Generation Magazine • Spring / Summer 2016 •
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Dedicated to promoting and supporting British family firms
Featuring:
James Reed Following in his father’s successful footsteps
CPJ Field & Co Keeping it in the family since 1690
North East’s Finest Discovering the region’s most enterprising families
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Building her beauty empire
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To make sure you get everything you need to grow and thrive for generations to come, we have created a truly unique membership. Offering support, advice, connections and publicity, it’s a membership like no other for family businesses. Join us online today: www.familybusinessplace.com
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IN THIS ISSUE
contents
2016 is well and truly upon us, so we hope you enjoy the Spring/Summer edition of Generation magazine featuring some fabulous stories and advice from the family business community.
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05 EDITOR’S LETTER
The vital role family firms play in the UK economy
07 OPINION/BLOG
Running a successful business with your children can be hard, how can you nuture that relationship?
09 UPFRONT
CHARLIE MULLINS talks employment, foreign workers and immigration GENERATION CREATIVE TEAM: Creative Director: Anita Brightley-Hodges anita@familybusinessplace.com Head of Design: Colin Fielder colin@familybusinessplace.com Designer: Olympia Brightley-Hodges olympia@familybusinessplace.com Photographer: Nick Gillott nick@nickgillott.com
SNAPSHOT the BREXIT debate FAMILY BUSINESS NEWS stories from the world of family business 2015 FBP CONFERENCE REVIEWS Highlights from the Northern Family Business Conference at Tennants Auctioneers and the National Family Business Conference in London.
28 MEETS
REENA HAMMER has forged a name as one of the beauty industry’s most influential women CHARLIE FIELD talks multigenerations and how they are shaking up the funeral industry JAMES REED developing his family business and the boom of the internet revolution
41 NORTH EAST OF ENGLAND’S FINEST
Shining a light on the best of the North East’s family firms. From jewellers to opticians, farmers to tea makers, it is clear that North East family businesses are thriving in all shapes and sizes
Beautifully printed by Matthews - a family business www.matthews-printers.co.uk
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48 EXPERTS
WHAT WE COULD LEARN FROM FIFA a masterclass in governance BE CAREFUL WHAT YOU’RE READING what’s private and what’s not HEARTS AND MINDS the importance of engaging your people PROTECTING YOUR BRAND after all, it’s your name above the door MORE THAN JUST A DONATION what is corporate social responsibility? DOING IT FOR THE KIDS exploring the assumptive nature of family firms
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CONTRIBUT0RS
Ten bitesize thoughts when tackling business debtors
1. Amalia Brightley-Gillott, Editor-
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Storey, Editorial Assistant 4. Charlie
Recommended reading from our family business champions
75 THIS WAY UP
Focusing on the next generation of young family business entreprenuers
in-Chief 2. Anita Brightley-Hodges, Managing Director 3. Annabelle Mullins, Pimlico Plumbers 5. Chris Bailey, NG Bailey 6. Donna Ingleby, Rollits LLP 7. Susan Anderson, Family Business Place 8. Andi Murch, Nucleus IP 9. Veronica Heaven, The Heaven Company 10. Sally Ashford, Charles Russell Speechlys 11. Simon Webley, Institute of Business Ethics 12. Judy Bell MBE, Shepherds Purse Cheese 13. Dom Chester, LongReach
62 PROSPERITY THE GENERATION GAP traditionalists, baby boomers and millennials EXPLORING PATAGONIA what could you do in ten days? CYBER SECURITY how to protect yourself if the worst happens
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editor’s letter
“A vital role in the economy is played by family businesses who employ more than 11.9 million people”
DAVID CAMERON PRAISES THE BULLISH GROWTH OF THE NATIONS FAMILY BUSINESSES Rebecca Burn-Callandar of The Telegraph recently commented that David Cameron praised the ‘vital role in the economy; played by family business, which employ more than 11.9 million people.’ In the build up to the Family Business Place Red Ribbon Awards, I’ve had the privilege of meeting the owners of some of the UK’s most fantastic, unusual and entrepreneurial family enterprises. In addition many have succeeded for generations. That doesn’t happen by chance or by magic! Every family business has been founded on great values and a determination to succeed; bringing employment to the local area as well as exporting and flying the British flag overseas. The market for ‘British made’ goods is growing as developing countries recognise the value of fantastic quality brands. Take Walkers Shortbread, Boodles, Fortnum & Mason, Clive Christian Perfume, Bremont Watches,
