Britain's entrepreneurs are increasingly choosing to run businesses from home as rising commercial costs, greater flexibility and changing attitudes towards work reshape the country's small business landscape. New research from Dunster House, garden building specialists, found that almost half (46%) of home business owners now rely on their venture as their primary source of income, while a further 28% say it provides a significant financial contribution to their household finances. The findings suggest that home businesses have evolved far beyond side hustles, with many entrepreneurs deliberately building long-term businesses from spare bedrooms, garages, garden rooms, and other home workspaces. When asked what motivated them to start a home-based business, respondents overwhelmingly cited lifestyle benefits over financial necessity, with nearly half saying that a better work-life balance was their top motivator. Why are Brits choosing to run businesses from home? Motivation % of respondents Better work-life balance 47% Wanted to work remotely or from home 36% Wanted more flexibility 36% Turned a hobby or passion into a business 32% Wanted to leave their job 31% Wanted to spend more time with family 29% Started a side hustle to earn additional income 22% Renting commercial space was too expensive 14% COVID-19 prompted a change in direction 12% Although the data shows that quality-of-life factors dominate, cost remains an important consideration. Commercial property rents in the UK have risen by an average of 3.1% annually as of mid-2026, according to the Carter Jonas Commercial Market Outlook and with this rise, many entrepreneurs are choosing to invest in their own properties rather than commit to expensive premises. Christopher Murphy MBE, founder of Dunster House, said: "For many entrepreneurs, running a business from home removes one of the biggest barriers to getting started, the cost of commercial premises. As rents and operating costs continue to rise, more people are realising they don't need a high street unit or office lease to build a successful business. Home working has made entrepreneurship more accessible, allowing people to invest in growing their business rather than covering overheads." 55% regularly work evenings and weekends as home businesses blur work-life boundaries Despite the flexibility and freedom, there are some payoffs that are being experienced by those who do business out of their home. Many entrepreneurs admit that separating work and home life can be difficult. More than half (55%) say they regularly work evenings and weekends, while almost half (48%) have experienced loneliness or isolation because of running a business from home. Meanwhile, one in three (33%) have had customers unexpectedly turn up at their home, highlighting the difficulties many face in maintaining professional boundaries. The findings also reveal the growing pressure that businesses can place on domestic spaces, with 58% saying their enterprise has taken over parts of their personal living environment. To address these challenges, many entrepreneurs are investing heavily in dedicated workspaces. Nearly two-thirds (62%) have already spent money improving their workspace, with respondents investing an average of £5,170 into creating environments better suited to running a business. When asked what improvements they would make if budget were no obstacle, better broadband and Wi-Fi (34%), improved heating and air conditioning (34%), and a fully insulated garden office (32%) topped the list.

Succession can look remarkably orderly from the outside. A successor has been identified, the Board knows the timetable, advisers have addressed ownership, governance and tax, and the family may believe the difficult work has largely been done. Inside the business, however, succession often carries a very different emotional temperature. The predecessor may be wondering what happens to their identity, influence and legacy when they are no longer the person everyone turns to. The successor may be asking whether they are genuinely trusted to lead or merely tolerated because of their surname. Across the family there may be assumptions about entitlement, fairness and influence that were never fully discussed, while the executive team may be quietly questioning legitimacy, loyalty and where authority will really sit. Nobody needs to say “nepotism” aloud for the suggestion to affect credibility. The successor may feel pressure to prove that they belong, while the predecessor may feel an equally powerful responsibility to protect what they have spent decades building. Executives may find themselves recalibrating long-established relationships and wondering where influence now sits. These pressures can affect confidence, wellbeing, judgement and behaviour, but they do not remain personal for long. When uncertainty around authority, expectations or loyalty is left unresolved, it begins to undermine confidence, slow decision-making and weaken the organisation’s ability to perform. This is why succession cannot be treated simply as the transfer of a role. It changes what the executive leadership team, the culture and the organisation must be capable of carrying. A predecessor’s instinct to protect the business can become continued intervention. A successor’s desire to establish credibility can become overreach. An executive’s strength can become less effective when overused under pressure: decisiveness can become dominance, caution can slow change, loyalty can resist legitimate repositioning and confidence can close down challenge. Behavioural risk and ambiguity are heightened during transition and should therefore be de-risked deliberately. The Successor Does Not Inherit The Business Alone The next generation inherits a legacy, an executive team, a culture, relationships, structures and unwritten rules about how the organisation works. It also inherits an ambition, and that ambition may be different from the one that shaped the previous