Insights on Financial Strategies
What is Means to be a "Baby Boomer"!
Given that the average age of business owners within Australia is currently 56, it is more likely that you will be a "Baby Boomer" business owner yourself.
This can pose a number of issues for you and your business.
By considering these issues, "Baby Boomer" business owners are taking proactive steps in reducing the dependency on those individuals who may retire in the near future.
The term "Baby Boomer" is used to define a generation from a demographic perspective. If you are aged from 46 - 63 you are considered to be a member of this generation.
Its a widely held belief that this generation commenced prior to the end of the Second World War and concluded with the introduction of the contraceptive pill and the incline of female employment within Australia. Baby Boomers were born after 1943 and before 1960. This generation represents 22.8% of the population within Australia.
The stats are scary!
57% of business owners are expected to retire within 10 years, 68.2% have not chosen a successor leading to a glut of businesses for sale and only 17.7% of business owners have a succession plan. These are some of the many statistics that confirm succession planning is a major strategic event facing Baby Boomer business owners and managers.
What do Baby Boomers need to do?
The aging Baby Boomers will have a significant impact on the number of businesses available for sale over the next ten years. To determine your succession planning need, ask yourself 3 questions:
- Am I a Baby Boomer in business?
- Is my business my major source of income and wealth?
- Am I relying on the sale of the business to fund part or all of my retirement?
If you have answered yes to all or any of the above questions then you need to start planning your succession now!
So don't put it off any longer; contact Clifton Accountants today.