Egg producer Farmlay has hatched a plan to almost double productivity for 2025 with a £2.4m investment in a state-of-the-art grader. AI-based Computer Vision technology is at the heart of the new grading equipment that will be rolled out at Farmlay, Scotland’s second biggest egg producer, in January next year. Iain Chapman, Farmlay Managing Director, confirmed the new system is being shipped over from the Sanovo Technology Group factory in Holland. “Our current egg grader is giving us 500 cases an hour and this second one will give us 400, so almost double our output,” he says. “We were at a crossover as to whether - with demand for eggs at such a high - to simply run our existing grader longer hours. However, doing that wouldn’t have been a long-term solution and could have been risky with no back up machine if there was a problem." “We have been keenly watching the research and development going on and the Sanovo machine we are getting has been proven to be amazingly efficient, using AI to analyse high-resolution images of the eggs.” Farmlay is a Scottish farming success story, with Iain’s grandparents starting to rear poultry back in 1946, going on to market their own eggs in the 1970s. The business, which supplies Aldi, Lidl, Morrisons and Spar with its own - and a growing stable of contract producers’ eggs - is still based at the family’s Cockmuir Farm, near Strichen, Aberdeenshire, which has expanded from the original 130 to 2,500 acres. The investment figure of around £2.4m includes building alterations and bucks the usual trend of modern technology being detrimental to employment levels as once at full output this second grader will generate around ten new jobs, dealing with the increased number of eggs. “Getting the new grader installed in January will be a great way to start the New Year,” said Mr Chapman. “There is a real buzz about eating eggs, with lots of posts on social media platforms such as Instagram with celebrities talking about how they are a healthy way of getting protein into the diet. There are definitely more young people eating eggs now than there have been for a very long time.” Computer vision grading systems utilise advanced algorithms and deep learning techniques to analyse high-resolution images of eggs, enabling them to differentiate between normal eggs and those with cracks. They can also detect variations in colour, texture and shape - all the time absorbing new data to become ever-more proficient. Latest egg industry data from global shopper and consumer behaviour experts Kantar World panel shows that between 2004 and 2023, retail egg sales increased by more than 20 per cent. While all population sectors are eating more eggs, growth is acknowledged as particularly strong among the 18 to 44 age group. Overall, consumption has risen from 1.6 eggs per person per week to 2.1 eggs per person per week, equating to 110 eggs per person - a rise of almost 30 eggs a year. Free range sales have risen sharply and now represent almost 75% of retail egg sales - more than double their level in 2004 (32%). Shortages of eggs seen at supermarkets, during both covid and because of bird flu, prompted many retailers to offer five-year rolling contracts to producers. “In many ways those empty supermarket shelves were a blessing,” says Mr Chapman. “No retailer wants to see a repeat of the egg shortages and that - together with the increased consumption figures - has given them the confidence to show more long-term support. This really is a golden age for egg production." “Numbers enquiring about coming on board as contract producers are at a high, with eggs being seen by many as a new venture or wonderful way of enabling a younger generation to come home to a family farm. Amazing when you think it’s a sector that people might not have even considered just a few years ago.”

