let's talk business march 2015
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DESCRIPTIONPowers' Quarterly Magazine, Let's Talk Business for March 2015. Topics covered include Beef Australia 2015, Rural Supplements, Bonnie Doone Reds, Paperless ATO, 5 Tips for Hiring in a Small Business and more!
Also inside this issue
Page 2 Beef 2015: The Countdown Has
Page 3 Client Spotlight: Rural Supplements
& Bonnie Doone Beef
Page 4 Passing The Torch: The Importance
Of Succession Planning
Page 5 The ATO Goes Paperless
Page 6 5 Tips to Ease the Small Business
Page 7 A New Era For Powers Agribusiness
Page 8 Lets Talk Powers
MARCH 2015 Issue
B E E F A U S T R A L I A
Beef Australia 2015 is happening from 4 9 May 2015 at the
Rockhampton Show Grounds. Powers will be setting up camp
at our trade fair stall in the Sidney Kidman Indoor Pavilion for
2 0 1 5T H E C O U N T D O W N
H A S B E G U N
LETS TALK...BUSINESS Page 2
by Vickie WhitePrincipal POWERS ACCOUNTANTS & ADVISORS
Beef Australia 2015 is happening from 4 9 May 2015 at the Rockhampton Show Grounds. Beef Australia 2015 is Australias National Beef Exposition and has been running since 1988.
Taking place every three years, 2012s event saw over 85,000 people attend. Beef Australia 2015 brings together all facets of the beef industry to celebrate successes, learn from experiences and prepare for the future in what can be described as a tumultuous industry at best. We recognise the importance of this event to the industry and to our clients, so will be setting up camp at our trade fair stall in the Sidney Kidman Indoor Pavilion for the week.
However, the point of Beef Australia 2015 is not just to have a chat. With so many special guests lined up for the different events, Beef Australia 2015 is a chance to learn from the experts.
Our special guest is Kerry Lonergan from ABC Landline, who will be hosting Powers seminar. The seminar, which
will take place on Wednesday 6 May at 11 a.m. in the James Lawrence Pavilion, will include a Q&A discussion with a panel of experts including Ian Congram and Geoff Arnold from Powers, Westpac and QRAA representatives and some of our own clients.
Titled, Having your steak and eating it, the panel will discuss succession planning and how farmers can transfer their legacy to the next generation while protecting their lifestyle in retirement.
Be sure to buy your tickets in advance because they are selling fast! Details can be found on the front page of our website www.powers.net.au.
Other events that Powers are booking into our calendars are the Rural Press Club Breakfast, the Sportsmans Lunch on Friday and the Gala Ball on Saturday evening.
For more information about the weeks events, go to: www.beefaustralia.com.au
THE COUNTDOWN HAS BEGUN
Any Australian Beef Producer can tell you why Powers are excited about the second week of May.
LETS TALK...BUSINESS Page 3
Bonnie Doone is a picturesque property, nestled west of the Coominglah ranges near Monto, home to Beef Producers Grant & Carly Burnham. Grant, a third generation Beef Producer and his wife Carly, share a passion for the bush.
The Burnhams pursue a balance between art and science - using research and data to implement leading edge management practices and working with the flow of nature to ensure harmonies balance all parts of the business, family and community.
Grant and Carly believe fertility is the biggest production driver in any beef cattle business and have selected heavily on this trait. Bonnie Doone Reds (Red Brangus
Stud) is the result of 15 years of pressure on selection and culminating in highly fertile bulls bred from a commercially focused herd.
At Bonnie Doone the philosophy is to give back more than is taken. This applies to all areas of the property, business and people, with Bonnie Doone selling directly to families who are increasingly aware of where and how their food is grown.
Three generations of breeding beef cattle is the platform which the Burnhams have used as their stable base to move into what they believe is the future of beef cattle production systems.
