For many business owners and farming families, it isn’t just a business or land – it’s your legacy. It’s where you’ve poured your time, energy and passion for decades. But the reality is every family-owned business will change hands one day, begging the question, will that change happen smoothly… or create stress and tension?

Succession planning is about people – ensuring your hard work doesn’t unravel because conversations got too hard or were left too late. Research shows most family businesses don’t have a formal succession plan, and that’s a huge risk. Without a clear plan, wealth can be lost, relationships strained and opportunities missed.

Where do you start?

It’s about communication – talk early and talk open. Open family conversations about expectations and roles can prevent misunderstandings later. It’s not always easy, emotions can run deep when identity and livelihood are tied to the land or business, but clear communication now can save tension and heartache later.

It’s crucial to think beyond “who gets what.” A good plan considers the financial health of the enterprise, the skills of the next generation and whether keeping the business in the family is the right move. If it is given or left to a family member, are there provisions for those who are left out?

Sometimes, selling part - or all - of the business is the best option. If sold to family, funding the sale and tax outcomes should be considered. Also you may wish to consider how money is invested. For example, can it be invested more tax effectively in super? What matters is making decisions that protect your lifestyle, future and your legacy.

Timing is everything

Waiting until you’re ready to retire can be too late. Preparing your business for transition can take years, not months. That means tidying up financials, reducing reliance on one key person and making sure systems and solid processes are in place. A farm that runs well without you is far more attractive, regardless of whether you plan to keep it in the family or sell. What are the tax implications of selling? Small business capital gains tax concessions may be available, but eligibility requirements for concessions must be met.

And make sure you consider yourself! Life after running a business or farm can feel daunting. What will you do with your time? Where will you live? How will you manage the proceeds if you choose to sell? Many owners underestimate the challenge of moving from being hands on to leaving their life’s work behind. Having a clear vision for your next chapter makes the transition easier.