A Ferndown business has dedicated its window to the late leader of the Real Dad’s Army re-enactment group, along with all those who have fallen in conflicts and wars. AE Jolliffe & Son funeral directors arranged the funeral of well-known townsman Dale Johnson who died recently ago aged 85. His widow Bridgette has loaned the branch of Douch Family Funeral Directors her husband’s uniform and some of his memorabilia for the head-turning display to mark Remembrance Day. Dale, a history enthusiast, was known for his spot-on portrayal of Private James Frazer from Dad’s Army. With a snappy salute and a perfect Scots’ accent, he’d often warn with a smile, “We’re doomed, doomed, all doomed I tell you!” His dedication to keeping the spirit of the Home Guard alive was extraordinary and he travelled the country with his group, entertaining and educating others about the real history of the Second World War. Debbie Brown, who manages the branch, said: “Dale was a part of Ferndown and his collection of Home Guard memorabilia was second to none. Among his prized possessions was a 1933 Austin 7 van, complete with Home Guard livery, still bearing its original licence plate and the nickname ‘AUTOGOPHASTA’." “This iconic vehicle, along with his incredible collection of equipment, showcased his passion for preserving history." “He was always keen to inform people about the war and educate young people and we felt a window in his memory would be entirely fitting. We were privileged to arrange his funeral, knowing what an important local person he was." "We are extremely grateful to Bridgette for lending us some of Dale’s memorabilia and his uniform. People have been stopping to look in the window and it’s wonderful that Dale is still raising awareness.” Photo: Debbie Brown ad Adrian Read from Jolliffe & Son in Ferndown in front of the window

With over 40 years of experience, Superior Catering, an independent family-owned business based in Widnes, has established itself as one of the North West’s leading corporate catering providers. Known for its high-quality food and exceptional service, the company has partnered closely with Sabert Corporation Europe to enhance its food presentation through innovative packaging solutions. We spoke with Dan Whitley, Operations Manager at Superior Catering, who explains that "Our food and its presentation – which very much includes the packaging – consistently receives great feedback from our customers.” “Superior Catering is one of the North West’s largest and most well-known sandwich distributors, delivering thousands of high-quality sandwiches, pies and pastries to offices every day,” says Dan Whitley. “A major element of successfully delivering on-the-go and takeaway food is choosing the most appropriate packaging." “We chose to work with Sabert, because they are a reliable supplier, and so easy to work with. Plus, they always seem to be one step ahead of other suppliers and they’re steadily introducing new packaging solutions which deliver great food presentation." “We use a tremendous amount of sandwich platters and plates, plus bowls for salads and pastas. The Superior brand is very important to us, so the fact that the majority of Sabert’s packaging can be printed is a real bonus. We’re even now looking at getting our recyclable paper cutlery branded, as we take every opportunity to reinforce our image. First impressions count and this is a very competitive market, so a high level of consistent branding gives us a definite edge." “Packaging has been through a difficult time, with single-use plastic bans and taxes, and our customers are smart and are well informed about sustainability and ethical issues. Working with Sabert has ensured we have always stayed ahead of changing legislation and been able to offer our customers a consistently high-quality range of sustainable products." “Operating in the most sustainable ways we can is a priority for Superior Catering and alongside choosing packaging which has material provenance – such as being FSC® approved – and ensuring that it can be either recycled or commercially composted, we have begun to focus on reducing food waste." “Our food and its presentation – which very much includes the packaging – consistently receives great feedback from our customers, so we are also beginning to think about ways to involve them more in our sustainability story. So that’s another benefit of being able to print messages as well as branding on our packaging." “Choosing the correct packaging is an operational necessity for all food service businesses. Food preparation and our whole back-of-house operation is where so much time can be saved. Sabert supplies practical, functional, stackable, nestable, easy-to-use packaging, which makes food look great and gives the consumer a positive experience, which is essential. Alongside the branding benefits I mentioned earlier that kind of sums up what packaging from Sabert delivers for us.”