generation. The business may now be preparing for growth, acquisition, external investment, technology-led change or greater scale. The executive team that carried one era of the enterprise therefore needs to be considered against the demands of the next. This is not simply a question of competence. Senior executives bring motivations, values, strengths, preferences and relationships into a succession, and those factors influence how readily they align behind a new mandate. Some may need broader responsibility, others development, and some roles may need to be repositioned because the future business requires something different. Culture belongs in the same conversation because every leadership era leaves an imprint on how authority is exercised, how disagreement is handled, what behaviour is rewarded and whose judgement carries weight. The Board’s role is to distinguish between what should endure because it represents genuine family and enterprise value and what must evolve because the next phase requires it. Can The Organisation Carry The Succession? For Boards and family councils, this creates a more demanding assurance question: can the organisation carry the succession? By carry, I mean more than maintaining continuity after the handover. Can the executive team align around the next mandate, can authority operate clearly without constant reference to the previous generation, can decisions move at the pace required, can the culture accommodate a new leadership style while preserving what matters, and does the organisation have enough capability and management depth to deliver the ambition? The 5Ws Framework provides a practical way to test that readiness through five connected dimensions: Work, Workload, Workflow, Workplace and Workforce. Work asks what the enterprise must deliver in its next era and which responsibilities, relationships and value-creating activities need to transfer, move or change. Workload examines where responsibility is concentrated today and whether the future leadership structure has the capacity to carry it without recreating the predecessor’s dependency around a new person. Workflow considers how information, authority, accountability and decisions will move after the handover, particularly where historic relationships may continue to influence the formal structure. Workplace examines the environment in which the succession must operate, because culture is experienced through place as well as behaviour. That place may be an office, an operational site, a home office, a Teams meeting, a WhatsApp group or a leadership conversation taking place across borders and time zones. The Board should consider whether the same expectations of conduct, authority, challenge and accountability hold wherever work happens, and whether people have both the psychological safety to speak openly and the structural safety to know how decisions are made, concerns are escalated and boundaries are protected. Succession can expose differences between the formal organisation and the way people actually work, particularly when influence moves through informal digital channels. The question is therefore whether the workplace, physically and digitally, reinforces the culture and leadership model required for the next generation. Workforce considers whether the enterprise has the collective capability required to carry the next ambition. That includes the successor and the executive team around them, but it also requires an understanding of intergenerational dependencies: where knowledge, relationships, judgement and influence still sit with the senior generation, and how they will be transferred without losing what remains valuable. The workforce question is also changing as organisations introduce AI agents and automated capability alongside human roles. Boards increasingly need to understand how human judgement, institutional knowledge and AI-enabled work will operate together, where accountability remains human and whether the organisation has the capability to manage that interoperability safely and effectively. Alongside this sit the familiar but critical questions of executive alignment, values, motivations, leadership strengths and potential derailers, and whether development, clearer mandates, role redesign or changes in leadership composition are required for the next phase. Put lLeadership, Culture And Organisation On The Succession Agenda Ownership planning, governance, tax, legal arrangements and successor development remain fundamental, but they do not in themselves provide assurance that the enterprise is ready to carry the transition. A useful Board conversation therefore asks five further questions: What must this business deliver in its next era? Where does responsibility sit and can the future leadership structure carry it? Have authority, information and accountability been designed around the next leadership model? What must remain constant in the culture and what must evolve? Does the successor have the executive leadership team required to carry the next ambition? Perhaps the most revealing succession question is not simply whether the next generation is ready to inherit the business, but whether the business has been made ready for them to lead. A successful transition tests whether years of knowledge, authority, relationships and judgement have become organisational capability, whether the executive team is aligned around the next mandate and whether the culture can preserve the strength of the legacy while creating room for the future. For Boards, that means answering three connected questions with evidence rather than confidence alone: Have we prepared the right leader for what comes next? Have we aligned the executive leadership required to deliver it? And have we designed an organisation and culture capable of carrying the succession? When all three can be answered well, succession becomes more than a transfer between generations; it becomes the foundation for the next generation of enterprise value.

