Services

Profit Growth

Small business owners are largely ignoring their superannuation needs, instead relying on their business to provide for their retirement.

Only 60% of owner managers have superannuation, with the median total superannuation balance currently at $11,200.

Almost 40% of small business owners have no superannuation at all and secondly for those with superannuation the average balance is far too low to allow for a comfortable lifestyle during retirement.

Many business owners believe their ‘business is their super’. Yet, in Australia, 85% of the 1.6 million small businesses have less than five employees and are predominantly family owned (approximately 96%), rather than owned by a traditional head of the business.

Do you really want your superannuation to depend on your children being happy to sell part, or all, of the business, or members of your family having the capital to buy you out of the business?

Profit levels can rise and fall over the years, or you may need to inject further capital into a struggling business – it’s important not to jeopardise your future lifestyle because you are too busy looking after your business.

The average annual income for small businesses is $279,270, with expenses topping $247,292 – that’s only an average profit of $32,000 (13.4% per year).

Is this enough to fund your retirement, look after your family members and live on right now?

Research now suggests that an income of 'at least $50,000' a year is what most people want during retirement.

And for this, an investment target of at least $410,000 is necessary, for a retirement period of twenty years.

Can your business guarantee this income?

If not, it’s time to get a plan together that doesn’t put your future at risk.

Business owners wouldn’t ignore the future financial direction of their business so they certainly shouldn’t overlook their own future needs.

We are already seeing the signs.

By the year 2017, futurists predict we will see the fruition of life-changing trends. Medical technology may lead to a life span of 150 years; global cooperation may lead to businesses not just exporting but emigrating to other countries; niche marketing may lead to each individual becoming his or her own small business.

Profit Growth is relative to the future. Standard Edge helps business owners assess the future trends, thereby anticipating the changes for business and profit growth.