A Motherwell pet store has seen a 150% increase in turnover after the business owners’ accessed support from Business Gateway. Ruben’s Pet Store, run by sisters Julie Clifford and Frances Pinkowski, has achieved significant growth after receiving £17,500 from the North Lanarkshire Business Growth Fund, part of the UK Shared Prosperity Fund, which enabled them to move into a bigger premises and open their own dog day care. Ruben’s Pet Store specialises in natural raw dog food, natural treats, health products and accessories. Julie and Frances were inspired to start their own business in 2017 after seeing the life-changing benefits of a raw diet on Julie’s dog, Ruben. Starting out in Frances’ garage, the sisters, supported by husbands Sean and Steven, initially ran the business in evenings and weekends after work. Buoyed by strong local support, Julie and Frances took the plunge to run Ruben’s Pet Store full time, expanding their team and moving into new premises as they refurbished a disused barn into a top-class pet store and dog day-care facility. Like many other small businesses, the Ruben’s Pet Store team has been supported on its journey by its local Business Gateway team, with advisers, Jim Fagan, and Gemma Barrett, proving to be an integral part in supporting the business’ recent endeavours. Jim and Gemma have provided one-to-one support, including advice across financial and business planning, HR and funding support, which has enabled Ruben’s Pet Store’s growth and expansion. The team also benefitted from marketing consultancy support, giving them the confidence to upgrade the business’ digital footprint and increase engagement across its community through improving the website, implementing a dedicated social media strategy and customer targeting through targeted posts and advertising. Earlier this year, the team was named Independent Pet Shop of the Year 2024 for North Lanarkshire, Falkirk, Fife and Edinburgh at the Local Pet Awards Scotland. Riding on the wave of this success, the team plan further expansion to the business by the end of the year and the current forecast is for it to double its turnover again over the next two years. Julie Clifford, Co-Founder of Ruben’s Pet Store, said: “Business Gateway’s advice and guidance has been instrumental in helping us navigate our expansion and moving to the new premises." “Jim (Fagan) and Gemma (Barrett) have been brilliant in offering their expertise, support and connections which have been crucial in gaining grant funding and taking our business to the next stage.” Gemma Barrett, Business Gateway adviser said: “Julie, Frances and the rest of the team at Ruben’s Pet Store have had a fantastic year, it’s brilliant to see all their hard work and dedication paying off." “They have been a joy to work with and really taken on board our advice and guidance. We’re delighted to have assisted them in expanding their business and look forward to supporting the next exciting steps in their journey.”

The latest stage of the partnership between HMG Paints and FC United has been completed with the successful refurbishment of the St. Mary’s Road End (SMRE) Bar floor at Broadhurst Park. The bar, known for its unique display of club memorabilia and its vibrant community atmosphere, has been refreshed by staff and volunteers with a new grey finish using HMG’s Polyurethane Floor Paint. The project is the latest phase of the club's commitment to creating a welcoming and versatile space for fans, players, students and community groups alike. The SMRE Bar painted in FC United’s traditional colours of red, black, and white, not only honours the club’s history but also provides a comfortable environment for fans to gather before and after games to enjoy a pint and watch bands, poets and comedians together. Beyond match days, the SMRE space serves a dual purpose. The far end can be isolated to create a classroom space for the FC United Academy, where young players continue their education before hitting the club’s 3G pitches. Additionally, the versatile room is regularly used by community groups on both evenings, weekends and during school holidays, providing a safe and functional space for various activities. Paul Haworth, FC United’s Commercial Manager, expressed his gratitude, stating “Thanks to the help of HMG Paints the floor looks great. The fresh flooring and updated paintwork across the bar adds a professional touch to the space, making it more inviting for fans, staff, students and community groups." "We appreciate the support from HMG Paints and the hard work of our volunteers.” HMG’s Polyurethane Floor Paint, which was used in the project is a single-pack, versatile, and durable floor coating. Suitable for internal and external use, the floor paint provides good resistance to oils, grease, and thankfully beer spilt by celebrating supporters, and is designed for areas subject to light to medium foot traffic. The paint is easy to apply, touch-dry within 2 hours, and can be recoated after 16 hours. For added safety, the paint can also be formulated to be low-slip, with the addition of HMG’s Low Slip Additive. James Burton of HMG Paints added “It’s great to see the bar looking so good, and it’s a great showcase for Manchester and the community nature of the club. Supporters can enjoy the new look bar knowing the paint is made locally by fellow fans and enjoy a pint of Joseph Holt beer which is also brewed in Manchester." "The integration between local people, businesses and the club are what helps make FC United such a special club and we’re proud to partner with them.” Polyurethane Floor Paint is just one of the products featured in HMG’s new Sport Venues Coating Guide, which features a whole portfolio of products and useful information. To see a full list of HMG Paints products, all of which are proudly manufactured in Manchester under an ISO 9001 management system and bear the Made in Britain accreditation visit www.hmgpaint.com .