Family Business United (FBU), the independent media, membership and advocacy platform for the family business community, today announces a new partnership with Russ Haworth and Martin Stepek of The Family Business Partnership to bring The Path to the wider family business audience. The Path is an online development programme designed to help individuals within family firms build the personal foundations, not just the business skills, needed to thrive. It combines mindfulness practice with real world family business experience across eight modules, helping participants manage stress, strengthen relationships and lead with greater clarity and confidence. Why The Path, And Why Now Working in a family business brings a depth of complexity that strategy alone cannot resolve. Family members are often juggling multiple identities at once: leader, sibling, owner, parent, child. Underneath the roles and decisions sit personal expectations, deep loyalties and unspoken assumptions that shape how a family firm really functions. FBU has long championed the idea that succession, governance and next generation development are as much about people as they are about process. The Path gives individuals within family firms a structured, supported way to build the emotional resilience, communication skills and personal clarity that so often determine whether a transition, a difficult conversation or a change in role goes well. About The Path Available as a self guided course or a facilitated cohort with weekly group sessions, The Path takes participants through eight modules covering mindfulness, focus, resilience, stress management, navigating change, handling emotions, and building a personal plan for lasting change. The cohort option includes a guarantee: if participants do not feel the benefit by week four, their place is bought back in full. Meet The Guides Russ Haworth ACFBA is a UK based family business adviser who holds the Advanced Certificate in Family Business Advising from the Family Firm Institute, one of the leading qualifications in the field. He founded The Family Business Partnership after moving from a career in financial planning and wealth management into full time work with family firms. Martin Stepek is a leading mindfulness teacher and long standing supporter of the family business community. A former director of his own family's business, he founded the Scottish Family Business Association and has spent over 20 years helping families navigate the personal and emotional side of business life. He is also an author, poet and historian. What This Means For The FBU Community Through the partnership, FBU members and the wider family business audience will gain access to The Path alongside the practical, governance focused resources FBU already provides. It is a natural extension of FBU's mission: supporting the people behind the businesses, as well as the businesses themselves. As Paul Andrews, Founder and CEO of Family Business United explains, "Family businesses succeed or struggle on the strength of the relationships within them. We talk a great deal about governance, succession planning and structure, and rightly so, but the personal side of the equation is just as important. Russ and Martin have built something genuinely useful in The Path: a calm, practical way for people in family firms to strengthen their own foundations. I am delighted to bring it to the FBU community." Russ Haworth adds, "Working with families in business for the last 15 years has shown me that the strategic challenges are rarely the whole story. The Path was built to help individuals show up with more calm, confidence and clarity, whatever they are facing." "Partnering with FBU means we can reach many more people who are carrying that weight quietly, and give them somewhere to start." Martin Stepek completely agrees adding that "Mindfulness is not about escaping the pressures of family business life, it is about meeting them differently." "The Path gives people practical tools to pause, breathe and respond with intention rather than reaction. This partnership with FBU means those tools can reach the people who need them most." Ask yourself: when was the last time you had a safe space to reflect on the personal side of your role in the business, rather than just the operational demands of it? The Bottom Line The Path adds a new, personal dimension to FBU's support for the family business community, recognising that strong businesses are built by well supported people. The self guided course is available now, with places for the next guided cohort open for registration. For more information about The Path, take a look at the website via the link here

JCB is helping ring the changes in a Staffordshire Moorlands village with a £1,000 donation towards its church bell renovation project. The digger giant pledged support to Christchurch at Upper Tean, near Cheadle, for the newly restored bell which had been silent for more than a decade. Village businesses and parishioners clubbed together to fund the £8,500 restoration of the bell which dates back to the church’s founding in 1842, while the JCB donation will meet essential future maintenance costs. Since its relaunch last June, the bell has once more become a welcome part of village life. Team Vicar for Uttoxeter Area of Parishes, The Rev Joe Cant, said four parishioners share bell-ringing duties calling worshippers to Wednesday and Sunday services as well as pealing out to celebrate weddings. Meanwhile for funerals an age-old tradition has been revived with the bell striking three times to mark the death of a male and three times two for a female parishioner, followed by one ring for each year of their life. Rev Cant added: “The bell also holds a special place in the village’s history as its sister bell called employees to work each day at the historic Tean Mill which was a big employer. That bell went missing when the mill was renovated and turned into flats, so some villagers are particularly protective of this remaining one. “We really appreciate the support from JCB and knowing we have the costs already covered for the next round of maintenance gives us great peace of mind – it would take a lot of coffee mornings for us to raise this kind of money.” To find out more about Christchurch, Upper Tean services and events visit here.

