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INDUSTRY INSIGHT CREATING AN ORDERLY FAMILY BUSINESS SUCCESSION The key to any successful family business handed down over generations is good succession planning, but just 17 per cent of surveyed Australian family businesses have a unifying plan for the future of their business. By Australian Small Business and Family Enterprise Ombudsman Bruce Billson. AKPMG report reveals that 54 per cent of family businesses have no documented succession plan in place and no retirement plan for the current CEO. That’s why my office, in collaboration with Family Business Australia, has developed a free online guide to succession planning. The ‘Introductory Guide to Family Business Succession Planning’ provides a step-by-step guide to passing the family business on to the next generation. Succession planning isn’t always easy. It can be challenging and tense, with family relationships involved. But good outcomes are achievable by taking the right approach and quality, reliable advice. Our succession planning guide provides a great starting point for families in business to consider the what, why and how of transitioning the business to the next generation. It features an easy-to-read decision flow chart, helping family businesses consider the potential for the business to be passed on to future generations. It also includes a checklist to ensure the succession plan is thorough. There has never been a more important time to initiate a succession plan, given the highest proportion of business owners are aged between 45 and 59. The Australian Small Business and Family Enterprise Ombudsman’s ‘Small Business Counts’ report shows more than 60 per cent of employing small business owners are approaching retirement age. This generational shift presents a number of challenges for the sector and the economy more broadly as some business owners may find it difficult to attract a buyer. It highlights the need for meticulous succession planning for those family business owners who are planning to retire in the coming years. It’s important to stop putting off these discussions, even if they’re difficult to have. Our guide offers simple tips on how to handle tense conversations that can arise between family members throughout the transition phase. As in any business, open and honest communication is the key to ensuring family members work well together. Of course, this can be challenging when the boss or colleague is also a member of the family. When these discussions are just too hard, family businesses may look to bring in an accredited external adviser to facilitate talks and help moderate the high emotions involved. Our succession planning guide offers practical steps to create an orderly transition process for the family business. The free ‘Introductory Guide to Family Business Succession Planning’ is available on both the Family Business Australia and the Australian Small Business and Family Enterprise Ombudsman’s websites. "Good outcomes are achievable by taking the right approach and quality, reliable advice." About Bruce Billson Bruce Billson commenced his role as Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in March 2021. Bruce brings experience and knowledge to the role of Ombudsman, and an understanding of the issues facing small business, having started his own advisory business in 2016. Bruce’s political career spans 30 years, including his role as Cabinet Minister for Small Business from 2013-2015. During this role, he was instrumental in the establishment of ASBFEO. Australian Small Business and Family Enterprise Ombudsman’s office The ASBFEO's role is to support small businesses and family enterprises to enable them to grow and thrive. The ASBFEO was launched in 2016 and has two key functions: to assist and to advocate for small businesses and family enterprises. 10 CONVENIENCE WORLD MAR/APR, 2021