Entrepreneurs are more likely to consider property investment rather than a pension to build their wealth, according to research from Brown Shipley, a Quintet private bank. The survey among entrepreneurs and wealthy individuals in the UK found that entrepreneurs are more likely than wealthy individuals overall to have amassed wealth through investment in property, and less likely to have done so through a pension. Almost a third of entrepreneurs (30%) state that property investment is a main reason for their wealth, compared to 21% for wealthy Brits overall. While 44% of wealthy individuals in the UK highlight their pension as a main reason for their wealth, this falls to 28% for entrepreneurs. Property investment (30%) and inheritance (31%) are the second most cited reasons for wealth among entrepreneurs, preceded only by salary, for which around half of entrepreneurs (51%) say is a main reason for their wealth compared to 64% for wealthy Brits overall. Over a quarter (27%) of entrepreneurs say that entrepreneurialism and proceeds from a business are a key reason for wealth. More than one in six entrepreneurs (15%) say that a lottery win or gambling has had a material positive impact their levels of wealth, almost double the amount for wealthy individuals in the UK overall (8%), suggesting they may take a different approach to risks with their finances. Just over half of entrepreneurs (51%) plan to use their wealth to provide an income in retirement, versus 61% for wealthy individuals on the whole. Gordon Scott, Head of Client Solutions at Brown Shipley, said: “There is an obvious additional financial risk that comes with working for yourself, with capital tied up in the business and director salaries dependent on business performance, which may explain why many entrepreneurs look to bricks and mortar for broader wealth generation. For the same reason, some entrepreneurs might be less willing to put their money into other companies through a pension, which will tend to be primarily invested in stocks and bonds.” “Working for yourself can mean that some of the more traditional ways of saving for the future and amassing wealth – such as a pension – can be forgotten. Entrepreneurs, by their nature, will have a lot of their potential wealth tied up in their business endeavours. Business planning can often overtake personal wealth planning, but it is important to ensure the two align." "We encourage our entrepreneur clients to look at their wealth and plans holistically, and ensure they are managing risks and making the most of tax allowances, such as those offered through pensions.”

Managing your finances takes time and energy, something we mostly learn as a life skill as we progress through our careers. Unfortunately, financial wellbeing is still a subject most people in the workplace were never taught or received guidance on; we simply learnt from our parents or developed it from experience and our mistakes. In our early working years, we move from one payday to the next, occasionally wondering why we have run out of money a week before we get paid, Adrian Firth, Employee Benefits Consultant from Mattioli Woods shares his thoughts on how to plan for financial wellbeing. That is why managing money and finances takes effort and yet we all suffer from a little laziness from time to time. Having a financial plan requires just as much effort as keeping fit or mentally looking after ourselves. In fact, money issues and worries can have a detrimental effect on our mental wellbeing and vice versa, which is why it is important to continually learn and develop our financial skills. So back to my original point, that financial wellbeing takes effort. If you wanted to get fit, would you not take the time to join a club and start to build up your training? Finances are no different – there are many online resources that could be your ‘club’. Being financially sound is not about how much money you have; it is about making the best use of what you have and the continual learning you undertake and put into practice. In the exceptional times in which we live, I can see why people might worry about pensions and investments, market conditions and global commerce. There are endless news articles with real or potential worries and threats; however, I believe there are three simple, basic steps we can all take that will help us improve our financial fitness and financial wellbeing: Budget It does not matter how much money you have or how much you earn, if you do not have any plan in place then you are unable to plan ahead. All it takes is a spreadsheet or a budgeting app and you can start to take control. A budget is becoming essential for our financial lives, as many financial decisions are based on our ability to repay and our disposable income. It is not just about covering the bills and whatever is left is spending money; we need to allocate a budget for everything from rent or mortgages through to food, clothing and socialising. Having control over money is an essential step to creating financial security. Emergency Funds Many UK workers do not have anything to fall back on should the worst happen. Most are still moving from payday to payday without putting anything aside. There are many opinions on how much you need, ranging from two months’ to six months’ worth of salary, but it starts with having an element of savings in your monthly budget. An emergency fund needs to be there when you need it but not readily spendable. So, invest this fund in a bank or building society savings account that can be accessed through a branch or an online transfer, but NOT in your regular bank account (where you will spend it!). Try Not To Worry This one is always counterintuitive as we naturally worry when things start to get out of control or if we experience any financial difficulties. Rest assured, there are ALWAYS solutions to every financial problem you might have. The financial services industry and the Government really do wish to treat people fairly and with compassion, to find a solution to any issue a person has. If it is debt, there are charities and Citizens Advice with multiple solutions; if it is income, then your employer and your local council can help; if it is savings and investments, then speak to advisers and/or your bank. If you just put your hand up, you will find help is very forthcoming. So, having good financial wellbeing is not hard; it just means we need to spend time and effort to make things better for ourselves. Taking time to manage the money in and the money out is essential and starting the savings journey will help greatly with our financial security. Seeking help is essential – we all need a helping hand from time to time.