Ready for store exclusive offers, all the best decorating brands under one roof and an expert team ready to serve all your decorating needs? Well, Brewers Bury St Edmunds-West is now open! Located on Unit 2, Arras Road, Blenheim Industrial Estate, IP33 3TX, the store is accessible off the A14 and situated next to Glasswells and Screwfix. To celebrate the opening of the new store, we’re giving out free goodie bags so you can get your hands on Brewers and Albany items. There will be free parking and our popular Collect Anytime service, featuring a simple, secure and convenient lockbox system. When ordering your goods, you'll be sent a code (unique to your order) by SMS so that you can access the secure lock box at a time that suits you. Don’t forget you can also place orders for Click & Collect on the Brewers website and take advantage of free delivery for account holders. The store has a wide range of products in store, including tinting facilities from Dulux, Crown, Albany, Little Greene, Farrow & Ball, Johnstone’s, Little Greene and Tikkurila mixed specifically for you to take away the very same day. Brewers Bury St Edmunds-West also features an inspirational showroom, filled with an array of designer paint brands and wallpaper books, giving you the confidence to choose your next scheme with ease. Head into Brewers Bury St Edmunds–West where the team will give you a warm welcome and offer the very best advice. Fancy 10% off your first two purchases plus free delivery? Get a Brewers DIY or PRO Trade Card

Penrhos Spirits, from Herefordshire, the small independent family-run craft distillery on Penrhos farm, announced it has been verified by BLab to achieve Certified B Corporation™ status. Joining a global movement of businesses meeting the highest verified standards of social and environmental performance, transparency and accountability. To mark the occasion and celebrate saving 1 million wonky blueberries from going to waste, Penrhos is also launching its first limited edition ‘Wonky Blueberry’ gin on 1st September. For a distillery built on sustainability from the very first bottle, the certification is an independent stamp on a founding philosophy that has defined Penrhos since day one from rescuing wonky and imperfect fruit from the farm that would otherwise go to waste, to becoming the first distillery in the UK to move from glass to 100% recycled aluminium bottles, cutting its packaging carbon footprint by an independently verified 91%. Founded in 2018 by fruit farmers, Penrhos was born on the family farm in Herefordshire, where a 250-year-old cow shed was converted into a small-batch, copper-still distillery. Every spirit begins with ‘imperfectly perfect’ fruit – the wonky raspberries, blueberries, cucumbers and apples deemed too knobbly or oddly-shaped for the supermarket shelf – grown on the farm and rescued from the waste stream. What started as a way to make good use of a fruit harvest has become a full sustainability story: farm-grown botanicals, natural water, minimal-waste production and, since 2023, the world-first switch to 100% recycled aluminium bottles that has won the brand recognition for innovation, sustainability and eco-packaging alike. To achieve B Corp certification , the small team were assessed across five areas – governance, workers, community, environment and customers and had to provide verified evidence for every claim, from packaging and supply chain to how it treats its people and its patch of Herefordshire. Since its inception, Penrhos has ‘rescued’ over 1 million blueberries from waste and achieved a B Impact assessment score of 86.8 whereas the median score for ordinary businesses completing the assessment is 50.9. Charlie Turner, co-founder of Penrhos Spirits, said: “Achieving BCorp as a small business in the alcohol industry is a big moment for us and we hope it shows the commitment we have as a brand into sustainability and the environment at such an important time." "It confirms our core sustainability credentials and it puts us - a small independent producer - alongside some of the biggest global drinks brands. We know the industry is full of green claims and this certification is an independent guarantee of our genuine commitment to our ongoing sustainability mission.” Chris Turner, CEO of B Lab UK, says: “Welcoming Penrhos Spirits to the B Corp community is hugely exciting. Its commitment to doing business differently will be an inspiration to others and will help spread the notion that success in business is as much about people and planet as it is profit.” To celebrate the certification and saving 1 million blueberries so far, since launch in 2019, Penrhos is launching its first Blueberry Gin along with a new campaign #SaveTheBlueberries which encourages consumers to freeze their squishy blueberries instead of throwing them out, and using them as ice cubes in their Gin & Tonic. New research by Penrhos Spirits1 reveals that UK households throw away more than 12,000 tonnes of fresh blueberries every year - enough to fill the iconic Battersea Power Station turbine hall from floor to ceiling. The limited edition Blueberry Gin will be available at the beginning of September and can be pre-ordered now on the website.

A charitable team of Windermere dragon boat racers has travelled to France to take part in an international festival, pitting their skills against paddlers from as far afield as Canada, Australia and New Zealand. Paddlers for Life Windermere, a charity dragon boat team of cancer survivors and their supporters, have sent a crew to the International Breast Cancer Paddlers Commission (IBCPC) dragon boat festival on Lac du Bourget, France’s largest natural glacial lake. The festival is part of the organisation’s drive to encourage the formation of dragon boat teams for breast cancer survivors, as well as increasing participation in recreational dragon boat paddling for healthier lifestyles. 170 international teams from 25 countries are competing in the event – with around 4,500 paddlers taking part. The team will paddle their dragon boat in a series of 500m and 200m races against other contenders such as the Dragon Lady crew from Florence, the Aurora boat from Spain and Dragons Abreast from Australia. Each event will consist of two heats or racing rounds, with the fastest crews qualifying for grand finals. The Paddlers for Life dragon boat team has been preparing for the regatta at their base at the Watersports Centre at Low Wood Bay Resort & Spa. English Lakes Hotels has been supporting the charitable organisation since its inception in 2007. The idea was to bring patients and supporters together to build back strength and fitness and reduce the side effects of cancer treatment, notably lymphoedema. Dragon boat paddling is highly beneficial to the mental wellbeing of cancer patients and survivors too. One of the founding members of Paddlers for Life, Sandra Barlow, who is still paddling with the squad at the age of 83, explains: “International events such as this are an opportunity to raise awareness about breast cancer and the potential to continue to live a full and active life after diagnosis and treatment." “Low Wood Bay has played a big part in helping us in all sorts of ways. Without their support, we wouldn’t have been able to establish a base and grow to the point now where we have the capacity and equipment to take part in big events like the dragon boat festival in France. We’re also very fortunate to have a home base where we can paddle in such a spectacular setting on Windermere." “There’s great camaraderie and friendship and dragon boat paddling is a great way to free the mind and give us all a better sense of wellbeing. When the squad competes in France this week, we’ll give it our best but we’re not overly competitive. It’s the taking part that counts.” For further information about Paddlers for Life, visit here.