Morgan Cars, Sun Mark, Westons Cider and JCB to name but a few. Travelling the length and breadth of the UK to meet with family business owners has reinforced my belief that as a sector, we are very much still the unsung heroes and hidden gems of the UK economy. I see it as my personal mission in life to discover the entrepreneurs, promote their fantastic products and services and continue to raise awareness in government and the regions. In these extraordinary economic times, family businesses are in it for the long game. Corporate shenanigans have lost the trust of the general public - now is the time for family run enterprises to shine. Having launched our Family Business Place Membership, we have established a community that can connect with each other and access the wisdom and trusted advice we have scoured the country to bring to the party. Whatever you need to
help your business thrive; we’ve got it or know a man who can! We have lots to look forward to this year with more regional events and round table discussions around a variety of topics including the Brexit debate, selling the family firm, next generation board room know how and our young entrepreneurs peer to peer group This Way Up. So sign up and tell us how we can continue to be really useful. We are open for business - are you? Enjoy the summer Best Wishes
AMALIA BRIGHTLEY-GILLOTT, EDITOR-IN-CHIEF
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Anita Brightley-Hodges discusses
Anita Brightley-Hodges, Family Business Place Specialism Family Business Advisor Profile Anita helps family businesses overcome the issues and challenges they face around succession and next generation integration into the business.
familybusinessplace.com
same from our children and assume that they are either a ‘chip off the old block’ or disappointed if they can’t or won’t reach the heady heights of becoming next in line to lead the family business.
the bond between child, parent,
Everyone is different
family and business
The important insight is that the autocratic, single minded, focused entrepreneur has a style not necessarily suited to the more team led, consensual approach of the next generation. In addition, values change with each generation. The trick is not to assume that everyone is like you! And with the inevitability of succession, exit or dare I say it, death! We need to listen to each other and understand each other’s
In my experience of working with families who are in business together, the parent child connection of the formative years can fail to develop into the true adult to adult relationship needed to run a successful business. As parents our job is to nurture, develop and protect our children. We want to see them thrive equally, whether as gifted and bright young people or having to give that added boost to their less able siblings. That’s what’s great about families, everyone understands and helps each other with love and best intentions 24/7.
Pioneers and risk takers On the other hand the survival and success of a business is based around meritocracy. Skills, knowledge, experience, innovation and ambition are the hallmarks of exciting firms with motivated employees. Weaker members of the team are sidelined and eventually leave the organisation for less challenging jobs. And there lies the rub in tarring our children with the same brush. As founding entrepreneurs, we are pioneers, risk takers, passionate and determined individuals. But we are in danger of expecting the
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The parent-child connection of the formative years can fail to develop into a true adult-toadult relationship needed to run a successful business
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e
Assumption is the mother of all...
aspirations for both family and work. The most important factor is keeping the family relationships intact. Nothing is worth the upset and rifts that can form because of misunderstandings and assumptions. It’s not easy to begin the conversation about the future with our adult children, our hopes of them joining the family business may be dashed. But listening to them will always lead to a stronger and longer lasting respect and love for each other.
