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Preparing for a wedding, a major event, an overseas holiday or a career pathway! It’s all in the planning. It’s developing a process of deciding what, why, and how to achieve something and the best way to go about it. 

There are no boundaries for planning, applying to a range of activities and interests, including operating a Business.  

Is that you? If you run a Family Business, it makes good business sense to have a plan, a blueprint for the future.  

And yes, it’s all in the planning. Let me introduce you to Family Business Planning and Succession Planning. 

There are some simple steps to follow.  

Get your house in order! 

It begins with a review, an honest assessment of the current situation. Asking the questions, seeking clarity, and, more importantly, acting on the results. 

• Is there a gap between how the Business is operating today and how it is structured in the legal paperwork? Out of date? 

• Are Wills and Succession plans relevant, keeping pace with asset growth? 

• Are ownership structures reflective of who is and isn't contributing to the Business? 

• Capital gains tax outcomes and implications, any? 

When considering these critical elements, avoid delaying any counter remedies or actions. Indecision is a stumbling block and comes with consequences, usually detrimental to all members concerned. 

In summary, critical matters for consideration 

• Ultimately, who owns what, economically and legally? Are the necessary formal legal instruments current and in place? 

• Who controls the business? What is the timeline? Ownership and control do not necessarily run concurrently. They need intention and alignment. 

• What is the transition/exit strategy? Avoid guesswork and rushed responses; every Business has an exit. Solution: early succession planning is key. 

• Avoid deferring key decisions. Don’t delay or put off discussions and decisions. Schedule regular formal Meetings and conduct annual reviews to best serve all interests.   

• Succession Planning – It's all in the Planning. Blackburn Accounting offers a range of services, including Family Business Management, Cashflow Management, Superannuation & Retirement Planning, and Business Development. Have questions? We can provide the answers you need to run a successful business that’s running at peak performance. 

Example in the spotlight: 

Succession Planning is a feature of a recognised and successful local business, reported to have succession planning as a regular item on the Board’s meeting agenda. With this in mind, it prides itself on attracting and training the best young management talent in the country. 

Its internal succession approach is synonymous with the company conglomerate model.  The most promising candidates are identified from within. They are supported and provided with training and opportunities in various senior roles overtime and well in advance. Ultimately, from the best performers, one is selected. This succession appointment approach can offer stability for all concerned. There are few exceptions to this method in the company's long history. 

The Takeaway: It's all in the planning! Whether big, small or medium, any Business will benefit from well-planned and executed Succession Planning.