Independent family brewer Shepherd Neame is joining forces with one of Kent’s most iconic entertainment venues, becoming official drinks partner of the historic Margate Winter Gardens ahead of its reopening next year. The seaside landmark is being extensively refurbished by fellow independent family business Westwood One Theatre Group, with Shepherd Neame set to supply its award-winning ales and lagers when the Winter Gardens reopens in 2027. To celebrate the latest phase of the redevelopment, the Winter Gardens is hosting a Summer Weekender at The Green, off Fort Promenade, this weekend (Saturday, August 22 and Sunday, August 23). Saturday’s ‘all-day party’ will include DJs, saxophonists, food stalls and an Aperol Spritz pop-up bar, while Sunday will offer a programme of family entertainment including choirs, children’s entertainment, yoga classes, inflatables, balloon modelling and a toy and book area. Shepherd Neame will be at the event on Sunday offering free merchandise and samples of the newest addition to its Whitstable Bay collection, Whitstable Bay 0.5% Pale Ale. The Summer Weekender event will also give local residents the opportunity to meet the team behind the new Winter Gardens and find out more about the venue ahead of its official reopening. The concert hall originally opened in 1911 and has welcomed some of the biggest names in music, including The Beatles and Blur. It closed in 2022 following the Covid-19 pandemic before being acquired by Westwood One Theatre Group in November 2025. The theatre group, which also owns The Granville Theatre in Ramsgate, has embarked on an extensive programme of works to restore the landmark venue and create a new destination for live entertainment. The renovation includes a reconfiguration of bars and amenities, an exterior extension, blackout glass frontage, and rooftop bars. The main hall’s capacity is increasing from 2,100 to 3,000, while a new 1,000-capacity performance space will provide a dedicated home for smaller shows and emerging artists. The venue is scheduled to officially reopen in March 2027, when visitors will be able to enjoy Shepherd Neame’s award-winning ales and lagers alongside a programme of live music and entertainment. Shepherd Neame Head of Brands Rose Davis said: “We’re thrilled to partner with the iconic Margate Winter Gardens as official drinks supplier ahead of its reopening next year." “The Winter Gardens has a long history of hosting world-famous artists, and we are proud to be part of this exciting new chapter for such an important Kent landmark.” Westwood One Theatre Group Managing Director Zahra Tarjomani added: “We have spent a lot of time getting to know the team behind Shepherd Neame and share their family-focused ethos and love for Kentish produce. We are very excited for this partnership and look forward to the magic it will bring.” Find out more visit here.

One of Scotland's leading family-run hotel and leisure groups is celebrating three decades of award-winning success on the Ayrshire coast this month. The Irvine-based Simpson family is the driving force behind SimpsInns, which now owns and operates a collection of top hotels, restaurants, bars, spa, golf, and leisure activities, including The Waterside Hotel & Spa in West Kilbride, The Gailes Hotel & Spa in Irvine, and The Loans Inn at Troon. Established in June 1996 by Malcolm and Karen Simpson, The Loans Inn (formerly The Bruce Inn) was the first hotel in the SimpsInns portfolio. The Gailes in Irvine opened in 2002, followed by the group’s third hotel, The Waterside, in 2011. Golf and gym facilities were added to the collection in 2014. SimpsInns' debut spa opened at The Gailes in 2021, followed by The Waterside five years later in 2026. The family-owned firm has gone from strength to strength over the thirty years, thanks to an ongoing programme of investment and a dedicated team of over 300 hospitality professionals. Today, the next generation of the Simpson family are supporting their parents, Malcolm and Karen, with the next chapter of the SimpsInns success story. Jack Simpson (32) was just two years old and Lee Simpson (30) wasn’t born when the company was founded in the mid 1990s, but they’re now part of the senior management team, leading some of the most ambitious investment projects in the company’s history. As part of its 30th anniversary year, SimpsInns has just launched Scotland’s ultimate new spa break destination, just 40 minutes south of Glasgow. Boasting commanding sea views over the Firth of Clyde towards the Isle of Arran, The Waterside Hotel at West Kilbride now offers a stunning new sea-view spa and restaurant following a major £3 million development. The opening of Si! Spa at The Waterside is part of SimpsInns’ wider ambition to enhance its reputation for offering the best spa and leisure experiences across the Ayrshire coast region. Looking back on the last 30 years, Malcolm Simpson from SimpsInns, said: “While much has changed over the last thirty years, our commitment to great food, warm hospitality and exceptional service remains at the heart of everything we do." “Looking back at where we started and seeing where we are today, we’re incredibly proud of how far we’ve come. Our success is very much owed to our dedicated team and a constant focus on ongoing investment across each of our venues." “We’d like to thank all our entire team, guests, suppliers and friends who have continued to support SimpsInns over the last three decades." “We look forward to what the next thirty years has to bring as we celebrate our special anniversary year and the launch of Scotland’s ultimate new spa break destination at The Waterside in 2026.” Malcolm’s son, Jack Simpson, is part of the senior management team at SimpsInns. He added: “As we look to the future, our focus remains on continued development across the business. We want to maximise the opportunities ahead of us, while never losing sight of what got us here in the first place - delivering great experiences and maintaining the high standards our guests