Family businesses are vital to the UK economy and contribute hundreds of billions to the UK’s GDP. They have unique advantages including shared values, enduring trust, and a central commitment to the long term future of the business. However, like any other business they must also consider the challenges that confront them, and for a family run business, clear and sustainable governance can sometimes be a key challenge. There are of course two types of governance relevant to

Sometimes, the informality of working in some family business can be a great blessing… or a dreadful curse. Here, Rochelle Clarke of Succession Strength looks at some of the ways that can enhance and maintain good family business relationships. For some successors and other family members, the relaxed atmosphere of working with family provides welcome space to be themselves. For others, it frustratingly turns work/life balance into a hopeless illusion. Sooner or later, most

How can you ensure that your business reflects the character of your family? Could an internal brand be part of the solution? The defining feature of a family business is the family – whether that’s a couple, siblings, or a multi-generational dynasty. Whatever the configuration might be, if you’re going to identify as a family business, you want to be able to see yourself in it. It might sound abstract and impersonal to talk about your family as part of a brand strategy, but

Some companies use their status as a family business as part of their brand, while others choose not to. What are the advantages of a family business brand? And is it something you could consider? Michael Gough explains more. 85% of all companies in Britain are family businesses – owned by one or more members of a single family. They employ half of all private-sector employees, making them a vital part of the economy. But you won’t always recognise a family firm when you see

For a family-owned business nothing is more important to an organisation than the nurturing and protection of its reputation. Having a family enterprise is not only a privilege – it’s also a huge responsibility. Unlike many boards of publicly owned entities, due to their personal connection, families have additional emotional investment in their business. They are in it for the long haul to create a legacy for their family. Custodians of valuable assets that provide for their

Communication in a family business always seems to be a moving feast. Someone, somewhere, in the family, may appear to be out of alignment with business decisions or strategies or family roles or responsibilities. And yet, communication is a core competency that all family members and staff employed in the business must have to effectively operate and reach their goals. Here are 5 tips to consider discussing at your next family meeting: 1. Do not try to discuss and resolve fa

Given their portrayals in the media, it might be easy to dismiss family businesses as hotbeds of power playing, favour currying, and back-stabbing—preoccupations that can hurt the company, the family, or both. Think of the Murdochs and NewsCorp, or the Redstones and National Amusements, to name just two. But despite the headline-grabbing tales, many family businesses have enjoyed success for decades, even centuries. For instance, the Italian winemaker Marchesi Antinori, estab

“What do you mean we can’t pay dividends this year?” Elisa was incredulous. The board of the watch company she and her husband Mark had founded had just reviewed projected end-of-year performance. Usually this meeting was a celebration of another incremental step forward, with moderate growth, no debt, and significant dividends, which Elisa and Mark used to support their comfortable lifestyle and charitable donations. This year, however, revenue growth was way up, but profits

When crisis strikes a family business, advisers need a clear plan, with an emphasis on honesty, to minimise reputational damage Many businesses have been through a tough time over the past few years. Public mistrust of politicians and bankers has spilled over into wider cynicism about businesses generally. The ‘information age’ also means journalists are no longer the only people who tell us about the world; the web allows anyone to assume the role of public commentator. With

Conflict happens in any enterprise. However, when your co-workers are also your family, conflict can take on new levels of complication and affect both familial and business operations. There are many common sources of conflict in a family business: Everyday spats over business operations, conflicts between older and younger generations over succession or the future of the business, or resentment stemming from feelings that certain family members are being compensated in exce