iscoverAs more people endeavour to start their own small businesses, accounting professionals are urging business owners to establish effective succession plans and exit strategies.
‘Plan an exit strategy as you go’: Succession planning a must for SME owners
15 August 2025
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8 minute read
Recent data has revealed only 24 per cent of SME owners have a solidified succession plan in place for their inevitable exit, with accountants urging the business community to get ahead in outlining an effective strategy.
Speaking on a recent Under the Hood podcast episode, Sonia Gibson, Accounting Heart founder, said it was imperative for the health and long-term sustainability of a business to have a succession plan in place.
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“At the end of the day, it’s important because it not only impacts you, but also your family, the people that work in your businesses and your clients. There’s a lot of stakeholders in how you set yourself up for your eventual exit from your business,” she said.
“It’s a lot easier to plan an exit strategy as you go, rather than at the end when you’re planning on exiting. If you can put your processes and systems in place early and show their value and worth within your businesses, then it’s a whole lot easier to start systemising your business before you’ve got this unwieldy beast of a business that you have to reign back in.”
Insights from the MYOB Bi-Annual Business Monitor reinforced this perspective and encouraged SME owners to prepare for an intergenerational shift in ownership.
The research found 48 per cent of Baby Boomer business owners planned to exit in the next one to five years, while 75 per cent of Gen Z respondents planned on starting their own business.
Paul Robson, chief executive of MYOB, said that while this shift presented an opportunity for “ambitious young Australians”, business owners needed to ensure their business was primed for sale well in advance of their exit, if planning to sell.
“This wave of generational succession will create a shift in the way we define SMEs next decade. As Gen Z takes the reins of this community, fuelled by rapidly diversifying technology solutions, the way we interact with businesses, the way we buy and what we buy from SMEs will be materially different in 10 years’ time,” he said.
“Ensuring your business is future fit will be essential for existing business owners, to maximise business performance and build wealth. Futureproofing comes in many forms, from integrating AI for efficiencies, to digitising more and evaluating product mix.
“A great place to start is a conversation with a trusted advisor, such as your accountant or financial advisor, who can provide focus for the optimal business plan.”
Ainslie van Onselen, chief executive of CA ANZ, said the unexpected nature of daily life was another reason for small business owners to have an exit strategy in place, as it shouldn’t be a rushed decision if the time came to hand over a business.
Gibson added that creating an effective succession plan was about identifying values and the “true meaning” of a business.
“It is one of those things when it comes to these sorts of difficult decisions, you need to think about what your values are, what’s important to you and that it doesn’t matter what anyone else thinks. It’s about what you think,” she said.
“It’s not always about the money for people when they come to make the decision. It’s about what’s right for them.”
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