Ryan Beedie: Lessons and regrets in involving the kids in the business
Though he has some regrets on letting the kids go their own way, he and his wife made sure they are involved in the family real estate business in an advisory capacity
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Raising children while running a multigenerational family enterprise can involve a unique set of challenges and concerns, especially when children grow older and succession planning becomes part of the dinner conversation.
Starting that conversation can often feel like the beginning of an unknown and stressful experience.
“Implementing a succession plan can often entail fairly complex corporate restructuring of family businesses and family offices, senior business managers and external accountants, in addition to legal professionals, are often key players in implementing the various steps of a succession plan – most of which should be put in place long before any succession actually occurs,” says Andrew Bourns, a partner at Dentons Canada LLP, who regularly sees patriarchs and matriarchs who have raised children whilst maintaining their family enterprise.
Ryan Beedie, president of Beedie industrial and residential property development company, and his wife, Cindy, the executive director of the Beedie Foundation, have long understood the challenges and decision making that goes into maintaining healthy family and business dynamics in equilibrium.
Here, Ryan talks about how he has relied on the strength and tenacity of his wife, as well as what he learned from his own father when bringing the subject of succession up with his three children.
How has your experience been raising children while running a successful family business?
“My kids are adults now, they’re all in their 20s and I’m 53, to give you an idea of our generations.
“It was challenging to balance the demands of raising kids and running a substantial, growing business. You want to be a great father and at the same time, the duties and needs of the business are constant. It was difficult at times, and I relied heavily on Cindy to pick up the slack, which she did. I think we have made a great team, hence a thirty-year marriage (and counting).
“I was involved with my kids a lot more than my dad was, as he worked 70 hours a week and the business was his priority. It was a different time. I wanted to be more involved with my kids and for sure I was, but the business has always been a priority for me, too.
“Lee Trevino, a famous golfer from the 60s and 70s said that to be really good at something you have to be a little bit selfish. You can’t be all things to all people. The demands of the business and the responsibility of that took time to balance. I have a stakeholder group that count on me as well, and all the other people who are employed in various layers of the business.”
Will your children participate in the family business?
“Over the long term my kids will benefit from the success of the business. I have three kids who are all in their 20s. The eldest is a boy and he just had a baby, so now there’s another generation to think about.
“None of my children are in the business; they’re all on the creative side. One of my girls is a singer songwriter, and my youngest daughter is an actor. My eldest son is involved in video game design.
“I made an intentional decision about 15 years ago to let them go and do their thing. I have some regret with that, to be honest. I thought one or more of them might come back. I believe in giving them leeway, but I might have gone too far. You build up this enterprise and you want it to go on for further generations. I thought at least one of them would be, but none of them are in at this stage.”
Will you ensure that your children play a role in the family’s wealth stewardship?
“I’ve pivoted a bit. They may not be running the business, but they have to learn to be owners. No matter what happens, they’re going to be very wealthy because of this business. It is better to keep the business going long-term as an engine for doing good. The kids need to become educated owners in order to gain the benefits of ownership.
“We have created an advisory board that the kids and Cindy are part of, and they have started to learn more about the business from their participation.”
What direction can the kids take with the advisory board?
“The goal and hope is that, in addition to what I teach them, they learn about the business through their participation on the advisory board. This board would become a board of directors should something happen to me so this way there is an infrastructure in place to help ensure we keep going.
“This platform also provides for them to learn about our philanthropic initiatives and the kids will gradually have a say in where we direct charitable contribution from the Beedie Foundation. This is in addition to the Beedie Luminaries scholarship program, which now includes 475 students … and includes mentorship, coaching and peer-to-peer support. We started Luminaries four years ago and are very proud of its impact to date (99 per cent retention rate).
“We see philanthropy as a key aspect of our legacy. Having a reputation for being committed to the community is very important to us.”
Are there any relationship challenges involved in the business-family matrix?
“My youngest does not like the succession discussion because it involves the idea of Cindy and I dying, but with so much at stake, it is critical that we have a well thought-out plan in place.
“I think all of the kids feel some pressure about their future responsibilities and I have to be mindful of this as we continue with the journey. I think the kids also have to navigate having a name that is now well-known in the community. This is something I did not have to contend with as much when I was their age.”
Are there types of advisors and external people whom you have found helpful?
“We have a very strong family business advisor who resides in the United States. In addition, our family office provides ongoing support for the kids, seeking out educational opportunities specific to family enterprises. The members of the advisory board are also keen to be positive resources for the kids.”
How did your experience with your father influence you?
“What he did was brilliant, amazing, and textbook ‘wow.’ I know people who have not handed the business off well at all. My dad gave me authority by the time I was in my late-20s. He handed me the baton because he could see how fast I wanted to run. We had great counsel back and forth, and had tremendous, mutual respect.
“The only thing we argued about was relocating from our office on Kingsway where he had been for 53 years. When we finally moved, he apologized for making such an issue about it. He was the kind of person who readily admitted his mistakes and he could often remove ego from his decision making. He was brilliant and I learned so much from him.”
Responses have been lightly edited for clarity and length.
Other stories from Canadian Family Offices
- Recent changes to Canada’s tax laws could be costly to family businesses
- Women, formerly sidelined in family business, now more embraced
- Newfoundland family builders and HGTV stars on successful succession
- ‘Never go against the family’: Truths about family business from ‘The Godfather’
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