To learn about Bonnie Doone Beef check out their website: www.bonniedoone.com.au
To learn about Rural Supplements, give them a call on 1300 272 545
Rural Supplements are one of the States leading Stock Feed and Production companies. Founded by Barry Williams, Darren Childs and Craig Atkinson in 2005 and based in Central Queensland, Rural Supplements business has expanded significantly, now servicing all of Queensland as well as parts of the Northern Territory and New South Wales. The concept for Rural Supplements came through this group of livestock industry experts belief that there was a need for a more specific focus on the feeding options and requirements for Central Queensland livestock.
Barry, Darren and Craigs experience is the driver behind many of the unique and industry leading products offered by Rural Supplements. Now covering all aspects of livestock supplementation, Rural Supplements offers:
Molasses based pasture supplements (bulk depot and trough deliveries)
Turbo Power Molasses Ration Molasses based silage concentrates Protein meal based concentrates for Grain, Silage
and Molasses Rations Weaner, Breeder and Production Dry Licks Stockfeed Grain Rations
They believe the key to their success and continued growth lies in a commitment to customer satisfaction, consistently high quality products and understanding the clients needs. By partnering with some of the worlds leading Research and Development companies in animal health and nutrition they continue to stay at the forefront of advances made in the industry.
CLIENT SPOTLIGHTRURAL SUPPLEMENTS
CLIENT SPOTLIGHTBONNIE DOONE BEEF
LETS TALK...BUSINESS Page 4
Family businesses account for a staggering 70% of the businesses in Australia with the estimated wealth of the sector being $4.3 Trillion. According to a recent survey, 81% of owners intend to retire in the next 10 years generating a wealth transfer of $3.5 Trillion.
Of current family business owners, 88% believe the same family or families will control their business in five years, yet succession statistics contradict this belief.
Only about 30% of family and businesses survive into the second generation, 12% remain viable into the third generation and roughly 3% of all family businesses operate into the fourth generation and beyond. The statistics reveal a disconnect between the optimistic belief of todays family business owners and the reality of the massive failure of family companies to survive through the generations.
Research indicates that family business failures can essentially be traced to one factor: An unfortunate lack of planning for family business succession.
Most family business owners put off their succession planning because they do not want to think about their retirement, disability or death, however, planning for business succession should be a priority in every family owned business. A family business owners decision to eventually retire is not as simple as no longer going to the office.
Key questions need to be answered before the family owned business owner can leave the business:
will he or she have enough money at retirement; who is going to own and manage the business; how will ownership and management be transferred to
new owners; and should the business be carried on or sold to a third
An effective business succession seeks to alleviate the above issues by setting up a smooth transition between the family business owner and the future owners of the business.
Growth and SustainabilityFamily businesses often have intimate histories and complex cultures that are hard for outsiders to understand or replicate. Families today are often more complicated and less traditional than they once were. Fortunately, with focus and planning, this can be easily overcome by paying attention to the details.
For most family and closely held businesses, planning for succession is the toughest and most critical challenge they face. Yet succession planning can also be a great opportunity to maximise opportunities and create a multi-generational institution that embodies the founders mission and values long after the owner/operator is gone. The most critical issues facing family businesses are
PASSING THE TORCH
Succession planning is a growing concern, yet most business owners keep their head in the sand until it is too late.
by Ian CongramManaging Director POWERS FINANCIAL GROUP
LETS TALK...BUSINESS Page 5
family-based issues more than they are business-based issues.
Key issues include:
1. Alignment of family interests. Alignment of interests between current owners and others becomes more pronounced as members retire and hand over the reins to the new generation, while at the same time looking to the company for their retirement income.
2. Balancing of financial returns. Creating buyout agreements is challenging without the right advice. When the retiring generation looks to the value of their interest, they tend to look to a number on the balance sheet. In fact, the true value of a business should be based on an earnings capitalisation model, a concept unfamiliar to many smaller family companies.
3. Inter-family disputes. The interest of one family member may not be aligned with another family member. These situations can become even more difficult where, e.g. a divorce of a family business owner or a death and the surviving spouse is holding stock (and voting rights) but is not involved in the business.
4. Estate and Inheritance issues. These include taxes and probate delays upon the death of a family business owner.
To help ease this struggl