Early Thoughts on Succession Planning for Regional Businesses
When it comes to running a regional business—whether it’s a family farm, trucking company, or small-town operation—the hard work and dedication that goes into it is irreplaceable. But what happens when it’s time to step back or hand over the reins? Without early thought and planning, all that effort, legacy, and wealth could be at risk. That’s where succession planning begins.
What is Succession Planning?
Succession planning is about preparing your business for the future. It involves early, thoughtful steps to map out who will take over leadership, how ownership will transfer, and how financial and operational stability will be maintained when you’re no longer at the helm.
It’s not about having all the answers right away but starting the conversation and preparing for big questions like:
Who might step into my role one day?
How do I want my family involved?
What’s the best way to ensure fairness?
Am I personally and emotionally ready for this transition?
Why Thinking Early Matters
For many regional business owners, succession planning can feel overwhelming. It’s easy to push it aside as “something to do later.” However, putting some early thought into your plan can prevent challenges down the road, such as:
Family Disagreements Starting early allows you to clarify your vision and avoid misunderstandings. It’s better to have conversations now while things are calm rather than during a crisis. Be clear about expectations—don’t assume successors will automatically inherit or want the business. Open communication is key.
Example: The Harrison family ran a successful cattle station in Queensland. When no plan was in place, tensions arose between their children. Early discussions helped align everyone’s expectations and maintain family harmony.
Maximising Business Value Giving yourself time means you can prepare successors, improve operations, and position the business for a smooth handover—all of which add value.
Example: Rob, a regional winery owner, spent two and a half years training his daughter to take over leadership. The gradual process preserved the business’s reputation and profitability.
Reducing Financial Surprises Early thought around taxes and finances gives you the flexibility to minimise risks like Capital Gains Tax (CGT), stamp duty, or cash flow issues.
Example: The Thompson family’s farming business was restructured into a family trust, reducing their tax liabilities and simplifying ownership transfer for future generations.
Selling to Employees Not all successors come from within the family. Loyal employees can be great candidates to take over if the process begins early, giving them time to prepare.
Example: A small accounting firm in regional QLD sold to two senior employees. By planning the transition over three years, the owners gave the employees time to secure funding and take on leadership responsibilities, ensuring a smooth handover.
Retirement Readiness Early succession planning isn’t just about the business—it’s also about you. Thinking about what you want your next chapter to look like can help ease the transition.
Example: Neil, a nut farmer, wasn’t sure if he was ready to retire. By gradually stepping back and mentoring his son, he found a way to stay connected while enjoying more personal time.
Managing Expectations It’s easy to assume family members or employees will want to take over, but that’s not always the case. Having honest, early conversations helps avoid assumptions like “all of this will be yours.” Instead, focus on understanding their aspirations, interests, and readiness.
Example: The Smith family expected their eldest son to take over the family trucking business. Early conversations revealed his passion lay elsewhere, allowing the family to explore selling to a trusted manager instead.
How to Start Thinking About Succession
If you’re not ready to commit to a full plan, that’s okay. Start with these early steps:
Reflect on Your Goals: What do you want for your business, your family, and your retirement?
Identify Potential Successors: Are they family, key staff, or an external buyer?
Talk to Advisors: A professional can help you explore options for valuation, tax planning, and structure.
Start Conversations: Talk to family members or employees about their interest and readiness.
Take Small Steps: You don’t have to solve everything at once—start with a vision and build from there.
Final Thoughts: Plant the Seed Early
Succession planning doesn’t have to be daunting, and it can’t happen overnight. By putting early thought into your legacy, you create peace of mind for yourself, your family, and the future of your business.
If you’re not sure where to start, Frontgate Advisory is here to help. From guiding early conversations to mapping out a full succession plan, we’re here every step of the way.
Thinking about succession? Let’s start the conversation.
Disclaimer: This content provides general information only, current at the time of production. Any advice in it has been prepared without taking into account your personal circumstances. You should seek professional advice before acting on any material.