Do you have a succession plan in place for your business?

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Who would take the reins of your family business if you had to take a step back from it? Turns out just one-in-six businesses have a proper plan in place. But rest assured you can develop your own succession plan fairly painlessly, with the help of a new guide.

So … it turns out the Murdochs aren’t alone when it comes to succession headaches.

Latest family business data from KPMG shows that just 17% of Australian family businesses have a documented succession plan to safeguard the longevity of their business.

That means a whopping 83% of businesses intend to wing it and do it on the fly.

Fortunately, the newly released ‘Introductory Guide to Family Business Succession Planning’ provides a step-by-step guide to passing the family business on to the next generation.

“Succession planning can be challenging,” Family Business Australia (FBA) CEO Greg Griffith says.

“But with the right approach, supported by quality information and advice, you can achieve rewarding outcomes.”

Why it’s important to have a plan in place

Australian Small Business and Family Enterprise Ombudsman Kate Carnell says there has never been a more important time to initiate a succession plan, given the highest proportion of business owners are aged between 45 and 59 years.

“Australia’s most successful family business stories – and there are many – are a result of well-executed succession planning,” Ms Carnell says.

“More than 60% of employing small business owners are approaching retirement age. This generational shift presents a number of challenges for the sector and the economy more broadly as some business owners may find it difficult to attract a buyer.”

Mr Griffith adds the easy-to-read guide offers tips on how to handle the kinds of tense conversations that can occur between family members throughout the transition phase.

“The key to families working well together is to have really open and honest communication – which can be difficult when your boss, colleague or direct report is also a member of your family,” Mr Griffith says.

“Our succession planning guide offers practical tips to ensure an orderly transition process.”

Understanding your family business’s finance situation

One critical area highlighted in the guide is the importance of your successor understanding your family business’s finance situation.

“You may also want to engage people outside the family and the business. In our experience, businesses can benefit from guidance from advisors in areas such as business finance: to understand the nuances of your family and business finances,” the report states.

Now, we understand that money and finances can be a difficult subject to discuss with family members.

So if you’re thinking of passing the baton to a family member – and you’d like help bringing them up-to-speed on your business’s finance obligations, opportunities and outlook – then please get in touch today.

We’re here to help your business succeed now, and in the hands of the next generation (engage!).

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Digital transformation: how does your business compare?

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How well placed is your retail business when it comes to its digital transformation? Today we’ll look at some of the ways your competitors might be complementing their bricks and mortar stores with online empires.

For some retailers, COVID-19 was the death knell for their business. For others, it gave a much-needed nudge to supplement in-store sales with thriving online hubs.

So how well did you transform your business compared to your competitors in 2020?

Well, Retail Express conducted a benchmarking study of 22,000 Australian and New Zealand retailers across multiple sectors throughout 2020.

It looked at something called “omni-channel” retail, which is defined as “an approach to sales that focuses on providing seamless customer experience whether the client is shopping online, from a mobile device, a laptop or in a brick-and-mortar store”.

The study’s key findings

Founder and CEO of Retail Express, Aaron Blackman, says “the quality of a retailer’s eCommerce store, Click & Collect services and home delivery speed have now become key factors in who consumers decide to shop with.”

And the study demonstrates significant opportunities for Australian retail businesses to improve, with less than a third of surveyed retailers offering key omni-channel practices:

Click and collect: 26% of retailers offer this service

Display stock in store on website: 14%

Display live inventory available for online orders: 3%

Ship from store: 21%

Cross-channel gift vouchers: 26%

Inter-store stock transfers: 21%

Pre-orders: 13%

Investing in tech moving forward

As a business owner, it’s important not to think of 2020 as a once-off. Instead, consider that disruption is the new normal.

As such, Mr Blackman says retailers should be constantly thinking of ways to improve their omni-channel offerings.

“Just offering online shopping with Click & Collect will no longer be a competitive advantage, same day Click & Collect, and the speed of home delivery will be the benchmark,” he suggests.

In 2021 and beyond, digital transformation will be a significant priority as retailers look for ways to adapt to future disruptions, adds Mr Blackman.

“Now is the time for retailers to plan and design a robust and flexible operating model including a review of current systems and technology looking for all possible efficiency gains,” he says.