After a tumultuous past two years for businesses, even the smallest increase in supplier or software cost or change in strategy can impact a company’s profitability; every penny counts. Although business owners are familiar with ‘being online’ and tend to dabble with a mix of marketing tactics, experts say businesses should be using digital marketing strategically in order to save costs and raise revenue. Following a 1400% increase in interest for the search term ‘business cost savings’ between March to June 2022, digital marketing and website development specialist, Fishtank Agency, highlights five ways you can save costs as a business online: 1. Create a 12-month strategic marketing plan with a set budget/limited expenses Developing a marketing strategy that aligns with your overall business plan and objectives is essential to building resilience. Understanding your target audience, their wants and needs, and your own goals and key performance indicators (KPIs) as a business will not only give you clarity and results but also save you money. Planning 12 months ahead helps avoid future uncertainties and reduces the risk of failure. It allows time to coordinate tasks and distribute responsibilities, such as thorough research and visual graphic creation. You can utilise a number of organic marketing tactics to build brand awareness, an audience and ultimately new customers. An essential organic component of this strategy is content marketing. Creating and posting valuable, relevant and meaningful content is a great free way to increase your brand awareness, trust and authority, leading to increased lead/sales generation. Using a mix of the below techniques is recommended to achieve the best results: A consistent flow of social media content (organic) Monthly email newsletters Advice-led blog posting Search Engine Optimisation (SEO) Building backlinks from high authority websites 2. Choose a hosting and maintenance partner that offers flexibility Choosing a provider that regularly monitors and suggests suitable plans based on usage not only protects you from inflation but gives you the flexibility to adjust your package depending on your needs. You want a contractual agreement with a price promise for 12 months minimum to protect you and your business as the cost of living rises and other expenses increase. For example, in manufacturing, you will often find at least one period of the year where traffic is expected to ramp up significantly. This can be driven by classic product-related seasonality (e.g. sun cream in Summer) or marketing offers to inflate demand, and your website will need to be able to handle any spikes in traffic. By partnering with an agency that regularly reviews your package and suggests ways to improve the service provided, you could look to save or reallocate funds elsewhere. This relates to hosting and any monthly or annual agreement your business may be contributing to, such as website maintenance, CRM software, etc. 3. Take advantage of organic social media and email marketing Despite social media platforms bringing in 29.37 billion pounds in revenue – the marketing tools themselves are free, unlike many traditional marketing methods (print marketing, tv and radio advertisements etc.). Using organic social media content that can be packed with clickable links is also a cost-effective alternative to increasing website traffic and goal conversions, which can save on any extensive pay-per-click (PPC) budgets. Social media marketing is quick, easy and time-efficient. You can build a community of followers and gain consumer trust by providing bucket loads of resources all in one place within minutes. The platforms also allow you to humanise your brand and partner with influencers and key stakeholders. Key things to remember when managing social media for a business: Create a social media strategy based on your target audience Put together a content plan looking at key awareness days, products and services, User Generated Content (UGC), testimonials, FAQs, behind the scenes and more Schedule your posts to save time using tools like Hootsuite, Tweetdeck or Buffer Measure results using Google Analytics as well as internal social media analytics Keep an eye out for industry trends using social listening tools and Google Trends Create engaging social graphics using Canva or if your budget allows, reach out to a graphic designer for some creative direction 4. Strengthen relationships with suppliers and customers with case studies and connecting on social media By building a bank of case studies and sharing this insight across social media (tagging relevant stakeholders), you can reduce the cost of marketing efforts as it is a free and organic way to build trust and brand awareness with your audience. It not only makes your customers feel appreciated and special, but it also allows your brand to reach businesses it may not otherwise have. By engaging with your customers and suppliers on social media, you are building credibility with potential new customers that are not following your content yet; essentially, you can reach a wider audience at no expense. When writing case studies, link back to customer and supplier websites and focus on target search terms. This will support the improvement of website authority and visibility online, and Google keyword positioning will improve, increasing website traffic. To do this, use tools such as Google Search Console, Google Analytics, Moz and Google Trends to carry out your keyword research and ensure you are targeting the most relevant keywords or phrases. 5. Increase digital reach and rank higher in organic search results with traditional SEO Traditional SEO practices are one of the top ways to increase keyword rankings and reach while simultaneously trying to maximise the marketing budget. Spending money on PPC advertising and Google Ads can quickly become expensive, especially in competitive industries. Building a solid organic search presence with relevant content and strong website optimisation can be a great way to still appear at the top of the first page of Google. Users often ask Google very specific questions – and if your website gives them direct answers to those questions, the search algorithm will reward that. Support that with in-depth on-page optimisation, perfecting your meta descriptions and alt tags, and you could find yourself with a featured snippet (highlighted excerpts of text that appear at the top of a Google search results page in what is known as ‘Position 0’) or top position. Whether you use an agency to help with your SEO or invest in an internal resource to manage search presence, this strategy, in the long run, works out much cheaper than a search ads campaign that you have to fuel with money every single month. Jacy Yates, Account Manager at Fishtank Agency, summarised: “Digital marketing helps businesses of all sizes become more visible online. Whether it’s through social media, a website, or other means, digital marketing tactics can make a significant difference to a business’s marketability and profitability.” “The above tips on how you can save costs as a business online show the cost benefits of digital marketing; the key to using them is to have the right talent in-house or to find a compatible business partner in a digital agency you can trust.”

The UK’s largest family-owned furniture retailer, has scooped three major awards at a prestigious awards ceremony, celebrating the very best of British family-run firms, organised by Family Business United. Furniture Village was named Supreme Champion Family Business of the Year, Retail Family Business of the Year and London & South East Family Business of the Year at the 2022 Family Business of the Year Awards, that took place virtually this week. The retailer was recognised for its consistently innovative approach to retail, rich and meaningful family-first culture and strong growth performance, delivering sustained competitive advantage. Charlie Harrison, commercial director at Furniture Village, pictured with his father Peter, comments: “We are humbled to have won not one, but three awards at the Family Business of the Year Awards.” “Our philosophy of ‘doing it right’ spans across our entire business, and it’s a real testament to our staff and stores to have won all three awards.” “Family is the lifeblood of our business, not just the Harrison family, but many other families that put their heart and soul into making our business what it is today.” Businesses were judged on a host of criteria including philanthropic activities and post-pandemic challenges, as well as how much involvement family members play in the day-to-day operations. Family Business United’s managing director Paul Andrews comments: “It is an absolute honour to champion Furniture Village, celebrating the immense contribution they make to the local, regional, and national economy. Furniture Village’s contribution deserved to be recognised and the Family Business of the Year Awards celebrate the very best of British, family firms that have a narrative, clearly defined values, and a real sense of purpose.” Each win was warmly welcomed after overcoming a number of challenges set upon the retail industry throughout the past two years. Paul Andrews adds: “Family firms are the backbone of the UK economy and across the UK they will be vital as the economy recovers from the events of the past few years. Congratulations to Furniture Village for each truly deserved award.” Charlie Harrison concludes: “It’s fair to say we’ve been challenged on a number of occasions over the past few years, yet through all of this, we’ve achieved a remarkable milestone of our biggest turnover ever." “From post-pandemic recovery that has seen supply chain pressures, to world-wide shipping issues for the entire consumer industry, this fantastic milestone brings us back to our philosophy of ‘doing it right’, showing we can pull through and take a magnificent win along the way.” The awards ceremony, which takes place annually, was sponsored by Mattioli Woods amongst others. In light of the success of previous years and the benefits associated with virtual events, Family Business United took the decision to conduct the awards online again, allowing those involved to share the event with family members and colleagues to watch and celebrate across the nation.

