With over half of Australian family businesses not having put a succession plan in place, and no retirement plan for the current CEO, it’s probably fair to say that some guidance would be useful for those planning to pass their salon onto their family.

With that in mind, the “Introductory Guide to Family Business Succession Planning” – co-produced by Family Business Australia and the Australian Small Business and Family Enterprise Ombudsman’s office – provides a step-by-step guide to passing the family business on to the next generation.

“Succession planning can be challenging,” Family Business Australia (FBA) CEO Greg Griffith says. “But with the right approach, supported by quality information and advice, you can achieve rewarding outcomes. Our 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.”

Australian Small Business and Family Enterprise Ombudsman Kate Carnell says 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 years.

“Australia’s most successful family business stories – and there are many – are a result of well-executed succession planning,” Ms Carnell says.

“However, a  KPMG report reveals 54% of family businesses have no documented succession plan in place and no retirement plan for the current CEO.

With close to 60% of Australian small business owners approaching retirement age, Ms Carnell said now is the time to ensure your salon’s succession plan is put in place.

“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 really highlights the need for meticulous succession planning for those family business owners who are planning to retire in the coming years.”

“The key to families working well together is to have really open and honest communication – which can be difficult when your boss, colleague or direct report is also a member of your family,” Mr Griffith says. “Our succession planning guide offers practical tips to ensure an orderly transition process.”

For more news and updates, subscribe to our weekly newsletter