Nottingham garden room firm Cabin Master has reported huge interest in its sauna cabin range in response to a growing UK home leisure and self-care trend. The new range of cabins is an extension of the brand’s long-established luxury garden room business, which manufactures its bespoke products in Ilkeston and installs them across the UK. In recent years, health-conscious Brits have increasingly placed their focus on physical and mental wellbeing. From gyms to cold water plunge pools, UK households have honed-in on the ‘therapy at home’ trend. Now, Cabin Master’s home saunas are fast becoming the “hot” product since the firm launched them earlier this year. Kay Pollard, digital marketing manager for Cabin Master, said: “Our sauna cabins are completing the work-life balance equation, especially for home-workers. Alongside home gyms, they are fast becoming a ‘must have’ addition for the health conscious.” Saunas have been credited with a range of health benefits for the body and soul. In a recent article by Women’s Health UK 11 benefits were listed as being attributed to regular use of a sauna. These included improvements to circulation, blood pressure, stress levels, muscle stiffness and respiratory issues. Additional benefits were related to mood, sleep and cardiovascular health. Cabin Master, one of the UK’s leading manufacturers and installers of high-quality, bespoke garden rooms, branched out into designing sauna cabins after the Covid pandemic changed working practices and placed the emphasis on health and personal well-being. Kay said: “Covid changed many aspects of UK life but one of the positives that came out of the pandemic was the focus on self-care. This has rolled over into how households view their homes and gardens.” Launched for the first time this year, Kay said that sales of its sauna cabins had steadily increased as more people became aware of how easy it was to have one installed in their garden. Cabin Master, which has a show sites in Studley, Warwickshire, and Toton Lane, Stapleford, just off Bardills island, works directly with its customers to design and install bespoke sauna cabins. A typical sauna will only require an overall space of 3.7m x 3.9m so will fit neatly into most gardens. The timber building specialist said that a sauna of this size would comfortably accommodate five people on its integrated two-tier bench seating. Made in the UK from solid slow-grown Redwood, and using the very latest Thermwood technology, they are fitted with a Finnish-made 6kw electric heater. Kay said: “Customers are ditching the gloom of long winter nights ahead in exchange for Scandi-inspired sauna cabins that promote health and wellbeing regardless of the weather." “Not only are they warm and welcoming, ready to rid you of the day’s stresses, with regular use, they are proven to improve heart and mental health, relieve chronic pain and, of course, aid relaxation and lower stress.” The family run firm offers a free site survey, design drawings to customers’ own specifications, and finance options if required. Each building comes with a 10-year guarantee as standard on building materials, workmanship and labour. Cabin Master provides a range of insulated garden rooms. Its range includes annexes, garden offices, bars, gyms, photographic studios, barbecue cabins, additional school rooms and Arctic-style lodges. To find out more about the range of buildings on offer, visit the Cabin Master show sites in Nottingham and Studley or their website here

Bayes Business School family business expert says Budget risks undermining “legacy, growth and stability” of companies Reacting to changes in inheritance tax treatment announced in yesterday’s Autumn Budget, Professor Ajay Bhalla, Professor of Family Business and Innovation at Bayes Business School says the move could jeopardise the long-term health of existing family-run organisations, as well as stifling a major contributor to the UK economy and growth. Professor Bhalla said: “The budget’s introduction of a 20% Inheritance Tax (IHT) on assets over a £1 million threshold for family business successors could have serious consequences." “Embedded deeply in the UK society, family businesses are the backbone of the UK economy, accounting for more than 85% of all UK firms. Together, they contribute more than 40% of the nation’s Gross Domestic Product, create over half of all private sector jobs, and channel more than £225 billion into the UK’s public finances each year." “It is well-known that these businesses are essential to the UK’s economic future. Yet, instead of encouraging their continued success, the Chancellor’s recent Budget risks destabilising them and, in the process, making an irreparable damage to the very fabric of UK society." “There is no doubt among family business owners that this will make it much harder for the next generation to take up the mantle of keeping the company running, will certainly discourage reinvestment and threaten the long-term health of these vital firms. “The new cap on Business Property Relief (BPR) and Agricultural Property Relief (APR) at £1 million further dampens the ambitions of family business owners, by making succession planning increasingly difficult." “For first time in a generation, family business owners now face the prospect that their legacy, growth, and stability may be at risk due to policies that hinder succession and stifle the UK’s longstanding engine of enterprise.”