expect." “Equally important is continuing to invest in our people, developing our team and creating opportunities for them to grow alongside the business. After 30 years, we're as ambitious as ever and excited about what the next chapter holds for SimpsInns.” Many famous faces have walked through the doors of SimpsInns’ venues over the last three decades, including actors James Nisbet and Robson Green; musician, Pete Docherty; TV personalities, Mark Wright and Jean Johanson; news presenter, Naga Munchetty; footballer, Ally McCoist; and Swedish professional golfer, Alexander Norén. A motion was recently passed in the Scottish Parliament to recognise Simpsinns for the Best Spa Hotel in Scotland accolade at the Scottish Hotel Awards 2026 and in recognition of SimpsInns’ achievements as one of Scotland’s leading hospitality businesses over the last 30 years. For more information on the SimpsInns Group, visit here. Photo: Credit SimpsInns

We spend a lot of time worrying about whether the next generation is ready to take over a family business. I sometimes wonder whether we spend enough time thinking about whether the senior generation is ready to stop running it. If someone has spent 30 or 40 years running a business, perhaps having started it themselves, stepping down is a pretty significant change. The business isn’t just where they work. It may be a large part of who they are. Their relationships are there. People have been asking their opinion for years and they have probably spent decades feeling personally responsible for what happens. I have never particularly liked the expression that someone “needs to let go.” It makes something quite complicated sound remarkably simple. Perhaps a better question is: what are they going to do instead? We put a lot of effort into the role of the person taking over, but sometimes remarkably little into the role of the person stepping down. They stop being CEO or MD, perhaps remain on the Board and everyone carries on. The trouble is, quite often they carry on too. And why wouldn’t they? If we haven’t worked out what somebody is moving towards, we shouldn’t be particularly surprised when they keep returning to what they have spent most of their working life doing. There may still be a huge amount they can contribute. If they founded the business, perhaps they become Founder or President. Perhaps they retain a handful of important relationships, represent the business externally or get involved in the things they genuinely enjoy and are good at. The title isn’t particularly important. Finding something meaningful to move towards is. But there is also the question of the Board. You can appoint the next generation as CEO, but if the person who ran the business for 30 years is still sitting beside them at every Board meeting, have you really given them the space to become CEO? Maybe. Every family is different. But I don’t think we should assume so. Family relationships don’t suddenly change because someone’s job title has changed. If you have spent your life deferring to Mum or Dad, there is a fair chance you will continue doing it. Partly through respect, but also simply through habit. The same applies to people elsewhere in the business. Someone who has spent 20 years looking to one person when an important decision needs making isn’t necessarily going to stop because the organisation chart has changed. None of this means the senior generation is deliberately interfering. They may genuinely believe they have stepped back. But if people continue asking their opinion, it is quite difficult not to give it. And if you have spent decades solving problems, it is probably quite difficult to watch somebody solve one differently. This is where I think a good independent Chair can play a really important role. The Chair knows the family and the business but isn’t actually part of the family. They can often see what is happening rather more clearly and have conversations which may be much harder between a parent and their children. One of the most useful questions they can ask the person who is stepping down might be a very simple one. What are you actually going to do when you’re not running this place? Perhaps they love dealing with customers but have had enough of managing people. Perhaps there are parts of the business they still really enjoy. Perhaps they want to spend more time away. Perhaps they would enjoy mentoring some of the younger people coming through. Or perhaps, underneath everything else, they are worried that the business won’t be OK without them. If you have spent most of your working life feeling responsible for a business, it must be difficult simply to decide that somebody else is responsible now. And this is where I think the Chair can provide something beyond good governance. If the senior generation trusts the Chair, they know there is someone experienced and independent around the Board table. Someone who understands the family as well as the business, who will support and challenge the new CEO, ask the difficult questions and say something if they think things aren’t right. That must make stepping away a little easier. The Chair can also help establish where the boundaries should sit. In some cases that may mean the senior generation leaving the Board altogether while continuing to have a meaningful role elsewhere in the business. That shouldn’t be seen as pushing somebody out. It may actually be one of the most supportive things they can do for whoever is taking over. Successful succession isn’t about getting the senior generation out of the way. Nor is it about repeatedly telling somebody who has spent their life building a business that they need to “let go”. It is about recognising what they have done, finding a worthwhile role for them if that is what they want, while giving the person taking over enough space to make the role their own. Perhaps that is one of the less obvious jobs of a good Chair. Not persuading the senior generation to let go, but helping create the conditions in which they feel able to.