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Employment and foreign workers ...It’s got nothing to do with immigration! Regular Generation pundit Charlie Mullins OBE from Pimlico Plumbers says clamping down on immigration will not solve the problem of unemployment in Britain For years in the United Kingdom we have taken advantage of the remnants of our former Empire to continue to play the imperial masters when it comes to getting people to fill job vacancies that, for one reason or another, we cannot fill with our own citizens. Whether it was GPs from the sub-continent, train conductors from the West Indies, Aussie teachers, nurses or more recently
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topic today. But no amount of fiddling with immigration policy is going to stop this whilst job vacancies are not being filled. And while having a couple of million people unemployed may seem to some a reason to clamp down on immigration, stopping immigrants coming won’t upskill a nation and solve unemployment overnight. In fact it’s likely to handicap the economy and
I know that once people have skills and a job then life becomes much more enjoyable and fulfilling, and horizons rise
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construction industry workers from central and eastern Europe. Basically if we couldn’t fill the job at home we bribed a foreigner to come and bail us out – Truth is, over many years we’ve become a nation of highly skilled headhunters. Don’t get me wrong, it’s a system that has served us well, and is responsible for 21st century British cities being some of the most cosmopolitan centres of population on the planet. And who can blame the private and public sectors for looking at an acute problem and making the decision to employ the most readily available, qualified staff. It’s what I do, and I’d wager it’s what any sane business person would do when faced with a deficit of skilled manpower. Of course migrants from different countries and cultures, coming to the UK in search of work and a better life is a hot
so increase the number of unemployed. I think this is what’s called a vicious cycle, but the good news is that the reverse is also true! There are two things we can do to make the immigration debate disappear, the first being to adjust the welfare system so that it serves those in genuine need. This is no easy task as the government is finding out, since years of ingrained welfare dependency is a fierce adversary, and one that requires drastic and sometimes seemingly harsh measures to break. The second which I thought would be a common sense solution, but like I always say – common sense, it ain’t that common. In conjunction with breaking welfare dependence we need to utilise the non-productive people we’re carrying within the economy. Meaning, train them to do the jobs that are attracting immigrants to the UK.
And by training this available labour pool, which currently is in excess of 2 million souls, we will: 1. Cut the welfare bill 2. Begin to break decades of welfare dependence 3. Increase the production potential of the economy, and 4. Make the issue of immigration moot I am of course a huge proponent of the apprenticeship as being an extremely important way to upskill vast numbers
of people, but any means that brings people back into the economy is what’s required. Because for me as an entrepreneur there is nothing more frustrating than seeing resources lying about and costing you money at the same time. And when the resources in question are human resources it’s doubly frustrating because I know that once people have skills and a job then life becomes much more enjoyable and fulfilling, and horizons rise. www.pimlicoplumbers.com
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SNAPSHOT
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SHOULD BRITAIN STAY IN OR LEAVE THE EU? On 23 June 2016 the UK will hold an in-or-out referendum on whether the British population want to leave or remain in the European Union.
Currently 51.4% of British goods exports go to the EU whereas EU goods exports to Britain is 16%.
2 3 june However leaving the EU might affect the free movement of workers with the EU and this could have a knock on effect to the ‘limited talent supply.’
In 2015 the UK government paid £13bn to the EU Budget and the EU spending on the UK totalled £4.5bn. HM Treasury European Finances 2015
International Monetary Fund
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Made up of 28 nations, the UK has been part of the group since 1973 and there are arguments for both sides.
The two main campaigns are ‘Vote Leave’ and ‘Britain Stronger in Europe’ If we leave Europe UK GDP could be -2.2% lower in worst case scenario rather than +1.6% better off in best case scenario. Open Europe Report
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TM
National Family Business Conference 2015 Growth & Technology On 30 October 2015 the UK’s business leaders and entreprenuers came together at London’s Royal Institution of Great Britain for the 7th National Family Business Conference. The theme of the day was ‘Growth & Technology’ and we explored how family firms can keep up with the latest innovations in technology, web and social media. Headline speakers included; CPJ Field and Co, NG Bailey, Clive Christian and Clinton Devon Estates. We look forward to this year’s event on 4 November 2016.
Anita Brightley-Hodges, MD of Family Business Place welcomes guests to the 7th National Conference.
Claire Aylward explains the importance of philanthropy in a family enterprise.
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Paul Sawbridge’s talks about selling a 75% stake of his family business to an employee ownership trust.