Emily Deane TEP, Technical Counsel and Head of Government Affairs at STEP, the global membership body for inheritance advisors responds to the Autumn 2024 Budget stating that "It is disappointing that the government has not seized the opportunity to increase the inheritance tax nil-rate-band. Subjecting pension pots to a 40% tax will also come as a shock to many and unfairly penalises pension savers." Pensions & Inheritance Tax (IHT) The government has announced a shocking change that estates with lump sum pension payments will become subject to 40% tax. This could cause huge difficulty for families who rely on the payments after the death of a loved one to mitigate debts like mortgages, medical bills or funeral expenses. This is a substantial reform that unfairly penalises people who have spent years accumulating their pension pot and had planned for a particular level of income. We strongly recommend that individuals, families and their advisors re-visit their financial arrangements in light of the change. No Increase To The IHT Nil Rate Band It is disappointing that the government has not seized the opportunity to increase the nil-rate band, which has been frozen at £325,000 since 2009 and is completely unaligned with inflation. As property and assets prices increase, the threshold continues to stay the same and is looking to stay that way until at least 2030. Agricultural & Business Property Relief & IHT We are concerned that the government has announced it will reform agricultural property relief and business property relief from 6 April 2026. Relief of up to 100% has always been available on qualifying business and agricultural assets in addition to existing nil-rate bands and exemptions. However, from 6 April 2025, the 100% rate of relief will only apply for the first £1 million of combined agricultural and business property and it will be 50% thereafter. This will come as a huge shock to agricultural businesses that have limited cash flow and may result in financial strain on family businesses and farms being forced to sell. In reality, most farmhouses with barns and acres of land to farm on will be valued at £1 million plus and it is unrealistic to think that the average farmer will not be financially impacted by this reform. STEP is calling for the government to increase this ill-considered threshold if it is going to proceed with the changes. Non-Dom Reforms: STEP’s Initial Response After much speculation, the non-dom reforms will be implemented from 6 April 2025 broadly as expected but with several important changes from the proposals first announced by the Conservatives. Overall, the regime will be slightly more favourable than had been feared by existing non-doms. Of particular interest is the reduction in the inheritance tax ‘tail’. This is the idea that those who have lived in the UK for ten or more tax years become exposed to UK inheritance tax not only while they live here but also for some time after they leave. It is a particularly important consideration for the internationally mobile. The tail was originally proposed to be ten years, but now it will depend on how long a person has been UK resident and can be as little as three years. Some existing non-UK-resident trusts will also continue to benefit from a limited version of their existing inheritance tax protections. As expected, non-UK trusts will lose protected status from 6 April 2025. Subject to some important exceptions, if such a trust has a UK resident settlor then income and gains in the structure may be taxable on the settlor from that date. As much as this will be disappointing for some, several sensible changes are at least being made as to how the attribution rules work here. For example, settlors are being given an extended right to recover from the trust any income tax that they pay on trust income. Some of the definitions in the legislation are being clarified to reduce confusion and settlors will be able to set personal losses off against attributed gains. Capital Gains Tax (CGT) The Chancellor announced increases to CGT in the Budget. STEP has advocated for stability in CGT rates as recently as May this year (see our consultation response). We have emphasised the importance of maintaining stable CGT rates to support effective estate planning and ensure compliance. We believe that four years is too short to be competitive with other European jurisdictions. A longer period of ten years’ residence, with a fixed annual charge in respect of foreign income and gains (regardless of remittance), seems to us to offer a more realistic incentive and a more competitive plan. Consultation Paper On Tackling Offshore Tax Non-Compliance The government has announced a new consultation on tax non-compliance. We have previously expressed concerns about proposals related to tackling offshore tax non-compliance, particularly in response to government