Get in touch

If you think now is the time to invest in your digital offerings, then get in touch today to discuss your funding options.

Obtaining the right finance is an important step when it comes to implementing the right technology, processes and personnel to fund your business’s future.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Record-breaking: 5 big property trends in 2021

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After a bumpy 2020, 2021 is already rewriting the record books. From property prices, to interest rates, to refinancing – no matter which way you look records are being broken. Today we’ll look at why property market sentiment is riding so high.

How quickly things can turn around.

It wasn’t too long ago (9-10 months, to be more precise) that many highly-regarded economists were predicting property prices could plummet 30% due to COVID-19.

Instead, now we’re seeing official RBA documents predict that house prices could increase 30% over the next three years, so long as the official cash rate remains near record low levels (at or below 0.5%).

Suffice to say, market sentiment is soaring. So let’s take a look at some of the records currently being broken.

1. Record high housing values

Australian housing values have just reached a new record high as prices continue to rise across the country, according to CoreLogic.

In fact, housing values have surpassed pre-COVID levels by 1.0%, and the index is 0.7% higher than the previous September 2017 peak.

Every capital city and rest-of-state region recorded a rise in housing values in January, ranging from a 2.3% surge in Darwin to a relatively mild 0.4% rise in Sydney and Melbourne.

And unsurprisingly, regional housing values are rising at more than twice the pace of capital city markets due to COVID-19.

“Better housing affordability, an opportunity for a lifestyle upgrade and lower density housing options are factors that might be contributing to this trend, along with the new found popularity of remote working arrangements,” says CoreLogic’s research director, Tim Lawless.

2. Record low interest rates

In case you missed it, the RBA cut the official cash rate three times in 2020, with the last reduction in November taking the rate to just 0.1%.

At the same time, competition amongst lenders is fierce, with many offering record-low home loan rates in a bid to win over as many customers as possible.

3. Record high refinancing numbers

With record-low interest rates, it makes sense that we’re also seeing a record number of mortgage holders refinance their home loans to save themselves thousands of dollars.

According to ABS data, last year, the total number of home loan customers who switched providers increased by 27% – from 143,664 in 2019 to 182,016 in 2020.

And experts are predicting the number of externally refinanced loans will grow by 9% this year, according to a recent Finder survey, meaning nearly 200,000 Aussies will switch to another lender in 2021.

4. Record house building approvals

Private house approvals rose for the sixth consecutive month in December and reached a record high, according to Australian Bureau of Statistics (ABS) data.

In fact, private house building approvals surged 55.6% over the year.

“Federal and state housing stimulus measures (such as HomeBuilder), along with record low-interest rates have contributed to strong demand for detached dwellings,” says Daniel Rossi, Director of Construction Statistics at the ABS.

5. Record-high market positivity

With all of the above in mind, it’s no wonder that buyer confidence is surging.

In fact, positive sentiment among those in the property market has reached a record high, and negative sentiment is at an all-time low, according to ME Bank’s latest Quarterly Property Sentiment Report.

The buoyed sentiment is being supported by expectations for residential property price increases, higher levels of market activity and a combination of record-low interest rates and government stimulus incentives, says ME Bank.

That’s pretty much everything we’ve just touched upon today.

So, if you’re feeling pretty confident yourself and are looking to buy, or you think you’re overdue for refinancing, get in touch today.

We’re here to help you with all your funding and refinancing needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

New year, new you: 3 quick and easy finance resolutions

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Whenever we think of New Year’s resolutions, the first thing that comes to mind is a health kick. But here are three (easy) New Year’s resolutions that’ll help improve your financial wellbeing in 2021.

Below we’ll run you through three straightforward, and most importantly, achievable New Year’s resolutions to set yourself this year (and not a diet or boot camp in sight!).

1. Get a home loan health check

Quick question (no judgement): do you know the interest rate on your home loan?

Don’t stress if you don’t, studies show that about half of mortgage holders can’t recall their home loan interest rate.

But it does beg the question: if you don’t know your rate, how do you know whether or not you’re getting a good deal on your loan? You could very well be paying too much.

This is why making a home loan health check your New Year’s resolution is so important, particularly with interest rates at record low levels after a series of RBA cash rate cuts.