John Varley talks about joining the family-owned 700 year old Clinton Devon Estates.
Sisters Helen and Lisa Tse MBE are the brainchild behind Sweet Mandarin, an awardwinning Chinese restaurant in Manchester. They are the third generation of women restaurateurs in their family.
Victoria Christian of Clive Christian opens the conference by stating investment can be a shot in the arm.
Amalia Brightley-Gillott of Family Business Place gives an insight on how to engage your next generation.
Sunny Ahuja from Sun Mark shares his secrets to 30% growth year or year and five Queens Awards for Enterprise.
To watch the video visitGENERATION www.tinyurl.com/jnmwbzg AUTUMN/WINTER 2014 13
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The Gin Tin team From a horse box to mobile bar, The Gin Tin is the brainchild of John Shanks and daughter Anna from London, who teamed up with a family friend to reinvent their ten-year-old horse box into a cute original bar and are now travelling the country selling bespoke delicious cocktails. “We had often spoken about starting a business together and, aside from our love of gin, this was born from a desire to try something completely different to what we do in our day jobs,” commented Anna. The team worked for eight
weeks on the project, keeping many of the original features. The horse box bar made its debut July 2015 and is now available to hire for weddings, parties and corporate events. The Gin Tin offers a bespoke bar as well as delicious gin drinks, spirits and cocktails. “I hope we have managed to create a unique bar that can offer the perfect experience for our customers whatever the occasion. We’ve had a great response from suppliers and fellow traders, everyone has been incredibly supportive,” said Anna. www.gintinevents.co.uk
Selling vodka to the Russians Family firm the Chase Distillery based in Hereford has signed a distribution deal with a Russian outfit to distribute Russia’s national drink back to the Motherland. Whilst travelling around the USA William Chase stumbled across a small distillery making potato vodka and the idea for Chase Vodka was created. William was already farming potatoes, so founded Chase Vodka in 2008. According to Pavel Busygin, chairman of Russian Rusalca, which owns VINO&Co, “You might think that selling a vodka from the UK to Russia is like selling sand to the Arabs, but Chase vodka is a very interesting concept – of a single estate vodka – which is quite
Special iApps success Inspired by the difficulty they had finding appropriate apps for their disabled son, four years ago Beverly and Colin Dean founded Special iApps. The husband and wife team both come from an IT background and set about devising their own apps to engage and stimulate young people with disabilities and learning difficulties after finding there was nothing to help teach their son. Mrs Dean said: “The whole business stemmed from when we received a grant for William to have an iPad, and while he was amazed by it, there was very little to hold his attention. “From speaking to other mums in my position, I realised there was a real lack of resources for children like William.
different and attracts attention.” The Chase Distillery currently exports its spirits to 35 countries and now Russia will be added to this after the company has agreed a limited distribution deal to supply high-end bars, wine and spirit shops nationwide. Chase Marmalade Vodka, distilled using the English preserve, has also been a surprise hit. “I thought it would make an amazing story,” admitted James Chase, son of distillery founder William Chase, who also launched the Tyrell’s crisp brand. William Chase commented “There are lots of English people working there who want a taste of home. We are making 10,000 bottles a week.” www.chasedistillery.co.uk
For the love of pie
“We had no idea about apps or iPads, so started reading books about how to create apps and it went from there.” Only months after their first app launched, Special Words, the company was retailing around the world helped by charted accountants Leathers LLP. Today the Durham based firm have 10 apps available exporting worldwide and exports
accounting for 70% of sales. “We have received requests from places as far afield as Brazil and the United States from people asking if we can do a version in their language, and the feedback we get from around the world from parents saying how much our apps have benefited their children is truly remarkable. We are just so thrilled.” www.specialiapps.org
Family firm Stephens Bakery based in Dunfermline, Scotland were praised for serving the “best pies around” by it’s oldest customer, 106-year-old James Crombie who said it was one of the secrets to his long happy life. James has been going to the local bakers for more than 90 of his 106 years and credited his longevity to a nip of brandy, the pies and some regular exercise. The family bakery heard his testimonial and gave him a birthday baking bonanza and a bottle of his favourite tipple. www.steakbridie.com
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Your passion is our business We believe better relationships make for better business. That’s why our Relationship Managers work hard to get closer to what’s important to you and your business.
