Small business underpins our economy and provides a source of income and store of wealth for millions of Australians, writes Campbell Korff. This means that those same Australians also rely on the value realised from the sale of their business to support them in retirement – and that can be a problem.

I have discussed previously how not enough small business owners are making use of the huge tax advantages of superannuation during their working lives. All is not lost, however, if you are in this category. The government anticipated this and has provided small business owners with special tax concessions when they sell their business assets at retirement, provided they then make use of superannuation.

What this all means is that it is critical that business owners maximise the value of their businesses when they sell out or retire.

For most, however, this means seeking offers a few months before they need to sell from their own network or possibly getting a local real estate agent to do some advertising. Having negotiated a quick deal with a competitor or staff member, a short meeting with their accountant and solicitor follows to work out the tax bill and contract.

Where was the planning? Looking before your leap is probably a good idea…

Given most small business owners put their heart and soul into their businesses for most of their lives, this process hardly seems to be doing justice to a life’s work.

Where was the planning? What was the valuation method? What steps did the owner take in the years leading up to exit to maximise that value? Was a sale the best exit or would more value be captured by structuring a succession plan for a promising junior? Were other structures available to entice the buyer to pay more? Was a tax and retirement plan developed beforehand?

Exiting a business successfully is a complex process during which hundreds of thousands of dollars of your wealth can be destroyed if care and, importantly, expert advice is not taken well ahead of time. Indeed, to a certain extent, you should always be buyer ready because you never know when that ‘too good to refuse’ offer might land on your desk.

If you want to contact Campbell Korff of  Yellow Brick Road Ballina go to: www.ybr.com.au/Branches/Ballina

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Art & Logic: Business planning for creatives with Christina Giorgio.

 Christina Giorgio has been involved in the arts and cultural sector for almost 20 years. She’s worked as a full time community cultural development coordinator and as a strategic planner she’s created numerous arts business plans.  As an event coordinator she’s produced arts events ranging from exhibitions and installations to performances and festivals.  Christina studied film and theatre at university and has a certificate IV in business. These days she’s the owner of Creative Consultancies and from her base near Byron Bay she’s turning her attention to helping the ‘creatives’ of the Northern Rivers understand the importance of a great business plan.

“As a musician, film maker and writer, I get it. For creative types the concept of business planning seems tantamount to extinguishing creative mojo and about as enjoyable as poking yourself in the eye.    But as Thoreau so aptly put it “If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.”

Sure the road to great creative success is often lined by lucky breaks and serendipitous turns of fate, but too often the road is also paved with poverty, depression and mind numbingly banal day jobs. As creatives we have lofty dreams but succumb to inertia when it comes to action, at other times we are a frenzy of production, and sometimes we work so hard that our dogged attempts to carve out a living from our ‘art’ kills the creative passion.

This is where the business plan comes into its own.  Whether you’re a visionary dreamer, prolific creator or master hard worker, all three aspects need to be pumping in unison – and to me there are three core ingredients for achieving your creative goals.  Vision, direction and hard work. They’re all important.  They’re all essential. I think of it as going on a road trip.  You need to work out where you’re going, check your road map and plan out your route and finally jump in the car and drive.

I meet lots of artists and creative people who have one or two of these factors down pat.  They have ideas, drive and passion in spades, but they also have cupboards filled with unsold CDs and spare rooms lined with galleries full of artwork.  Put a plan in place and you can create a framework that supports the areas you struggle with and nurtures the aspects you’ve refined.

If you think some support in creating a workable and visionary plan would help you get on track why not join me and other creative types for a weekend of plotting and planning on November 15 and 16 at the community centre in Brunswick Heads?

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