As many business owners edge closer to retirement, financial advisors have a major opportunity to guide these clients through a key milestone in their lives, according to James Wong, vice president of succession planning at BMO Harris Private Banking.

Wong, co-author of the book The Transition Experience: What every Canadian family business owner should know beyond succession planning, says advisors can play an important role in helping clients through the succession planning process.

“Business owners want sounding boards. They want people to talk to,” says Wong. “Financial advisors can be a huge ally to business owners in succession planning.”

Here are some strategies to embrace – and some pitfalls to avoid – as your clients approach this milestone in their businesses and their lives.

> Do start the conversation early

Ideally, Wong says, business owners should be thinking about the future of their business years before they expect to retire, so that they have plenty of time to plan for the transition. However, many entrepreneurs start this process much later than they should. Advisors can help them get the ball rolling.

“If I was an investment advisor, I would encourage them early on to think through their options,” he says.

Have clients put all possible succession options on the table before deciding on a course of action, Wong recommends. Some business owners tend to assume that their children will take over the business, even if they haven’t had this conversation at home. Urge them to have these kinds of discussions as early as possible, and help them understand that other options exist, Wong suggests.

“Help them think through all the options,” he says.

> Do involve your client’s children

Succession planning presents an ideal opportunity to begin forming a relationship with your clients’ children. If the kids are part of the succession plan, have your clients bring them to a meeting to discuss the transition process, Wong suggests.

“It’s an opportunity to meet the next generation,” he says. “You want to develop your relationship not just with the exiting generation, but with the incoming.”

> Don’t try to do everything

Just because you’re addressing succession planning doesn’t mean you have to oversee every aspect of the process, Wong says. Encourage clients to consult their accountants, lawyers and other advisors as they make the transition.

“Don’t think that you need to be the only advisor in this area,” Wong says. “As long as you’re a part of that group of trusted advisors that they speak to, you’re building your relationship with that client.”

> Don’t focus too much on the numbers

The dynamics of a family business can be personal and somewhat delicate, so conversations about the business must often address emotional considerations in addition to the financial ones.

“Connect with owners beyond just the numbers,” Wong says. Understanding your clients on an emotional level can significantly strengthen your relationship with them, he adds.

“The good advisors are the ones that really can get into the minds of the business owners about the emotional aspects of succession,” he says. “Once you get into that, you break through as a trusted advisor.”