Business Banking To find out more contact
Gordon Blackwood Relationship Manager – Commercial & Agriculture on: 07802 293 862
gordon.blackwood@cybg.com | ybonline.co.uk/business
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The Paper Bag Baron of Spitalfields Market 500 years of meaty history
Spitalfields market has been a permanent fixture in London for hundreds of years but there are not many businesses which have stood the test of time with it. Paper Bag Baron of Spitalfields is the oldest family business still trading but faces extinction with the higher cost of rent bearing down on it. Paul Gardner who runs the family business has been confronted with unrealistic rent increases which have threatened to close this amazing shop, but this historic business is a true model of ethical business. Accounts from the 19th century can still be found in the shop, which were written by Paul’s great-grandfather, when the trade was servicing scales for all the traders in the fruit and vegetable market. But the turn of the twentieth century saw a change and each of the successive Mr Gardners found that customers began to expect all their purchases in paper bags, and so dealing in bags became the new trade. As you walk into the shop
an old glass sign reads “Paper & Polythene Bag Merchant” with a variety of different coloured bags hanging on strings like bunting around the shop. Most of the shop’s customers are the stall holders and small businessmen and women of East London, many of whom have been coming to the shop for more than twenty years. Now a fourth generation trader, Paul has no real business plan and is only guided by his beliefs about other people and how he wants to live in the world. “I have never advertised” says Paul, “If I earned five hundred pounds a week, I could give an extra two hundred and fifty towards the rent but at two hundred and fifty pounds a week, the cupboard is bare.” Paul now has to renegotiate his rent so that he is not solely working just to pay off the rent. By sending Paul more business and recognition, we can try and help him thrive.
www.spitalfieldslife. com/2013/05/14/paul-gardner-paper-bag-baron
Not many businesses can say they have survived for 500 years let alone lived through wars, floods and even the plague, but for R J Balson butchers based in Dorset this is their incredible history. The family firm which has been passed down through 26 generations is now owned by Richard Balson. Founded when Henry VIII was on the throne in 1515, now half a millennium later the shop is still making delicious sausages and bacon for the locals. “Most of the people who come in; we’ve served their parents before them, and their grandparents before that” says Richard. Over the last 500 years the business has seen Civil War, World Wars, fires, the Black Death and yet the shop remains as much a part of the community. Current owner Richard Balson 58 said: “One of the reasons we’re still in business is that we’ve kept it small.The temptation is to add another
shop or two, but you can only really keep an eye on one shop at any one time. People come in and they know they will get a friendly, personal service.” The rich history even extends to their secret family recipes which they have been selling since Tudor times and include their pork sausage and faggots. With their most popular product being sausages, they sell 20 different varieties in the shop. They are Britain’s oldest family business. What an achievement. Here’s to the next 5 decades, 500 years young! www.rjbalson.co.uk
A game of happiness The family-owned British games and puzzles company since 1919, Gibsons, is teaming up with a series of London libraries, including Croydon, Harrow, Hounslow and Ealing to create its very own ‘puzzle club’ as part of its Piecing Together the Community social initiative. The puzzle club, which is designed to combat loneliness in and around London, is aiming to bring more local people together, through their love of traditional puzzles and games. Michael Gibson, Chairman of Gibsons commented on the initiative: “Everyone is familiar with completing a puzzle, so what better reason to come together and meet new people
rather than sitting at home alone. “Puzzles and games are a great ice-breaker and create conversation between people, which naturally brings them closer together. On top of the physical benefits of exercising the memory and moving the joints in the arms and hands, puzzles and games have a great social benefit too, which we are celebrating through the Piecing Together the Community social initiative.” www.gibsonsgames.co.uk
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Cooking up a storm With people becoming more conscious of what they should and shouldn’t be eating, superfoods, which promise a healthy alternative, have grown in popularity. Husband and wife duo Dan and Paula have joined the global trend founding Elements of Life. Set up in 2010 they offer hand-made, award winning raw chocolate products packed full of goodness. “We just started to make kits and having never done product development or production it was different for us, but it has been growing from then ever since,” stated Dan.