For many family business owners, succession planning is something that sits firmly on the "one day" list. The priority is usually on growing the business, supporting employees, serving customers, and creating opportunities for the next generation. Yet whether your intention is to pass the business to family members, sell to a management team, or eventually explore an external sale, the decisions you make today can have a significant impact on the future value and longevity of your business. The reality is that succession planning is not just about what happens when you retire. It is about ensuring the business can thrive without you, preserving the wealth you have created, and giving future generations the best possible platform for success. The strongest family businesses don't wait until a transition is imminent. They build succession planning into their long-term strategy, creating a business that grows, creates value, and remains resilient regardless of who is leading it. Start With The Future In Mind Successful succession planning begins by defining what success looks like. For some family business owners, the goal is to pass ownership and management to the next generation. For others, family ownership may continue while professional managers run the business. Some families decide that an eventual sale provides the best outcome for shareholders and future generations. Whatever the destination, understanding your long-term objectives helps shape the decisions you make today. Questions worth considering include: Who will own the business in 10 to 15 years? Who will lead it? Does the next generation want to be involved? How will shareholders be treated fairly? What level of income will retiring owners need? How will family and business interests be balanced? Too often, these conversations are delayed until circumstances force action. Starting early gives families more options and allows for a smoother transition. Build A Business That Is Bigger Than The Founder One of the biggest challenges facing family businesses is founder dependency. Many successful businesses have been built around the relationships, knowledge, and decision-making of one individual. While this often drives growth, it can create significant risks when it comes to succession. The more dependent the business is on one person, the more vulnerable it becomes. Future leaders need opportunities to develop their skills and confidence long before a formal transition occurs. This means creating clear structures, delegating responsibilities, and building accountability across the organisation. Key areas to focus on include: Developing a strong leadership team Clarifying roles and responsibilities Establishing governance structures Documenting key processes Creating clear decision-making frameworks A business that can operate effectively without the constant involvement of the founder is not only more valuable, it is also more sustainable. Prepare The Next Generation For Leadership Succession planning is often viewed as a technical or legal exercise, but in reality, its success depends on people. If family members are expected to take on future leadership roles, they should be given opportunities to gain experience, develop commercially, and establish credibility within the business. That may involve: Structured development plans Mentoring from existing leaders Exposure to different departments External work experience Professional qualifications and training Importantly, succession should not be based solely on family relationships. Future leaders need the skills, capability, and commitment required to lead the business. Establishing objective expectations helps avoid conflict and ensures the business remains strong for future generations. You Can Build Value In Your Business Alongside Succession Planning Many of the actions that support succession planning are also the same actions that increase business value. Whether the business remains in family ownership or is eventually sold, value creation should remain a core objective. Owners should focus on: Strengthening recurring revenue Businesses with reliable, predictable income streams are generally more resilient and easier to manage through periods of transition. Improving profitability Strong margins provide flexibility for investment, succession planning, and future growth. Diversifying customer relationships Reducing reliance on a small number of key customers strengthens long-term stability. Investing in systems and processes Documented and repeatable processes reduce operational risk and make leadership transitions smoother. Maintaining financial discipline Robust management reporting and strong cash flow management provide stakeholders with confidence in the future of the business. By focusing on these areas, family business owners can improve both succession prospects and long-term business performance. Don't Overlook Tax And Estate Planning For many family business owners, the business is their largest asset. As a result, succession planning should be closely aligned with personal estate planning, family wealth planning, and tax planning considerations. Questions to consider include: Should ownership begin transferring before retirement? Are existing share structures still appropriate? How will wealth be distributed fairly between family members? What are the potential Inheritance Tax implications? Would trusts or family investment structures be beneficial? The recent changes to Inheritance Tax and pensions have highlighted the importance of proactive planning. Family business owners should review their wider affairs regularly to ensure business, personal, and family objectives remain aligned. Early planning often provides significantly more flexibility than decisions made under time pressure. Create A Formal Succession Plan A succession plan should not exist only in the owner's head. The most successful transitions are supported by a documented plan covering: Future ownership arrangements Leadership succession Governance structures Family involvement policies Contingency planning Retirement objectives Communication plans Regular reviews are equally important. Families, businesses, and priorities change, and a succession plan should evolve alongside them. Protecting Your Legacy Successful family businesses rarely happen by accident. They are built through years of hard work, entrepreneurial spirit, and a commitment to creating opportunities for future generations. Succession planning helps ensure that effort is protected. By developing future leaders, building business value, strengthening governance, and aligning business and personal planning, owners can create a business that continues to thrive long after they step back. The earlier these conversations begin, the more options become available and the smoother the transition is likely to be. At RPGCC, we work with family business owners to develop practical succession plans that support growth, preserve value, and protect family wealth. Whether you are considering family succession, management buyout opportunities, employee ownership, or an eventual sale, our advisers can help you build a clear roadmap for the future. If you would like to discuss succession planning for your family business, get in touch with our team today. Together, we can help ensure your business is ready for the next generation and whatever comes after that.

