A large proportion of beef businesses are family run, yet succession of these businesses often just happens rather than being planned.

Seventy per cent of family-run farm businesses never make it to the second generation and I’m sure beef businesses would fare no better.

Experience shows that the primary reason for such a dismal survival rate lies in poor or non-existent succession planning even though there is genuine desire by most owners to see continuation in the family.

Mandi McLeod of Grant Thornton says that by nature, farmers are hard workers who prefer to do things for themselves.

Usually they are so busy with the daily management and operation of their farm, they postpone succession planning.

The reasons for postponement can be varied. They may not relish the thought of no longer running the business they worked so hard to establish.

They may have a reluctance to give up their business, since it may signal their own ageing or infirmity.

There may be strong emotional attachments to their farm business.

If there is no family member suited to taking over the farm, the owner could be reluctant to discuss this for fear of causing pain.

Owners who dislike giving up control of their business should realise that sooner or later, they will in fact do so, even if the reason is their death.

Succession planning lets them keep control by deciding how they will pass it on, while they are alive.

Achieving successful continuation of a family-owned business requires that all family members communicate rationally and objectively to develop a succession plan.

This takes time as well as nurturing and prompting, says Mandi.

Using experienced, independent professional advisors provides a catalyst for the planning and implementation.

They can be used to help accelerate the process of objective discussion resulting in open and thoughtful consideration of all the issues.

Once completed the plan should not be set in stone. Good succession plans are revisited periodically and revised to address the business’, owners’ and successors’ changing circumstances.

Proper succession doesn’t just happen, it needs to be planned and if your business does not have one, maybe it is a good time to start the process.