The family behind London’s blue plaques If you wander around London you have probably seen ceramic blue plaques dotted around stating where historical and cultural figures have lived, worked and had significant moments in their lives. These handmade plaques have been created by the same family for over 30 years. Some which include Clement Atlee, Virginia Woolf, Sir Alfred Hitchcock, John Lennon and Georgette Heyer. The blue plaque scheme has been raising awareness for nearly 150 years. Husband and wife Frank and Sue alongside son Justin are the only makers of the blue plaques. The team have worked from their Cornwall home since taking over from the
Raw chocolate differs from commercial chocolate and is made from cacao beans. Dan commented: “It is a healthier alternative and option to normal chocolate as it is packed of nutrients and it is one of the highest sources of magnesium which is often what people are lacking.” www.elementsforlife.co.uk
previous plaquemaker who died from illness in 1984. After being given the basic recipe for the clay base, the pair have continued to produce the plaques with the same level of precision and care. “We may have done 304 plaques officially, but that’s not counting the ones that have for whatever reason gone wrong,” states Frank. “The real number is rather more than that.” Although minimal in design, they are the work of craftsmanship and dedication and require far more work than may appear. As the blue plaque scheme nears its 150th anniversary in 2016, the family prepares to fire the latest commemorative plaque in the kiln – for Heyer. It will be the Ashworths’ 204th plaque for the scheme, and Frank, now in his eighties, shows no sign of slowing down. www.london-plaques.com
Gift wrapping the world A brother and sister team from West Yorkshire have joined forces and seem to have it all wrapped up with their gift wrapping business. Dom said: “The first idea came when we heard an advert on the radio about personalised cards and I said “‘why does no-one make personalised wrapping paper?’ We were very surprised that no-one else was doing it. There are so many personalised cards around but nobody doing wrap, so we couldn’t work out whether it was just a bad idea.” Dom and Geri offer personalised gift-wrap tags and cards. The personalised wrapping paper allows customers to choose
a design, upload their own photos and order customer-made gift-wrap and matching card. Helped by their parents Dom runs the marketing and social media side, with Geri using her drawing skills to create the company’s original cartoon characters. With the digital age and the reports of smartphones overtaking laptops as the UK’s top device for internet access they have also invested in a new mobile website. “A few other companies are selling wrapping paper with a photo but no text. From what we can see we are definitely the only company in the world that does this” adds Dom. www.domandgeri.com
A celebration of time Following their love of antique clocks, Roy and Valerie Clement set up Coppelia Antiques Ltd around 45 years ago. Today they are joined in business by their two sons and celebrating 20 years since they set up their sister company shop Pendulum of Mayfair in London. The store holds one of the finest selections of genuine antique clocks. Son Daniel comments; “Nothing interested me more than watching and learning about clocks and from my father examining them in fine detail. This is what makes me tick I used to say. Having your own workshop at home is every child’s dream.” The company’s clocks are not only shipped around the world but restored and overhauled in-house. Daniel states: “I have watched our business grow naturally from
a small enterprise to the size it is today. We have even restored clocks for members of the Royal Family.” It seems that there has been a love for clocks in this family spanning nearly half a century. www.pendulumofmayfair.co.uk
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Saving the post Sunderland sisters are stamping the future of their firm and the community after saving a post office service. Following their parents semi-retirement, Kimberley Huitson and Natalie Cowell bought their parents shop Wilsons Convenience Store. Since taking over and getting the go ahead from the Post Office, the duo have installed a Post Office counter in-store as well as training for the family and their staff members. Natalie said: “We jumped at the chance when the Post Office approached us. We were looking to develop our retail business in another direction, so we built our case and sent off our business plan.”
