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Jeff Immelt, the CEO of General Electric, once said that he has only two items in his job description: One is to retire with the value of the company exceeding that when he took over and the other is to find a successor.
Succession planning acknowledges that your team members will not be with a business indefinitely. It provides a plan and process for addressing the changes that will occur when they leave.
You often hear of public companies ‘grooming a successor’ for the CEO position or other lead roles, where the purpose is to create leadership continuity so that it remains business as usual when the current leader retires.
The same need exists in privately held businesses although you must go further to consider not just retiring from your job but your exit strategy options as an owner.
Succession planning is not just for business owners who are expecting to exit an industry in the near future. It is never too early to start planning. Those business owners that do start early will find they have the greatest amount of control over the timing, nature and profitability of their exit.
A succession plan helps your organisation in the following ways:
Maximize your exit options: Plan and put the wheels in motion for selling the business on your terms.
High performer retention:
Reward and retain talented team members by including them in your succession plans. Demonstrate your loyalty by promoting from within.
Recruiting effectiveness: By clearly understanding your workforce needs in advance, succession planning creates the opportunity for you to pro-actively initiate recruitment and to do a thorough job.
As you would expect, many of our clients have been through the process of putting in place a succession plan or selling their business, so if this is something you feel you should be considering, feel free to get in touch.
As a new semester of University study begins, the opportunity to access several tax deductions for work related self-education expenses arises with students incurring significant outlays to fund their studies.
In order to claim self-education expenses, a direct connection must exist between your course of study and your current employment by either:
This means that expenses related to courses undertaken prior to obtaining a new job cannot be claimed, as well as expenses related to courses which are in a completely different field to the one which you work in.
Self-education expenses available to be claimed as a tax deduction include:
If your study requires you to stay away from home overnight, you may also claim the cost of meals and accommodation while travelling, as well as the cost for work related seminars or conferences.
Motor vehicle expenses are also able to be claimed for your trips between home and your place of study, as well as from work to your place of study.
Work related self-education expenses which are not tax deductible include meals purchased on campus or on normal travel between home and your educational institution, as well as HECS repayments.
For any further information on work related self-education expenses, feel free to contact our office.