Building wealth with a family business is only half the story. It’s also about how to protect it and pass it on. Over the coming years, there will be an unprecedented transfer of wealth to the next generation, with more assets being passed down than at any point in living memory. At the same time, protecting that generational wealth transfer has become more difficult. What Changed In April 2026? Previously, qualifying business assets could be passed on with 100% tax relief from Inheritance Tax (IHT) through Business Property Relief (BPR). From 6 April 2026, the 100% relief rate on qualifying business assets has been capped at £2.5 million. Any value above that threshold now receives 50% relief. The allowance can be transferred between spouses and civil partners, and will rise with inflation from 2031. Here’s an example to illustrate the impact this will have on businesses: Before April 2026, a business owner could have gifted shares in a qualifying limited company worth £5 million to the next generation with no inheritance tax due. Under the new rules, the first £2.5 million qualifies for full relief, but the remaining £2.5 million qualifies for only 50% relief. That leaves £1.25 million chargeable to inheritance tax at 40%, resulting in a tax bill of £500,000. Many businesses will struggle to pay a six- or seven-figure IHT bill because the value is tied up in the business assets or goodwill rather than available in cash. Fortunately, several family wealth transfer strategies still exist to help limit your business’s exposure. Step 1: Understand Your Exposure It’s important to understand your potential exposure before you can implement strategies to mitigate the impact of BPR and IHT on a transfer of generational wealth. Valuing your business is a great place to start. This is not always straightforward, and various factors will impact this, so we recommend this is done by a professional. It will also be useful in identifying surplus and non-trading assets. Excess cash, investment property and other non-trading ("excepted") assets can restrict the relief available, so identifying these early gives you the chance to address them. Once you know your numbers, you can model your likely inheritance tax liability against the £2.5 million allowance. Step 2: Restructure If Necessary You could reduce your exposure and streamline the transfer of generational wealth by adjusting your business's structure. There are several possible approaches, including: Separate ("alphabet") share classes. These allow different family members to hold shares carrying different rights. "Freezer" and growth share arrangements. These can fix the value of your own shares and pass future growth to the next generation. A holding company structure. This separates trading and investment activities and ring-fences valuable assets. Separating control from value. This lets you pass on the economic value of the business while keeping voting control in your hands. The right strategy will be unique to your business, so ensure you address this step with professional advice rather than on your own. Step 3: Plan Ahead And Gift Shares Using The Seven-Year Rule Gifting shares during your lifetime remains one of the most effective ways to reduce a future inheritance tax bill. Outright gifts fall outside your estate entirely after seven years. If you die within a seven-year window, the tax rate decreases on a sliding scale between years three and seven. It’s worth remembering that you do not have to give it all away. You can gift a proportion of your shares while retaining enough to keep control. This lets you transfer assets to the next generation in stages rather than all at once. If you do gift shares, keep clear records of the date and value of every gift. Your executors will need them. Step 4: Think About A Trust A trust can provide a flexible and protective framework for holding ownership across generations. A discretionary trust is the most common form, giving you a say over who benefits and when. It is particularly useful where beneficiaries are young, or where you want to retain influence over the timing of any transfer. There are important mechanics to understand. Transferring assets into a trust above your available nil-rate band (currently £325,000) can trigger an immediate 20% charge on the excess. Trusts also incur additional charges on each 10-year anniversary and when assets are distributed. That said, business assets that qualify for relief can, in some cases, be settled into a trust without an immediate charge, although the new £2.5 million cap affects how this works. What Can You Do Today? Don’t delay initiating these wealth transfer strategies. Below are practical first steps you can put in motion today: Arrange a business valuation so you have a clear picture to plan from. Model your inheritance tax exposure against the £2.5 million allowance. Check your ownership structure is fit to plan around. Decide how any tax bill would be funded, so your family is never forced into a rushed sale. Look at potential life insurance cover that could help minimise the impact of any identified IHT exposure Review and update your will to ensure it reflects both your wishes and the current rules. Start talking to your family so everyone understands the plan. Seek professional advice to bring it all together. Find Advice You Can Rely On The family wealth transfer strategies in this article interact with one another and with your own circumstances in ways that reward expert guidance. Getting the details correct, and in the right order, is where a trusted adviser makes the difference.