PROTECTING YOUR LEGACY

Succession Planning And Your Local Insurance Broker Tasmania

If you are a small business owner in the picturesque landscapes of Tasmania, you’re likely well acquainted with the pressing priority of keeping your operations running profitably.

However, in the process, the long-term future – especially plans related to selling or transferring ownership – often takes a backseat.

This is where the relevance of a well-crafted succession plan comes in and your Local Insurance Broker in Tasmania is here to help with the process.

A staggering 90% of businesses, (Family Business Australia’s Family Business 2021 survey), lack a proper succession strategy.

Even fewer have retirement plans for their CEOs or Managing Directors. This absence of a plan could jeopardize a successful business sale or a smooth transition to new leadership, causing unnecessary disruptions and uncertainty for your customers and employees.

So, what’s the solution?

Start thinking about succession planning now, even if you don’t plan to step down anytime soon. Begin by considering potential successors – it could be a family member, a long-standing employee, or an associate interested in taking the reins.

If no such candidate is available, selling your business on the open market could be an option.

However, before you can transition your business to a new owner, there are certain steps to ensure a seamless handover. One of these is getting your financials in order. Any potential successor will want to review the books.

To make your business an attractive proposition, eliminate unnecessary expenses, remove any personal costs from the accounts, and keep your Business Activity Statements and annual returns up-to-date.

When it comes to selling your business, how you structure the sale can greatly impact the returns you make. Considering the complexities involved, it’s prudent to take professional advice early on.

Your accountant can provide valuable insights into the optimal timing and tax implications of your sale to ensure you’re in the best financial position post-sale.

Another crucial aspect to consider in your succession planning is insurance. This is particularly the case for businesses in the professional services sector, maintaining insurance coverage post-transition can be a lifesaver.

Run-off insurance, for instance, can protect you from claims arising after you’ve ceased operating the business. Without an adequate policy in place, you could potentially be held personally liable.

Remember, at every stage of your small business journey, having the right insurance coverage can provide invaluable protection.

So, whether you’re planning for succession, structuring a business sale, or navigating the everyday challenges of running a business, your insurance plays a vital role.

In summary, it’s never too early to think about your exit strategy and the role that your local insurance broker plays in it. It’s not just about insuring your business for the present, but also about ensuring its continuity and your peace of mind for the future.

Please don’t wait until it’s too late; start reviewing your insurance coverage and creating a comprehensive succession plan today.