The first of them recently hit 65. Many of them are selfemployed and will have to face the future of their business soon. For many the value of their business is their superannuation fund and valuable it may be.

What are your plans?

One thing is for sure - you should be planning now. You should be thinking about who (if any) in your family may be suitable to take over the business or whether it will need to be sold.

Just because you have aspirations for a family member to take over does not mean they do and putting the "hard word" on may not be the best thing for the business, the family member on the family. Statistically only 30% of family businesses survive being passed to the next generation and a mere 12% to the third so it may not be the best plan.

If you in your 50's or over now is the time to be thinking about: 

• When you will step aside?
  
• Is there a successor in the family?; if not
  
• Is there one in the business?
  
• What do they need to learn and when should you start training them?
  
• How much is the business worth?
  
• How the change of ownership be funded?
  
• What needs to be done to the business to lift its value and make it saleable?

Letting go of "your baby" is often an emotional wrench which should also not be underestimated. It is emotional for the owner, for the successors and for family members excluded from the succession, for clients and employees.

The transition needs to be carefully planned to ensure that clients/customers are retained, staff and suppliers are not unsettled. For many family businesses the respect and standing of the owner to these people is a fundamental aspect of the success and standing of the business - your business.

Now is as good a time as any for you to begin to plan. It is better to take control of your succession than for it or life to do it for you.

Cornish are happy to discuss your thoughts and assist with a plan.