The latest figures from HM Revenue and Customs (HMRC) show that inheritance tax receipts received by HMRC increased by £300 million to £1.8 billion in the three months period of April 2022 to June 2022. This is an increase from the same period in the previous year, and continues the upwards trend over the last ten years. One in every 25 estates pay inheritance tax, but the freeze on inheritance tax thresholds, inflation at its highest level for 40 years and decades of house price increases are bringing more and more estates above the threshold. For those that are paying this death tax, Wealth Club calculations suggest the average bill could increase to just over £266,000 this tax year. This is a 27% increase from the £209,000 average paid just three years ago. Inheritance tax is typically paid at a rate of 40% over certain thresholds (noting you can pass on money IHT free to your spouse or civil partner, whose enlarged estate could then be subject to IHT when they die). The main threshold is the nil-rate band and applies to the vast majority of people in the UK, enabling up to £325,000 of an estate to be passed on without having to pay any IHT. There is also a Residence Nil Rate band worth £175,000 which allows most people to pass on a family home more tax efficiently to direct descendants, although this tapers for estates over £2 million and is not available at all for estates over £2.35 million However, the nil-rate band has stayed at the £325,000 level since April 2009. Inflation has risen 45% over this time and average house prices have increased 67%. Alex Davies, CEO and Founder of Wealth Club said: “The Treasury raked in an extra £300 million from inheritance tax from May to June 2022 compared to the same three months a year earlier, this increase is being fuelled by soaring house prices and years of frozen allowances which are now being decimated further by rampant inflation. Currently just 4% of estates pay inheritance tax, but given the nil-rate and main residence nil-rate bands are frozen until at least April 2026, it is likely the estates of many individuals with more regular incomes and average value homes, will end up getting caught out by this most hated of taxes.” “Moreover, with the government purse under pressure from all angles there is unlikely to be any respite from this soon. The good news however is that there are still lots of perfectly legitimate and sensible ways to pass on money free on inheritance tax to your heirs and it is for this reason that inheritance tax in some circles is referred to as a ‘voluntary tax’.” 1. Make A Will Making a will is the first step you should take. Without it, your estate will be shared according to a set of pre-determined rules. That means the taxman might end up with more than its fair share. 2. Use Your Gift Allowances Every year you can give up to £3,000 away tax free. This is known as the annual exemption. If you didn’t use it last year, you can combine it and pass on £6,000. You can also give up to £250 each year to however many people you wish (but only one gift per recipient per year) or make a wedding gift of up to £5,000 to your child; up to £2,500 to your grandchild; up to £2,500 to your spouse or civil partner to be and £1,000 to anyone else. 3. Make Larger Gifts Pass on as much as you like IHT free. So long as you live for at least seven years after giving money away, there will be no IHT to pay. 4. Leave A Legacy – Give To Charity If you leave at least 10% of your net estate to a charity or a few other organisations, you may be able to get a discount on the IHT rate – 36% instead of 40% – on the rest of your estate. 5. Use Your Pension Allowance Pensions are not usually subject to IHT – they can be passed on tax efficiently and, in some cases, even tax free. If you have any pension allowance left, make use of it. 6. Set Up A Trust Trusts have traditionally been a staple of IHT planning. They can mean money falls outside an estate if you live for at least seven years after establishing the trust. The related taxes and laws are complicated – you should seek specialist advice if you’re considering this. 7. Invest In Companies Qualifying For Business Property Relief (BPR) If you own or invest in a business that qualifies for Business Property Relief – the majority of private companies and some AIM-quoted companies do – you can benefit from full IHT relief. You must be a shareholder for at least two years and still be on death though. 8. Invest In An AIM IHT ISA ISAs are tax free during your lifetime but when you die, or when your spouse dies if later, they could be subject to 40% IHT. An increasingly popular way of getting around this is by investing your ISA in certain AIM quoted companies which qualify for BPR. You must hold the shares for at least two years and if you still hold them on death you could potentially pass them on without a penny due in inheritance tax. 9. Back Smaller British Businesses The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) offer a generous set of tax reliefs. For instance, SEIS offers up to 50% income tax and capital gains tax reliefs, plus loss relief if the investment doesn’t work out. But EIS and SEIS investments also qualify for BPR, so could be passed on free of IHT. 10. Invest In Commercial Forestry This is an underused option for experienced investors. Pension funds and institutions have long ploughed money into forestry. The Church Commissioners has a forestry portfolio worth £400 million. Commercial forest investments should be free of IHT if held for at least two years and on death. You should also benefit from capital appreciation in the value of the trees (and the land they are on) and from any income produced by harvesting the trees and selling the timber (this income may also be tax free). 11. Spend It One sure-fire way to keep your wealth away from the taxman’s hands is to spend it!

