Cowell's son, Eric, is set to inherit his father's £300 million ($509 million) fortune, along with the Syco record label and the television empire.
"In all seriousness, he's going to do what I do. In time he's going to inherit my business. That's certainly the plan," Cowell told The Sun.
He said it would be fine for Eric to try performing rather than the producing side of the business, but he will be honest with his son.
"If Eric wants to try out being a singer, I would be OK with that. I certainly won't stop him. But I'll tell him straight if he can't do it. Admittedly, I might not be quite as blunt as I am with some of the contestants," he said.
One source close to Cowell said that the producer's priorities have shifted with the birth of his son, and he may take a break from the business to spend more time with him.
"Simon doesn't have the same fire in his belly. He's very clear that if things don't work out he'll just spend some time with Eric, relax and enjoy life."
Cowell's shows aren't doing well. His show Britain's Got Talent has seen ratings take a dive, and the X Factor-based musical I Can't Sing ran for only five weeks. X Factor in the U.S. was cancelled after three seasons. The U.K. version has its own problems after he reportedly had a falling out with judge and former Spice Girl Mel B when she refused to deliberately antagonize other judges on the panel.
Even Cowell's most sucessful show is seeing difficult times as season 13 of American Idol finished in May with only 6.6 million viewers, making it the lowest-rated episode in the history of the competition.