consultations on raising tax standards and addressing offshore tax issues. We’ve generally highlighted the importance of ensuring that any new regulations do not impose unnecessary burdens on tax advisors who are already compliant with professional standards. About STEP, the professional body for inheritance advisors: STEP is the global professional association for practitioners who specialise in family inheritance and succession planning. We have more than 21,000 members in 96 countries. STEP works to improve public understanding of the issues families face in this area and promotes education and high professional standards among its members. STEP members help families plan for their futures, from drafting wills to issues surrounding international families, protecting the vulnerable, family businesses and philanthropic giving. Find out more at www.step.org

Business will bear the brunt of Labour’s record tax raising UK budget and need more government support, Scotland’s business leaders have warned. The Scottish Chambers of Commerce has urged both the UK and Scottish governments to find additional solutions to ease significant cost pressures. SCC Chief Executive Dr Liz Cameron CBE said: “While we accept the principle behind these budget changes and acknowledge the tough fiscal challenges the government faced, we were looking for a fairer and more balanced approach." “The increase in employer NICs and the reduction in the payment threshold will push costs even higher for our 12,000 member organisations. Combined with the rise in the minimum wage and the new Employment Rights Bill that’s likely to lead to cost cutting, lower pay increases, and fewer jobs at a time when we need more growth and investment.” The SCC called for the additional £3.4 billion of consequential funding for Scotland to be used to provide support for economic growth and the business community. “In particular, we hope the Scottish budget will deliver long overdue reform of business rates and bring relief for the hard-pressed hospitality sector in line with the rest of the UK,” said Dr Cameron. The SCC shared the disappointment that will be being felt by Scotland’s whisky industry at the increase in Alcohol Duty. “It is disappointing that despite the Prime Minister’s commitment to back Scotch producers to the hilt, we have yet another increase in alcohol duty. The last government’s hike cost the Treasury more than £300m in lost revenue while this latest rise takes the minimum UK tax burden on a bottle of whisky to over £12 for the first time – and the highest of any G7 country." “Clearly lessons are not being learned and we would urge the Chancellor to either re-think this decision or provide the whisky industry with additional support to enable future growth and investment,” said Dr Cameron. The SCC welcomed the increase in Employment Allowance from £5,000 to £10,000 saying it will support Scotland’s micro and small businesses with less than ten employees. However, Dr Cameron called for further measures and support. She said: “Rachel Reeves’ budget promised growth and investment and while there are many excellent measures they don’t seem to be bold enough or fast enough to counter this tax raid on businesses." "We need a faster, more proactive approach to support Scotland’s ambition, entrepreneurship, and innovation." “The budget boost for the Cromarty Green Hydrogen and Whitelee Green Hydrogen projects will help Scotland become world-leaders in alternate energies and boost international investment and jobs in a growing sector." “Together with the Argyll & Bute Growth Deal and the extension of the Innovation Accelerator Programme in Glasgow, these are the kinds of initiatives and support we need to see more of." “Glasgow’s achievement as one of the most innovative cities globally, and its status as the second leading emerging tech destination in the UK, underscores the region’s potential. Extending the programme will build on these strengths and create high-value jobs.” The SCC has also welcomed the £750,000 funding boost for the Scotland Office in 2025/26 to champion Brand Scotland. Dr Cameron said: “We urge the UK Government to expand this further and would welcome further engagement with the UK Government on working in partnership with business to promoting Brand Scotland across the globe.” The SCC is the leading voice of business in Scotland and represents firms from start-ups to major employers. Dr Cameron said: “The Chancellor’s move from short to long-term decision making will enable the retention and attraction of investors to Scotland, while schemes like the Enterprise Investment Scheme are the global gold standard and have put the UK at the forefront as an incubator of innovative start-up." “Extending such schemes is vital for the founders and workers generating the growth that is important to the government’s goal of restoring public finances.”