With a recent family wealth report by Julius Baer stating that only 1 in 10 ultra-high-net-worth families have a formalised governing body, it’s no surprise that family governance continues to be a significant source of interest for the very wealthy. The continued growth of global wealth and allied growth in the number of family offices around the world means an increasing number of wealthy families will be grappling with the issue of governance and family offices. The latest report (below) from Russell Prior of HSBC Global Private Banking highlights some of the areas for consideration. Russell leads the Family Office Advisory and Family Governance practice for HSBC Private Banking across EMEA. He is also the author of Family Governance and Surplus Wealth: Sustaining Family Fortunes which was published in June 2021. Read the full report here:

The population is young and the economy has been growing for years. Vietnam exported goods worth 319 billion euros in 2021. Ten years earlier, the figure was 84 billion euros. That’s how long ago it was that Gebrüder Weiss opened two of its own locations in the South-East Asian country: one in the economic centre of Ho Chi Minh City (Saigon) and the second 1,600 kilometres further north in the capital Hanoi. “Today we know that was the right decision,” says Cristian Predan, Area Manager South-East Asia at Gebrüder Weiss. “The economic environment in Vietnam has improved steadily since we opened our first location there. The country’s road and port infrastructure has been expanded, while demand for consumer and industrial goods is rising among the exceptionally young population.” Exports include products from the electronics, mechanical engineering, aviation, chemical and food industries. Gebrüder Weiss mainly transports these goods for its customers to Singapore, South Korea, Europe, and the USA. Last year, the company increased the number of air and sea freight shipments by around 30 percent compared with the previous year. In Vietnam, Gebrüder Weiss manages several activities, including the spare parts logistics of European mechanical engineering companies, and operates a logistics warehouse for an international furniture manufacturer – including picking, packing, labelling and customs clearance. Vietnam is already the tenth country in which the logistics company has its own branches in East Asia and Oceania. The network now includes locations in China, Hong Kong, Taiwan, South Korea, Japan, Singapore, Malaysia, Australia, and New Zealand. Currently, the potential benefits of extending the network to neighbouring countries of Vietnam are being evaluated. Gebrüder Weiss already organizes cross-border land transports to Cambodia as well as domestic sea transports from the south to the north of the country.

Growth is the lifeblood of family business, essential to ensuring the business will continue to prosper for future generations. For the next generation of family business leaders, growth and sustainability go hand-in-hand. In new research from PwC, 65% of next generation (NextGen) family business members say achieving business growth is a top priority. At the same time, nearly the same number, 64%, say their family business has the opportunity to lead the way in sustainable business practices. More than half, 55%, believe their family business puts sustainability at the heart of everything they do, while 71% recognize their business has a responsibility to fight climate change and its related consequences. PwC’s Global NextGen Survey 2022, surveyed more than one thousand NextGen members in family businesses across 68 countries globally to understand their key priorities and challenges. Peter Englisch, Global Family Business Leader, PwC Germany said: “It is difficult for a family business to survive multiple generations. The NextGen members we spoke with, like the current generation, understand the fundamental need for growth to create value for future generations. The NextGens also recognize that it will take new approaches and skills to drive growth and keep the business thriving. It makes sense that addressing sustainability and climate change are high on their agenda.” While NextGens clearly see sustainable business practices as integral to long-term success, the Survey shows they may need to step up their engagement in the near term. Areas where NextGens say they are actively engaged at present include achieving business growth (59%), ensuring the business is offering the right products and services (50%) and adopting new technologies (44%). Only 28% say they are currently engaged in increasing the focus on sustainability and impact, though 72% say they expect to be involved in it in the future. Similarly, just a quarter of NextGens say they are presently engaged in reducing their business’ environmental impact, where 65% expect to be in the future. Pandemic Impacts NextGen Family Business Participation The COVID-19 pandemic was a double-edged sword for NexGen involvement in the family business. Close to half of respondents, 43%, say they feel more committed to the business than they did prior to the pandemic and that they are now more involved in the business. More than half, 56%, believe that communication between family members about the business increased during the pandemic. But the uncertainty created by the pandemic also appears to have made the current generation less likely to relinquish control and more difficult for NextGens to establish themselves. Only 28% of NextGens say they are given significant internal operations to run, compared to 48% in our 2019 survey; 32% say they are used as a sounding board, down from 36% in 2019; and 45% find it difficult to prove themselves as a new leader or board member. Reluctance of the current generation to retire poses a particular challenge for NextGens, according to 57% of those surveyed. Further, 39% of the NextGens say there is resistance within the business to embrace change. A very positive development for NextGens and family business in general is that 61% say the family has a succession plan and 39% of NextGens say they were involved in its development. Peter Englisch said: “Robust succession planning is essential for the family business. NextGen leaders have become more engaged and committed to the business – the challenge is to build confidence between the current and next generation. Our survey shows communication has increased and this is a good basis for a new generational contract. This is the time to flesh out succession plans and to define the leadership skills required to deliver growth in the future, the key benchmarks on the route to succession, and what NextGens must do to demonstrate they are ready to take the reins. That way the current generation can transition to a supporting role with greater confidence.” NextGens Bring Fresh Perspective PwC also recently surveyed the current generation of family business owners, and while they see eye to eye with NextGens in a lot of areas, there are some notable differences. Both generations are focused on growth, but only half of the current generation believe their business has a responsibility to fight climate change and its consequences, compared to the nearly three-quarters of NextGens. A similarly high percentage of NextGens (76%) believes their business is actively contributing to the community, again compared to just over half (54%) of the current generation. There is also a bit of a digital divide between the generations. Similar percentages, 42% of NextGens and 38% of the current generation believe their business has strong digital capabilities, but a third of NextGens say the current generation does not fully understand the opportunities and risks for digital within their business. Family Business Can Better Empower