriving and still bears the founder’s name.”
5) Formalize your plans. The biggest misstep family-owned retailers make is assuming succession will happen naturally, according to Shrivastava. “Many retailers think they have time or that someone will rise up organically. But informal plans breed silent resentment, unclear roles, and operational chaos when a founder exits suddenly,” he warns. “Succession should be treated like a product launch. It requires a roadmap, feedback loops, and leadership alignment. If you wait until you have to plan, it’s already too late. The goal isn’t just to exit, it’s to exit without your business collapsing behind you.”
Ankit Shrivastava, founder of Enventure
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