Indeed, a recent RBA study found that for loans written four years ago, borrowers are charged an average of 40 basis points higher interest than new loans.

So if it’s been a while since you’ve refinanced – so long that you can’t recall your rate – then it’s probably time to get in touch for a home loan health check to see if you can get a better deal.

Rest assured we’ll make it quick and painless. Simply get the ball rolling by giving us a call today.

2. Set yourself a financial or lifestyle goal

If you’re not back at work yet, use this precious time to carefully consider what financial goals you want to achieve in 2021.

With renewed post-COVID optimism on the horizon, now might be time to launch that business idea you’ve been thinking about.

Perhaps it’s time to upgrade from an apartment to your first house. Or with international travel on hold for a while, maybe now’s a good opportunity to explore Australia with a new set of wheels.

Whatever your flavour, consider taking stock of what you want to achieve in 2021 so that you can work out a plan to achieve it.

And if you’re unsure about how you’ll finance that goal, we’re here to discuss your funding options. We can help you work out whether you might be able to make them a reality in 2021, or if it’s more realistic to work towards 2022 instead.

3. Cut back on your microtransactions

Once you’ve identified a big financial goal to hit in 2021, you’ll want to start saving towards it.

But micro-transactions – purchases that are low in cost and trivial in nature – can be a real obstacle.

For example, did you know that buying a $4 takeaway coffee each day costs you a whopping $1460 per year, whereas making it yourself using a french press or aeropress costs just $260.

That’s a saving of $1200.

Other micro-transactions that most families can cut back on include alcohol, take-away food such as Uber Eats, gym memberships, and multiple entertainment subscriptions such as Spotify, Netflix and Foxtel.

With a little bit of budget tinkering, you can save yourself hundreds – even thousands – of dollars each month.

So what’s your first step?

That’s easy – get in touch today for resolution #1: a home loan health check.

There’s a reason tens of thousands of families are currently refinancing their home loans: competition among lenders is fierce.

And by getting the ball rolling on resolution #1, you’ll also be contributing towards resolutions #2 and #3 by saving money that you can put towards your 2021 financial goal.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Love thy neighbour: how to protect your home these summer holidays

How comfortable do you feel leaving your home unattended when you go on holidays? Turns out that those who know their neighbours best have more peace of mind.

Remember The Wet Bandits from Home Alone?

It was their modus operandi to case out families going on holidays before robbing their homes over Christmas.

When you consider that insurer QBE sees up to 15% more theft claims over the summer holiday period than any other time of year, it was a pretty clever little plotline.

But, it turns out that you don’t have to leave your eight-year-old kid home alone to fend off the hapless crooks.

It’s much simpler (and safer) to get to know your neighbour – which is something Australians have been doing a lot better this year thanks to the COVID-19 lockdowns.

Neighbourhood watch

More than 80% of Australians spent more time at home during 2020 than ever before, and QBE’s research reveals this may have helped us all become better neighbours.

In fact, one in three Australians claim they know their neighbours better now than in previous years, and 61% say they’d like an even better relationship with their neighbour, especially if it could improve their home security.

It’s not surprising then, that three in four Australians say they feel more comfortable going on holidays if they know their neighbours are keeping an eye on things.

Indeed, 71% of neighbours interviewed claim they’d record a vehicle number plate, 60% would call the police, 47% would give their neighbours a call, and (a very bold) 28% would even approach the suspicious party.

How to prepare ahead of your summer trip

With state borders starting to reopen and interstate travel resuming, it’s important to take relevant safety precautions to protect your household belongings this holiday season.

“If you’re not in the habit of letting your neighbours know when you go away, now would be a great time to start,” says QBE’s chief customer officer, personal lines, Eleanor Debelle.

“Aside from increasing the security of your home, it may also strengthen the relationship you’ve built during 2020.”

Here are QBE’s top five tips to secure your home these holidays

1. Ask a neighbour to check on your property, collect the mail, mow your lawn, or put away bins.

2. Walk around your property and check doors, windows and locks.

3. Make sure valuables are out of sight or given to a trusted person to look after. The most common items stolen include jewellery, bags, laptops, phones, rings, keys and tools.

4. Set a burglar alarm.

5. Set timer switches for lighting.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.