Women NextGens The survey shows that many family businesses could gain from bringing greater attention to the relative roles of their male and female NextGen members. Far fewer of the women NextGens surveyed, 43%, are in leadership roles than are the male respondents, 59%. Not surprisingly perhaps, fewer women, 66%, have a clear idea about their personal ambitions for a future role in the family business compared to men NextGens, 79%. Moreover, for the top-ranked priority area of achieving business growth, just half of women, 53%, say they are actively engaged, compared to 69% of men. Women play a relatively active role compared to men in areas including improving working conditions (44% to 46%), increasing the focus on investments for sustainability and impact (33% to 29%) and reducing the organizations environmental impact (27% to 26%) but there is the opportunity for women to play a larger role in many of the key priority areas. Peter Englisch added: “Family business is a good barometer for the global economy and we are encouraged by the findings of our survey." "The NextGen of family business sees the vital link between ESG and growth. They are ready to learn, adapt and play a larger role in shaping the future for the business and the family. The commitment we see from the NextGen gives us optimism for a future built on sustainable growth.” Download and read the full report here:

When a founder becomes such a larger-than-life character that they overshadow everyone around them, continuity of the business becomes challenging. Sometime a founder’s image is so publicly associated with his or her company, one rarely stops to ask, “who is that person?” A few, such as Colonel Sanders of Kentucky Fried Chicken, Henry Ford, and Ralph Lauren become something even more than that, they become ‘iconic.’ For many family businesses, having an iconic founder has enormous benefits. But as BanyanGlobal’s Marion McCollom Hampton and Ben Francois wrote in the Harvard Business Review, that can be a mixed blessing. As Hampton and Francois discussed in this article, though it might be beneficial to have an iconic founder at the helm of a business for years, it can also cause family leadership beyond the founder to be much more challenging. After all, who can live up to the image of a truly ‘iconic’ founder who has become a kind of exaggerated character – a two-dimensional representation of the business without any visible human imperfections? Just google ‘Colonel Sanders or Henry Ford quotes’ and you’ll see the continued reverence for those founders. When a founder becomes a larger-than-life icon synonymous with the business itself, he begins to overshadow everyone and everything around him. Worse still, an iconic founder can start to believe his own hype and hold next generation leaders to impossible standards, create a ‘loyal’ workforce that is resistant to new leadership, and potentially even cause family members to walk away from the business. Ironically, a wildly successful iconic founder can unintentionally set his beloved business up for failure in future generations. So how can a family business avoid that very significant downside? Hampton and Francois shared their thoughts in their Harvard Business Review article. Sometimes the individual entrepreneur is in fact as wise and kind as the image portrays him to be. But in many cases, that real person behind the iconic status is all too human. Successful business leaders, iconic or not, make mistakes in business and in their personal lives. But we have seen iconic founders who begin to believe their own publicity and consistently choose to grow their image over helping others to shine. Sometimes, they hold their children up to such high standards – standards that they think reflect their ‘perfect image’ – that the next generation feel (rightly so) that they can’t possibly meet them. Iconic founders often lack empathy for the sacrifices others (family, employees) are making. They see the world through one lens, which leads them to push for business growth and celebrity at the expense of all other priorities. As the iconic founder’s family seeks Dad’s approval, he just pushes harder to promote his image as super-human. Those closest to him find it hard to challenge him in any setting, business or family, for risk of being disregarded by the icon – better to agree and stay in good graces than confront and be shut out. Hampton and Francois have seen difficult dynamics evolve in families of the iconic founder. When the icon makes irrational demands or unkind judgements, everyone snaps to order – no one disagrees. Family members’ (and often employees’ and colleagues’) unpleasant experiences with the icon get buried: to discuss their pain or to criticize is to be disloyal. The iconic founder’s flaws – some of them grave – stay invisible. And the grandchildren can be affected as well: younger family members know that there are bad feelings and even events that have been covered up, but they don’t know what actually happened. To ask is to run the risk of taking the icon off the pedestal, and then to be criticized or even ostracized from the family. Finally, the lasting effects of an iconic founder can stretch beyond his or her impact on the family to thwart the growth of the business going forward. The icon can cultivate and leave behind a ‘workforce of the past,’ with loyal long-term employees defaulting to the icon’s preferred ways of managing at the expense of fresh ideas. They can nurture a culture of ‘yes'[ people rather than independent thinkers and drive creative next generation family members away from the business and into their own endeavours where they have more control. We highlight some of Hampton and Francois’ ideas for navigating the challenges of an iconic founder below: How The Next Generation Can Counter-Balance An Icon When family members recognize the complexities of having of a truly iconic founder, you can feel trapped. But there are steps you can take to prevent an iconic founder from overshadowing the next generation’s chance to grow and develop as individuals in your family businesses: First, acknowledge and appreciate the contributions of the founder, but don’t let his shadow shade your identity. Recognize that the founder was a dynamic person who took risks with his career and with the business. Think of the founder as an inspiration, not a constraint. Forge your own career based on your skills and passions, whether within or outside of the business. Avoid the temptation to be a clone of the icon. Second, look forward, not backward. Recognize that your generation will need to find your own way. As next generation family members you may not yet be running the business, but as future owners, you can start to communicate, meet, develop trust, and determine how you want to be collective owners of the business. You do not have to be tied to the founder’s version of how family owners should operate. Third, be prepared to evolve. You will need to recognize the impact of the icon on the family and the business, and to have the courage to say, “we need to do this differently.” Families who move successfully past the iconic founder refresh their strategies and push their businesses to evolve. In the family, they allow the “icon” to fade and instead acknowledge the talented and flawed relative. About the Contributors: Marion McCollom Hampton is a co-founder and Senior Partner at BanyanGlobal Family Business Advisors. She has been a leader in the family business advisory field for more than 30 years and is a co-author of the foundational work Generation to Generation: Life Cycles of the Family Business (HBR Press, 1997). Ben Francois is a Principal at BanyanGlobal Family Business Advisors, specializing in family business ownership strategy.

