Now's the time to plan

© iStockphoto/amphotora

NOOSAVILLE-based financial planner Duane Potter said many businesses get so caught up in the “now”, they forget to plan for the future.

The Vine Investment Planners director said succession planning was one of the most challenging aspects of running a business.

“It might be hard to have a long-term vision at the moment, but business owners cannot avoid it,” Mr Potter said.

He said research showed 70% of family-run businesses thought succession and retirement planning was important, but only 12% had a documented plan.

He said succession planning was like making a will for a business and should form one of the key elements of a business plan.

Planning should begin at least five years before exiting the business, he said.

“In order to transition a business to the next generation, or to a new owner outside the business, getting the structure right is imperative,” he said.

Here's Mr Potter's succession check-list:

  • Develop a long-term plan that addresses professional and personal objectives.
  • Decide how to transition the business - family or external purchase.
  • Establish the purchaser's needs and motivations.
  • Build the business to be financially sound.
  • Determine the tax implications in exiting.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Scene set for Battle of Yaroomba Beach

Sekisui House Australia is hoping to build a five-star international hotel and resort development on a 19 hectare beachfront site at Yaroomba.

Unrivalled interest in proposal sets scene for crucial showdown

Cost of swimming lessons means parents can't afford them

Cost is the biggest barrier to swimming lessons.

Parents may have to choose food over swim lessons

Planning for ecotourism

ECO TOURISM: LNP leader Deb Frecklington says national parks and reserves should be opened up.

POLITICIANS discuss unlocking out natural attractions.

Local Partners