Family businesses are the engine room of the national economy and since 2012 Family Business United has been celebrating their successful contribution at the National Family Business of the Year Awards. The 2025 awards are now open and family firms can enter themselves or be nominated for one of the prestigious awards using the simple entry form here before the deadline for entries on November 30. As Paul Andrews, Founder and CEO of Family Business United explains, "Each year we present some incredible family businesses with regional, sector and national awards and it really is a celebration of the very best of British family firms." "Over the years we have presented awards to family firms from all corners of the UK, of all sizes, generations and sectors with the connection between all of them being family, passion, pride and commitment as a family business." "We are really excited to host these awards that have great support, incredible judges and sponsors and really do bring the family business community together as one to celebrate the very best family firms in the country." 2024 saw the crowning of Bagnalls as the Supreme Champion Family Business of the Year but who will be taking home the title in June 2025? Entries for the National Family Business of the Year Awards 2025 close on November 30, 2024.

The key difference between the majority of family-owned businesses and publicly limited companies lies in the structure of ownership. Where publicly listed companies are concerned, the ultimate owners are the investors, with the day to day running and management of the company placed in the hands of the management and the board. Shareholders have the chance to influence matters to a degree at annual shareholders meetings, but the ultimate form of control lies in the fact that shareholders are free to sell their shares if they are less than satisfied with the operation of the business. The situation in a private family business is completely different, with ownership in the hands of what is usually a small number of family members. This ownership model is both a huge strength and a potential weakness. The strength of a family business lies in the commitment to long-term thinking and the creation of a lasting legacy that family members bring to running a business. The ethos of many family businesses lies at the heart of the success they manage to achieve, with customers buying into a set of values as much as a particular product or service. They have a personal as well as financial stake in driving growth and creating something they can pass on to future generations. The potential downside of this emotional investment, however, is that it can lead to decision making which isn’t wholly based on a rigorous analysis of the facts and which doesn’t draw on a sufficient number of external voices. The antidote to this risk lies in creating ownership and governance models which are robust and effective, and having a clearly defined expectation of what the family business will regard as success. Ownership Model The first choice the owners of a family business will need to make applies to the model of ownership, which essentially covers issues such as who is entitled to own the business and – if there are multiple owners – how the control over the business will be shared. What needs to be remembered is that the ownership model of a family business is intended to create a structure which can successfully be passed on through the generations for many years. This means that it needs to be chosen very carefully, with reference to the strengths and weaknesses of each potential model, and, once chosen, legally enshrined within documents such as articles and agreements. In some cases, the creation of a family constitution will enable the owners to clarify issues such as what is meant by ‘family member’, who actually owns the business, how decisions will be made within the business and how the question of succession will be handled. Formulating a family constitution helps to crystallise the aims, practices and processes of the business at the same time as creating a reference point if disputes arise at some point in the future. The various ownership options include the following: Sole Ownership – one individual owns the business and has responsibility for all decisions, a model which works when firm and decisive leadership is required, and when the business as a whole creates sufficient income to satisfy those members of the family who don’t have a say in how things are run. The biggest risks of the sole ownership model arise when considering how succession will be dealt with. The question to be answered will be whether succession is based on merit or birth-right, with the risk in either case being that the expertise and talent responsible for the success of the business will depart with the sole owner. Partnership – in this model the ownership of the family business is restricted to family members who actively work within the business. This model only works if clear rules are in place to deal with issues such as how individuals can leave or join the ownership group, and how those family members outside the group will be treated. The benefits of this model include the active engagement of the owners in day to day operations (and thus a clear understanding of how the business is functioning), with more resilience than the sole ownership model, as the load and responsibility are shared. The risks of a partnership model include the chance of conflict arising over which individuals are admitted to the ownership group. Distributed Ownership – in this model any member of the family is entitled to be an owner and take part in decision making. For some families this is as much a cultural choice as a business issue, and is particularly effective when the bulk of a family’s wealth is contained within the business. The risks of this model are that some members of the family