Small business BIG growth®
Words by John Di Natale, Founder & Managing Director of BIGthink! Business Booster
If you own a business, no-one will be surprised to discover you work hard. Long hours spent building, growing and maintaining a business are pretty much the norm.
Of course, small-business owners are dreaming of an enjoyable, financially secure retirement but not all have a plan for how they will make that happen. According to research from accounting firm Bentleys, only 57 per cent of SME owners reported having a “strategy” in place for their retirement. Less than half (48 per cent) are confident they will be able to afford the lifestyle they want in retirement.
The Voice of Australian Business Survey, a national survey of SMEs across all industries and regions, asked SME owners how they would fund their retirement. This is the breakdown of answers:
- Reliance on savings – 38%
- Income from rent or other investments – 35%
- The age pension – 28 per cent
- Downsizing the current house – 21%
- Selling their business – 20 per cent
So, after years of working, spending so much time, energy and passion on building their business, a massive 65% plan to rely on savings, downsizing or worse still, the pension. Just over 75% do not have a self-managed super fund. To me, this is seriously disturbing data! Its fine to work hard building a business – I completely get that – but not having a good strategy for maintaining your income and lifestyle when you want to slow down a little seems almost negligent. Making your business work hard for you should be part of that strategy.
One of the key things to consider is investing in assets outside your business that generate income and grow in capital value. Another is taking advantage of the tax benefits in superannuation structures particularly through a self-managed super fund. Of course, you should also understand and implement effective tax strategies across all your activities to avoid paying more than you should. These are the things that will ensure your business looks after you long after you stop working in it.
You may be great at running your business, but more than likely, the things I’ve just mentioned are not your areas of expertise. Don’t wait for a new year, or new financial year or your next birthday to get working on your plan. Get some expert advice now and get your plan working for you. Chat to us to find out more.
JOHN DI NATALE
John Di Natale is Founder and Managing Director of BIGthink! Business Booster®, a highly sought-after speaker and business growth specialist. The BIGthink! Business Booster programs are specifically designed to help you grow your business faster and build the life you really want.