A year ago, family enterprises that wanted to automate governance processes had to buy tools from multiple vendors. Today, vendors assimilate adjacent functionality, turning their point products into full-stack governance platforms. As we enter year-three of the global pandemic, a lot is changing in the family enterprise landscape, presenting a goldmine of opportunity for families to look digitally inward and move the technology needle. Trusted Family’s global community of over 160 family enterprises is at the brink of this opportunity. For them and many other family-owned enterprises across the globe. Nanditha Vijayaraghavan, Head of Marketing & Growth at Trusted Family and Samuel Bruehl, Partner, Generation Transition Advisors share their top predictions to leverage the power of digital governance ecosystems and thrive this year. Prediction 1: Remote collaboration will increase helping to keep the “wind in the sails” of family and shareholder governance The past two years have been challenging for all of us. For owners of family enterprises, the pandemic has put to the test the strength of family unity and the engagement of family owners. Family enterprises have proven to be resilient and agile. To maintain momentum on family and shareholder governance work, technology has been leveraged to communicate, share documents, and make decisions. The experience for most families has been positive. In the past, most work on family and shareholder governance would take place during a small number (usually quarterly) scheduled meetings throughout the year. With the transition to remote meetings and virtual collaboration, we are observing an increase in asynchronous working to maintain momentum on family and shareholder governance initiatives. Family members contributing to these efforts are meeting more frequently remotely for shorter meetings and then working independently on assignments. For example, one Family Council managed a project to establish a family employment and next generation talent development program using an asynchronous collaboration model. They formed two committees to work on each priority remotely. Each committee came together every 2-3 weeks for 6 months to discuss and make decisions on the design of the family employment policy and the talent development program. In-between meetings, family members were given assignments and collaborated online using a data room to share files and working documents. Using this asynchronous model, a project that normally would take a year or more to complete with 4-6 in-person meetings, was in fact completed in 6 months. We are optimistic that in 2022 we will see a return to “normal.” For business-owning families this will be a year to rekindle relationships and family traditions that have helped to maintain family unity across branches and generations in the family. For families with established family and shareholder governance structures and processes, this will mean that important Family Council and Shareholder Council meetings will take place in-person and this is where the big decisions will be made. However, the asynchronous approach to collaboration will continue and this will be an important way for Family Councils and Shareholder Councils to maintain momentum. It will create efficiencies by increasing the speed at which work is completed between meetings. The costs for Council meetings will also be reduced because families will opt for in-person meetings that are high impact but less frequent and for more virtual collaboration between meetings. Prediction 2: Digital centralization of family and shareholder information will be the norm Now that we have all become more comfortable working remotely, we foresee the year 2022 placing greater emphasis and more investment in ensuring family and shareholder information is accessible in one single place. There will be fewer people regularly coming together for in-person meetings, which means all the family and shareholder information that has traditionally been filed and updated in the office will now need to be accessible in a centralized online location. One family specifically invested in an online “Data Room,” which stores all the family and shareholder policies, meeting documents, and personal information on family members. Family members based on their roles can access different parts of the data room. Centralizing the family and shareholder information in this way, has led to greater feeling of transparency across the family, family members feel better informed, and decisions have been made faster because family members can more access necessary documents to review and provide input on to support decision-making. Prediction 3: Business-owning families will up their data security game In our experience, most families still lack sophistication in the way they manage family and shareholder information electronically. Many business families do not have well-defined and established cybersecurity policies and family and shareholder information is managed electronically in an ad-hoc manner. With the increase in asynchronous working and virtual collaboration, families will be investing in cybersecurity technology and trusted information management platforms to provide state-of-the-art data security protection. The Bottom Line: The pandemic has been an essential reminder of the potential of family enterprises, particularly regarding the possibilities stemming from technology. Digitalisation helped many businesses pivot their operations quickly in the past two years which was a wake-up call to many family-owned businesses on the importance of continuing to invest in their information technology infrastructure. Our message is simple: this is the tipping point and now is the time to act. Digitalised governance will become increasingly popular and family enterprises with established digital capabilities will likely fare better than those that are scrambling to keep up. Authors – Nanditha Vijayaraghavan, Head of Marketing & Growth, Trusted Family and Samuel Bruehl, Partner, Generation Transition Advisors

Making a Will is a vital part of any estate planning exercise. Sharing wealth with family and other loved ones in the most tax efficient way possible, is a priority for most people. Their aim is to provide for partners and ensure that children are supported financially to achieve their goals, whether those include buying a property, or starting a family or business. In this article, Anthony Thompson, a Partner in the Private Client team at Forsters shares his thoughts. Given this strong desire to share their wealth, it is concerning that nearly two thirds of adults in the UK do not have a valid Will in place. Statistically, a high proportion of these will continue to have no Will at their death. This means that their estates will be distributed to whichever family member stands in line to benefit under the intestacy rules, and with no choice of who acts as executor. What Happens If You Don’t Have A Will? As an example, if someone dies intestate (without a will) leaving a spouse and children, the spouse will have the right to: Administer the estate. Inherit all the personal belongings. Inherit a legacy of £270,000 and one half of the remaining estate. The balance of the estate will pass to the children in equal shares. This will rarely be the result that the deceased would have chosen. In fact, dying intestate can be the catalyst for serious friction within a family that, in the worst cases, may end in litigation. Every family is different, with unique dynamics between family members that a Will can help to accommodate. A testator may be part of a cohabitating couple, or in a second marriage or civil partnership. There may be children or step-children (or both) with whom they may or may not get on. They may have adopted children or, increasingly, their children may have been born by way of surrogacy, which raises its own inheritance issues. Adult children or step-children, in turn, may be in difficult relationships with spouses, civil partners, boyfriends or girlfriends. It is also worth noting that intestacy can have unfortunate inheritance tax consequences which it may be possible to mitigate with a Will. Why Make A Will? Such complex relationships provide strong reasons for individuals to ensure they have a Will in place. However, even those with more straightforward family arrangements should make a Will to ensure that their spouse, civil partner or other partner, children and members of their