entitled to be part of the ownership group may be less engaged than others, with dividing lines opening up between those family members who operate and run the business, and those who are investors. It is also important for this ownership structure to have an exit route set out for those family members who wish to sell their shares in the business and exit the ownership group. Concentrated Ownership – in this ownership model any member of the family is entitled to be an owner, but a specified smaller group are in control of making decisions and running the business. This deals with some of the issues often faced with the distributed ownership model, such as decision-making being slow when decisive action is needed. In many cases, the structure dictates that consensus may be sought on big decisions, but ultimately the CEO has a casting vote. The majority of family businesses will make use of one of these ownership models, or a hybrid combining two or more. It should be noted, additionally, that an ownership structure isn’t set in stone, as it may need to adapt when the business grows or when a choice is made to bring in third-party decision makers. Governance The ownership of a family business is important, but the governance structure which is in place is equally important. In the case of sole ownership, for example, the ability to make quick decisions can be hugely advantageous, but if the leadership is ineffective, it can be difficult for the business to drive growth and to attract and retain the kind of talent needed to compete. The ideal governance structure will be one which occupies a middle ground between the owners having total control and some responsibility being passed over to others, and hitting this sweet-spot becomes more difficult and complex as the business – and the family itself – grows. One simple template for an effective governance structure is to divide decision making into four: Owners – sets the overarching goals of the family business and elects the board The Board – oversees the operation of the business and hires the CEO Management – handles business strategy and direct operations on a day to day basis Family – maintains clear and transparent communication with the owners This model creates clear levels of decision making, and should be bolstered by a written constitution stating clearly which of the four branches of the business are entitled to make which types of decision, and who needs to be consulted before major changes are carried out. Other issues which need to be decided and set out through the ownership and governance structures include a definition of what the business will regard as success, and the degree to which this will include matters above and beyond earning power, such as links with the wider community, a commitment to sustainability and the creation of a long-term legacy. This definition of success needs to be communicated clearly across the business and the wider family, with concrete goals put in place alongside key metrics such as debt levels and return on investment. Last but by no means least, a successful family business is one which has a clear succession plan to deal with the issue of handing over to the next generation. A continuity plan needs to be in prepared long before the issue of succession becomes urgent, with conversations taking place amongst all interested parties in the family to create a framework for succession which has buy-in from all levels of the business. An approach which involves the current owners simply handing down their plans for succession is likely to cause conflict. Should you require  assistance or support in any aspect of structural, governance or succession planning for your family business , the team at Buckles  can offer impartial, experienced guidance on all aspects of ownership transferal. Contact us now to discuss the options available.

Chancellor Rachel Reeves’ budget promises greater investment in innovation but some of the proposed changes are already causing concern for many UK family businesses. Chancellor Rachel Reeves’ budget promises greater investment in innovation but some of the proposed changes are already causing concern for many UK family businesses. Here at Family Business United we appreciate the concerns but also recognise that family firms have weathered many changes over their lifetime and have a resilience as organisations that is part of their very DNA. We want to gauge the views of the nation on the key issues that we know are causing concern in order to prioritise the resources we develop and deliver to support family firms as they seek to plan appropriately for their future. Please select the most pressing concern for your family business and help us to determine the new agenda for UK family businesses in order to develop materials to help them address these concerns. As Paul Andrews, Founder & CEO of Family Business United explains, "Family firms are the engine room of the UK economy and operate in all sectors of the economy and need support to ensure they survive for generations to come, continuing to generate income, create wealth and employment and support the communities in which they make a positive impact each and every day." "For many, some of the announcements will come as a real shock and be causing immediate concerns and as an organisation that champions what they do and celebrates their contribution to the national economy each and every day, we need to do something to help them plan for the future. We will use the findings to create our agenda to develop resources, share new insights and innovations in terms of moving forward and continue to support them in every way possible." "For many, this will be a worrying time and our community needs to pull together and continue to develop frameworks and have conversations to plan for the future and minimise the potential impacts of some of the changes that were announced today."