There are compelling statistics about the scale of the succession planning challenge facing small business in Australia over the next 20 years. Here are a few facts based on an RMIT University survey carried out several years ago.
- Small business in Australia comprises 97% of all businesses.
- Asset Value = $4.3 trillion
- Employs 40% of Australian workforce
- Average owners age = 55 years.
- Retiring in the next 10 years = 81%.
- Estimated business sales = $3.5 trillion.
- Owners with no exit plans = 75%
Why should you have a succession plan?
Whilst many small business people are continuing to enjoy success in their businesses in their 50’s, 60’s and even 70’s there is an inevitable fact that every owner will exit. By being prepared the small business owner will:
- Enhance the Continuity of their business
- Help unlock the Value of the business
- Maximise the Business Value
In short a planned approach will increase the chances of achieving your personal, business and financial goals.
What are the key steps in developing a succession plan?
Once you have decided that a succession plan makes sense for you there are a number of important steps including:
- Evaluate your position today
- Set your personal, business and financial goals
- Plan your strategy
- Changing leadership to ensure business continuity
- Timing for exiting from ownership
- Funding your retirement
- Managing your succession plan
Congratulations if you have all these steps in place because you can justifiably state that you are ready for succession planning.
By embracing succession planning, owners can:
- Maximise the value of their business,
- Unlock that value, and
- Ensure the business continues into the future.
There is no one way to develop a succession plan and we are available to assist you through the planning and implementation process to deliver a quality service for the small business owner.
If you would like to know more about our Small Business Succession Planning services we are happy to assist.
Need help with Succession Planning?
Good luck with your business venture.