08: Navigating the Complex Process of Business Succession and Exit with Kylie Wilson

01/08/24 • 22 min

Smarten Up! The Tax and Business Podcast

Business succession and exit planning is a complex, multifaceted process filled with potential pitfalls. In this information-packed episode, Sally speaks with lawyer Kylie Wilson, a specialist in business succession, on this crucial topic for business owners.
They explore several common scenarios - selling to a third party, transitioning to key employees, passing down to family members. Kylie brings her extensive experience to outline not only the opportunities in each case but also the disputes, legal consequences, and other complications that frequently arise when succession planning is inadequate.
From the nitty-gritty of structuring share sales to the critical emotional dynamics in family businesses, Sally and Kylie leave no stone unturned. They offer smart strategies and savvy advice to properly plan your own exit, avoid destructive conflicts, maximise sale value, and leave the legacy you envision.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

Key considerations when selling a business on the open market (04:23)
Strategies for transitioning a business to key employees (09:29)
Complex dynamics and estate planning challenges with family business succession (11:24)
The importance of proper planning to minimise disputes and costs (19:19)

Whether you intend to sell to a third party or pass down to the next generation, every business owner should listen to understand what lies ahead and how to chart the optimal path forward. CONNECT WITH SALLY PRESTON
Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/

Key considerations when selling a business on the open market (04:23)
Strategies for transitioning a business to key employees (09:29)
Complex dynamics and estate planning challenges with family business succession (11:24)
The importance of proper planning to minimise disputes and costs (19:19)

Previous Episode

07: Setting Your Business Up For Success: Top 10 Things To Get You Started

For any aspiring entrepreneur ready to take the leap into business ownership, the landscape can seem daunting. Between permits, legal entities, taxes, accounting, insurance, banking, not to mention actually creating and selling your product or service, launching a company requires crossing many T’s and dotting many I’s.
It’s complex, but it doesn’t have to be overwhelming. In this episode, Sally draws from her real-world expertise to simplify the process and presents her top 10 steps that all entrepreneurs should take when embarking on their journey.
As an accountant turned entrepreneur herself, Sally understands the multitude of essential boxes business owners need to check before opening their doors. From concrete tasks like registering your business structure to conceptual musts like projecting profit margins, her actionable advice aims to prevent aspiring business owners from leaving loose ends that could create issues down the road.
ten Up! The Tax and Business Podcast, you’ll learn:

The 10 items you need to address when launching a business (0:55)
Choosing and establishing your business structure (2:20)
Registering your business entities and obtaining credentials (3:29)
Getting adequate insurance to mitigate risks (4:00)
Setting up financing and payment collection (4:30)
Understanding costs, pricing, and profit calculations (5:15)
Drafting terms and conditions, contracts, policies, etc. (6:25)
Implementing accounting systems and administrative processes (7:05)
Ensuring your product/service meets customer demand (8:00)
Marketing your business through digital channels (9:12)

Whether you’re still an aspiring entrepreneur unsure of how to get started or you’ve already begun putting the pieces together for your new business, you’ll come away with a checklist of concrete action steps needed to set your new venture up for sustainability and success.CONNECT WITH SALLY PRESTON
Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/

Next Episode

09: Is Your Side Gig a Hobby or a Business? Tax Facts You Should Know

Side hustles are more popular than ever. From rideshare driving to selling crafts online, people are finding creative ways to supplement their income. But if your side gig starts generating serious cash, you may suddenly have some not-so-fun tax obligations.
So how do you know if your hobby has crossed into business territory in the eyes of the taxman? What happens if you start racking up losses from your entrepreneurial experiments? Can you reduce the tax on your regular salary?
Finding clarity on these issues is critical. Get it wrong and you could face penalties, interest as well as the tax bill!
In this episode, Sally demystifies the complex issue of hobby vs business taxation. With her tax wisdom and personal experience moonlighting as a gym instructor, Sally provides practical insights for side hustlers.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

The difference between a hobby and a business for tax purposes. (00:54)
Factors that determine if an activity is a business or a hobby. (02:34)
Tax treatment and obligations if deemed a hobby vs. a business. (04:21)
Non-commercial loss rules for claiming business losses. (09:20)
Examples of applying the non-commercial loss rules. (13:12)
Key takeaways. (16:58)

Understanding if your side hustle is a hobby or business is crucial for tax compliance and unlocking key deductions. As Sally summarised, you need to evaluate your activities against factors like profit motive, repetition, systems, record keeping and more. CONNECT WITH SALLY PRESTON
Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/