The business had been at risk after their parents wanted to retire and new owners would have been charged with overhauling the firm as part of the Post Office’s modernisation programme. “We were extremely nervous and we’ve put in a lot of work. There’s been a lot to learn and both of us have children and are very family-orientated, but the business is running seven days a week.” “We felt very strongly about taking the post office on. It’s nice to be part of the community and I think the post office adds a lot of value to it, it’s a good feeling and it’s important that we’ve kept that.” Added Natalie. www.wilsonssupershop.co.uk
If pigs could fly Cider brand Orchard Pig proves it’s flying ahead of competitors with a new delivery service. This service uses a flying Gloucester Old Spot pig to drop cider to UK customers and in true British style, is making the delivery service innovative and fun. The team wanted to express themselves in a humorous and playful manner. Andrew Quinlan, founder of Orchard Pig commented: “Orchard Pig has gone from strength to strength over the past three years and some people said it was impossible to make a hobby into a business. Well, we made the impossible possible and now have used the delivery service to make pigs fly – because why not? By creating a delivery service we’re proud of we want to show that Orchard Pig is
capable of doing anything the big companies do, without taking it too seriously.” Orchard Pig is on a mission to prove that anything is possible – including a pig drone delivery service. The pig made some test flights in 2015 and it is hoped that a 2016 summer cider delivery service isn’t too far away. www.orchardpig.co.uk
More than just wood Many businesses may not invest in people with a criminal record, a history of addiction, low skill levels or long term unemployed. Growth Rings, on the other hand, is motivated by precisely those challenges. The company was established very deliberately to tackle difficult social issues around employment. Growth Rings is the culmination of a lifetime devoted to wood and a 4th generation family business Community Interest Company, founded to create beautifully crafted quality wooden products while providing training and employment opportunities. Growth Rings “social purpose” is to provide an opportunity for people who have been unemployed for long periods, ex-offenders, the homeless and ex-substance abusers to learn skills and to find work. They set up as a Community Interest Company as this
model is designed to provide an effective legal form for enterprises which aim to provide benefit to the community or to trade with a “social purpose,” rather than to make a profit. CICs are a relatively new type of company established by the Companies (Audit, Investigations and Community Enterprise) Act 2004 and regulated by The Community Interest Company Regulations 2005. By selling products Growth Rings generates income that enables it to employ its trainees. The aim is to become a selffinancing successful business. With the long-term aim being to expand the business concept to other businesses in the area so that it can provide a wider range of products and opportunities for trainees. Some of Growth Rings’ existing artisanal partners will also create a range of opportunities for Growth Rings’ beneficiaries. www.growthrings.net
If you have an exciting piece of family business news just give us a call and let us know. We could feature you in the next issue of Generation and on familybusinessplace.com Contact us by email: press@familybusinessplace.com or telephone: 01732 220 120
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Northern Family Business Conference 2015 Succession or Sale? On 19 May 2015, family business leaders from the North of the UK gathered at Tennants Auctioneers for the debut Northern Family Business Conference. ‘Succession or Sale?’ is something every family-owned business will have to address eventually.
Sir Ken Morrison CBE shared his story of transforming Morrisons from one store to the UK’s 4th largest supermarket.
The conference offered an opportunity to meet others who have faced the same challenge, learn from the obstacles they had to overcome and explore the options available.
Anita Brightley-Hodges, MD of Family Business Place talks about the support available to enterprising families.
Our Guest Speakers gave valuable insights into how they’ve grown and developed some of Britain’s most successful businesses. From breweries to cheesemakers, the North is rich with vibrant and entrepreneurial firms.
Tennants’ state of the art auction house, restaurant and sensory garden are now visitor attractions.
Rodney Tennant, Chairman of Tennants Auctioneers welcomes guests to his fourth generation state of the art auction house.
