Business Australia CEO says succession planning for family businesses often falls into the "too hard basket"
By Ruza Zivkusic-Aftasi | September 5, 2013
Family-run businesses struggle with succession planning, according to the CEO of Business Australia, who believes the matter is often put in the “too hard basket”.
Phillippa Taylor has told attendees at this year’s Freight Week event only 27 per cent of family-run business owners have a succession plan in place despite more than 80 per cent of them planning to retire within the next decade.
Taylor says many operators struggle expressing themselves when discussing the future of their business.
“Succession planning often falls into the too hard basket,” she says.
“There are several challenges of succession to handing over to the next generation with many being family related.”
Taylor believes it is important owners bring in an external facilitator when discussing succession planning with their family members.
“You need to start with your own governance – share the visions and have business meetings instead of family meetings,” she says.
“You need to generate a shared vision. Where do you want to be in three and 10 years’ time and what do you want for the business, from the business and for yourself?”