wider family, receive the gifts and shares of their estate that they wish to leave, and that the people they wish to administer their estate are appointed to do so. Many people also choose to appoint guardians for their children in their Wills. While this can be a good approach, choice of guardians can sometimes be one of the most difficult decisions for a couple to make. As such, it is important not to hold up signing a Will because this issue remains outstanding. Once guardians are chosen, a separate deed can be drawn up or a couple’s Wills can be updated, whether by making a new Will, or using a separate document, known as a Codicil, which is read as if it was part of the Will itself. Life Events And Other Reasons For Updating A Will There are many reasons for updating a Will. A testator’s choice of executors or guardians may be out of date. They may have changed their mind about legacies; who should benefit or how much they should receive. There may be a statutory reason, for example, where trusts have been set up in a Will that now need to last into the grandchildren’s generation and beyond. Before April 2010, the fixed period a trust could last was limited to 80 years. This has been extended to 125 years, and Wills that pre-date this change should be changed to take advantage of the longer period. Significant life events may affect the validity of an existing Will, or the nature of the legacies within it. Marriage Or Civil Partnership Unless a Will is made expressly in contemplation of marriage or civil partnership, it will be revoked automatically on either of these events taking place. As such, couples getting married or entering into a civil partnership should ensure that they make new Wills or Codicils, either in advance, clearly stating their intention to marry or become civil partners, or as soon as possible following the ceremony. The Arrival Of Children The arrival of children is an exciting, but incredibly busy time. However, it is obviously important to ensure that children are properly provided for in the event of a parent’s untimely death. Many Wills will already include gifts in favour of future children, but even if this is the case, it is important for parents to re-visit their Wills to ensure that such gifts continue to reflect their intentions. Divorce, Second Marriages Or Civil Partnerships And Second Families Divorce or the dissolution of a civil partnership does not invalidate a Will, but instead the Will is read as if the former spouse or civil partner had pre-deceased the testator, and his or her estate passes accordingly. While this may be what the testator would want, that may not always be the case. In any event, it is a good idea to revisit the terms of a Will following a divorce. Once again, any subsequent marriage or civil partnership will invalidate a pre-existing Will unless made in contemplation of this event, so individuals should review their Wills before, or as soon as possible after, getting married. This is particularly important, because consideration will be needed to ensure that legacies take account of any children (or grandchildren) of the previous marriage, as well as the needs of a new family. Updates To Take Account Of Legal Changes Transferable nil rate band: Changes to the law made in October 2007 mean that it is no longer necessary to make specific provision in a Will for the use of the nil rate band (the value of a Testator’s estate which can pass tax-free to any beneficiary, currently £325,000)). This band is now transferable to the estate of the surviving spouse or civil partner in the event that it is not fully utilised on the death of the first to die. When updating their Will, testators may choose to remove a nil rate band trust or other gift where one is included, in favour of a different type of legacy. Residential nil rate band: Another, more recent, nil rate band-related change applies to estates that include a residential property that has been the main residence of the deceased. If this passes to a child or other direct descendant of the deceased, an additional £175,000 “residential nil rate band” may be available (£350,000 if the transferable nil rate band from the other spouse is available). There is a tapering of the relief for estates with a value over £2 million, so this nil rate band will not be available in all circumstances. In most Wills, such a property would be left to a spouse and then to children, or to children directly. However, where this is not the case, testators may wish to revisit their Wills to take advantage of the residential nil rate band where it is available. Trusts – discretionary or life interest: Historically, Wills often included a life interest trust, initially naming the surviving spouse as the life tenant (who would be entitled to the income of the trust during their lifetime) and then for children and grand-children. More recently, following changes made in 2006, such trusts have fewer tax advantages than in the past over discretionary trusts, at least once the surviving spouse or civil partner has died. Consequently, many more Wills nowadays for testators with a significant asset base, are set up as a flexible discretionary trust, rather than a life interest trust. The discretionary trust will name the close family members who are to benefit and will often include a power given to the trustees to add further beneficiaries at a later date. The precise wishes of the testator are set out in an accompanying (but non-binding) side letter just as they can be with a life interest trust. The letter can say whatever the testator wishes in his or her own style. It has no specific legal format and can be updated by the testator at any time to take account of changes in circumstances and without going through the formalities of preparing a new Will. Such a format provides significant flexibility. Testators can provide guidance to the trustees as to how their property should be distributed, or how their business should be run, and by whom. At the same time, the trustees are not bound by these wishes, as they would be by clauses in a Will, and can adapt them to take account of different scenarios as they arise. For example, if a potential beneficiary is in a difficult relationship, or is likely to be divorced, the trustees will be able to monitor how and whether he or she receives income or capital, and consider how best to avoid an inheritance falling within a financial settlement. Where A Discretionary Will Is Not The Solution A discretionary Will may not suit every situation. A couple may prefer more clarity, perhaps because theirs is a second marriage for one or both of them, or they are troubled by the non-binding nature of the side letter. However, where a Will contains a trust, whether it is discretionary or includes a life interest, testators should consider carefully the level of freedom they want to give their executors, trustees and guardians (where relevant) as the ultimate decision-makers. International Considerations Additional considerations apply to individuals with international connections. Anyone who is resident outside England and Wales, but who owns property in this country, or who is resident here with property abroad, should take advice on how best to ensure a smooth succession to their assets wherever they are located. The domicile of the individual concerned may also be relevant. Under the general law of England and Wales, the place where an adult is domiciled may vary during their lifetime. It will depend on whether they retain their domicile of origin (generally where their father was domiciled at the time of their birth) or have acquired a different domicile of choice (the place where they intend to live permanently or indefinitely). This may be relevant in the context of succession to their estate because under the law of England and Wales, the law of the place where property is situated governs the distribution of immovable property (e.g. their residence or commercial property). On the other hand, an individual’s movable property (e.g. cash, bank accounts, shares, works of art etc) passes according to the law of the individual’s domicile at death. For this or other reasons, in some cases, it may be advisable for an individual to have more than one Will, each dealing with property in different jurisdictions. In addition to the legal issues, practically this may help to ensure that such property can be dealt with and distributed as quickly and efficiently as possible following their death. If a testator has more than one Will, care must be taken to ensure that those made in different jurisdictions do not contradict, or even revoke, each other. It is also vital to ensure that the intended gifts can be made under the law of the relevant jurisdiction. Legal advice in each jurisdiction in which property is held should always be taken, whether a local Will is being made, or all property is to pass under a single Will. The full pdf of this article is available to print and download below:

There were a record number of job vacancies in the UK this year centred around environment, social and governance (ESG) – with more anticipated in 2022 according to global recruiter Robert Walters. There have been more than 35,000 new jobs created this year alone around ESG – with the number of people moving into these roles increasing by +7% to now represent upwards of 400,000 professionals in the UK. The heightened focus on ESG comes as the UK presses ahead with its world-leading commitment to reduce its greenhouse-gas emissions to net zero by 2050, in addition to mounting pressure on listed companies to be more transparent around pay and representation at board level. Added to this the Financial Conduct Authority (FCA) recently announced their work with Government to improve transparency and data discrepancy, in a bid to put UK financial services and regulation at the forefront of ESG internationally. All of this is leading to ESG being treated with increasing importance by business leaders, where currently half of the country’s leading firms link executive pay to ESG measures. The findings come from a new report from recruiter Robert Walters: Environment, Social, and Governance: Mindset Over Must. Chris Poole, Managing Director of Robert Walters UK comments: “Right now, businesses are under more scrutiny than ever. Processes, suppliers, materials, and policies often have more of an impact on consumer actions than a finished product. As governments strive to achieve environmental targets, and the choice widens for customers on socially-conscious products and services – ESG will increasingly become more critical for survival, and not just for investment.” “With that the number of ESG roles across the UK has risen sharply this year and will continue to grow as organisations strive to be more ethical, fair and inclusive.” “These roles can sit in HR (+19%), IT (+18%), Marketing (+18%), Finance (+6%), Research (+6%), Legal (+3%) or standalone roles reporting directly to the Board – and will lead to new working practices impacting organisational sustainability and resilience, whilst also building long term value for Stakeholders.” Ticking the box with sustainability: 54% increase in CSR job vacancies when compared to pre-pandemic levels 28% of CSR vacancies is for senior roles – up from 7% A quarter of CSR hires comes from consumer goods industry 51% of professionals state that it is important that their employers CSR-values align with their own Roles relating to corporate social responsibility (CSR) increased by +54% when compared to 2019 pre-pandemic, and by +121% when compared to 2020 – with May 2021 being the second-busiest month on record. Recruitment has also been steadily shifting to senior hires, from 7% of total CSR vacancies in 2019 to 28% in 2021. Not surprisingly the industry where hiring for CSR experts is most prominent is consumer goods and services – which accounts for nearly 23% of all professional vacancies. Chris adds: “Some thought that in a global crisis, ESG targets would be the first to go. However, many companies strengthened their commitment to ESG during the pandemic. The suggestion also that people would care more about jobs and rocketing government debt over, for example, more socially conscious behaviour, appears misplaced.” Companies press ahead with D&I agendas: +32% increase in D&I roles compared to pre-pandemic levels 40% of D&I roles are for senior positions within an organisation 2/3 of fund managers reduce investment in companies that score poorly on D&I 62% of professionals would turn down a job offer from a company with poor D&I initiatives 1 in 5 D&I-related vacancies are advertised by the technology sector D&I-related professional vacancies in the UK have increased by +32% when compared to 2019 pre-pandemic, and by +202% from 2020 – with peak activity taking place in Q4 2020 post the Black Lives Matter protests in the summer. The majority of roles (40%) are for senior positions based in London (52%). The industry with the largest share of D&I-related vacancies is technology, media and telecoms (TMT) – representing 21% of all advertised roles, followed by the public sector/ not-for-profit (19%), and financial services (13%). Robert Walters analysts predict that hiring within this space will continue to increase, particularly when research shows that almost two-thirds of UK fund managers are reducing their investments in companies that score poorly on D&I metrics. Governance high on boardroom agenda: +87% increase in Corporate Governance roles since 2020 1/3 of job roles are for senior positions within an organisation 40% of all Corporate Governance roles is within professional services £430m+ is the cost of Corporate Governance per year in the UK A record number of vacancies for corporate governance roles was recorded in spring/summer this year – with job roles up by +87% from 2020. The UK government has hinted at plans to significantly increase the number of companies subject to stringent governance standards. This news has pushed many in the sector to get on the front foot where the biggest industry for corporate governance vacancies is professional services — responsible for over 40% of all hiring so far in 2021, followed by financial services (21%). Chris adds: “Over the last decade, we have seen a significant shift in the way that businesses approach social responsibility – with ESG making its way rapidly up the priority list. In 2019, the Global Reporting Initiative revealed that 93% of the world’s largest companies by revenue already report on their ESG performance. That these corporations believe it is important to publish their work in this area reflects how central ESG has become to the way some of the larger multi-national corporations have started conducting their businesses.” So why ESG is important from an employment perspective? 1. Reputation: Businesses which are failing to meet the expected ESG performance standards should expect to see a knock-on impact on their reputation. As a workforce strategy, ESG has become a competitive advantage in attracting and retaining talent; numerous studies have shown that, when weighing up potential employers, millennials are hugely influenced by how a business responds to and tackles social issues. 2. Productivity : Companies with a strong ESG and labour relations proposition have better productivity. Addressing the widening gap between executive and workforce pay is also directly linked to productivity. Fairer incentive structures can help drive an inclusive culture and employee engagement, which in turn, can boost productivity. 3. Value : Almost all investors and stakeholders are now alive to ESG performance, and want to see not just short-term plans but also how the core business model incorporates and deals with these issues in the long term. Businesses that do not have an ESG and labour relations agenda will find themselves struggling to find investment from savvy backers, who recognise the need to manage these risks and promote compliance. 4. International standards : Businesses will no longer be able to rely on their geographical location when complying to base level labour laws. There are international frameworks that set out expected employment standards across the world by which non-governmental organisations, investors, other stakeholders and the media are now judging businesses. This includes: the UN Global Compact; the International Labour Organisation Conventions and Declarations; the International Bill of Human Rights and the OECD guidelines. 5. Legal compliance : The ability to investigate ESG breaches and issue fines has significantly increased. For example, gender pay gap reporting is now a legal requirement in the UK for companies with more than 250 employees and similar legislation applies in Ireland, Australia, and California. While the level of penalties varies considerably from country to country, the willingness to impose top-level fines has increased across the board.