What is Business Succession Planning?

Business Succession Planning is a business protection plan to cover you, your family, your business and business associates in the case of unplanned events. Without it your business may fail, exposing you to unnecessary financial risk

Don’t be a statistic!**

• 69% of people in small business have no income protection* 
• Only 25% of people in small business could keep their business going or maintain their lifestyle for more than six months if they suffered serious illness or disablement* 
• 47% of people in small business are not aware that income protection is tax deductable* 
• 31% of small business owners over aged over 50, which makes succession planning essential^
   

* IFSA, Small business; Missing out on valuable tax breaks, 2006
^Australian Bureau of Statistics, Characteristics of Small Business Cat No. 8127.0,2004

If something happened to you ask yourself the following:

1. Would you be confident that you and/or your family would receive adequate payment for the transfer of interest between you and your business associates?
2. Would the business have sufficient funds to repay any loans owed to you and release any assets held as security?
3. Could your business associates continue to run the business in your absence?

What if something happened to one of your business associates?

1. Would the business struggle with the loss of key skills and costs to replace those skills?
2. Would you lose a key revenue generator?
3. Would you have enough cash flow to meet your business commitments?

These are all scenarios that can be easily avoided by having a business succession plan put in place by a qualified Wealthfarm financial adviser.

Wealthfarm’s advisers can advise you on competitive, flexible business protection insurances to cover you, your family and business associates for these business succession needs. Our advisers will help you understand your current situation and will support you in protecting your business.

Types of Protection**

Asset Protection

Asset protection can provide the business with enough cash to preserve its asset base so it can repay debts, free up cash flow and maintain credit standing if a business owner or loan guarantor dies or become disabled. It can also release personal guarantees secured by the business owner’s assets, for example; the family home.

Revenue Protection

Revenue protection can provide your business with enough money to compensate for the loss of revenue and costs replacing a key employee or business owner should they die or become disabled.

Ownership Protection

Ownership protection can provide the continuing owners, or their nominees, with sufficient cash for the transfer of the outgoing owner’s equity to the continuing owners, should a business owner die, become disabled, or suffer a critical illness.


What do you do now?
There are a few options for you moving forward;

• Sit back, live life like you have been and hope that nothing ever happens to you or any of your business associates 
• Make an appointment with a Wealthfarm Business Succession Planning adviser by calling 1800 WORK IT (1800 967 548) and protect yourself and your business for the future
• If you don’t choose to contact Wealthfarm we urge you to seek advice from another Business Succession Planning specialist adviser. We would hate for you to experience unnecessary financial hardship because you did nothing!
   

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial planning advice before acting on this information

You should seek advice from a risk specialist financial adviser before taking out insurance for business purposes, or altering an existing policy. A risk specialist financial adviser can help with convenient ways to package and pay premiums, and review any of your existing insurance. Your risk specialist financial adviser may also be able to liaise with your legal representative to ensure your insurances are adequately reflected in your legal documentation

**MLC Risk Specialist Network. Building and Protecting Your Business brochure.