Anita Brightley-Hodges talks with Paul Theakston of Black Sheep Brewery. Paul’s original family business was taken over by Scottish & Newcastle Breweries but Paul declined a role and instead founded his own brewery.
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Judy Bell MBE of Shepherds Purse Cheeses shares what life is like after succession to the next generation.
David Dickson talks about the complexities and challenges of multi-generational family firms like Shepherd Group.
Amalia Brightley-Gillott is joined by Jim and Emma Keeling who ran a session on preparing a business for a management buyout. Often a daunting process, Corbett Keeling are passionate about supporting business leaders through the sale process.
Isobel Schofield shared the stage with her MD Andrew Lane and talked about bringing in non-family management.
Deb Oxley CEO of Employee Ownership Association explores how it can be a great alternative to a trade sale.
Steve Parfett’s business is now fully employee-owned. He talks about the impact of making this transition.
Helen Thomas, MD of Westons Cider has been on a journey to create a charter for her family business. She gave an insight into how to get started, what’s involved and how Family Business Place can help families thinking about creating their own succession plan.
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TAKING IT TO THE
TOP Reena Hammer has forged a name as one of the beauty industry’s most influential women. Amalia Brightley-Gillott meets her to find out more.
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ike many young women, Reena appreciates great fashion, the latest beauty brands and the complete pamper experience. However, unlike most of us, she gets to indulge her passions on a daily basis as Managing Director of Urban Retreat – a luxury hair and beauty salon with a flagship on the top floor of London’s iconic Harrods. However, far from spending her days with her feet up in their Moroccan Hammam, Reena has cut her teeth under the guidance of her father, George, and has risen through the ranks of the family business. “The great thing about working alongside my Dad is that I got to experience every aspect of the business from day one. From
product packaging, e-commerce technology, PR, finance, HR and everything in between – I’ve learnt it all. It’s the only way to truly understand the business and discover potential for new opportunities.” Says Reena. With two exceptionally talented and entrepreneurial parents (her Mum Ruby is renowed makeup artist and founder of Ruby & Millie) it would be easy for Reena to feel overshadowed. In contrast, she sees her parents as great mentors who can guide her on her path to success. At a young age Reena saw first hand how her parents developed and launched their own brands into the industry. In 1993, her father negotiated the UK rights for Aveda in the UK.
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For the next three years, Reena’s summer holidays were spent in Minneapolis, USA, the home of Aveda HQ. Parallel to this Reena’s mother, Ruby Hammer was creating her cosmetics brand Ruby & Millie. In 2003 at the age of 18, Reena enrolled at Kings College University to study Latin and English Literature. Alongside her studies, Reena took on her first professional role as Project Manager for her father’s newly acquired events space, One Marylebone. A hands-on, all encompassing role, she was responsible for overseeing the refurbishment of One Marylebone into a practical model with a sustainable future. Reena’s responsibilities ranged from, liaising with contractors and builders to restore the architecture and interior design. After 3 years Reena had successfully managed the development, creating a viable destination events space.
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I would like to thank my father for building an amazing business that I, alongside our fantastic team, can grow into the future
In 2006, Reena graduated from University. At a time where the e-commerce world was booming she grasped the opportunity to join her father’s online beauty website Beautique. com, part of the Urban Retreat umbrella. Joining a team of two, Reena fully-immersed herself into the e-commerce world learning everything she could from warehouse operation to website design and building brand relationships. One aspect of Beautique. com she thrived on, was creatively thinking of new concepts for the website to gain market share. Reena identified how marketing was a key factor to driving traffic online and worked closely with brands to design concepts that would entice customers. After a year in this role, in 2007, alongside her Beautique.com responsibilities, Reena joined the Urban Retreat PR and marketing team. With previous experience in PR and an artistic flair this was a natural step forward. At this time Urban Retreat did not have an in-house creative team; Reena identified the importance to creatively unite the brand’s
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communications through marketing, campaigns and brand activities. Taking this on, she developed an in-house creative and design team and headed up the marketing team to communicate the brand as a whole. For two years Reena worked hard to elevate the brand to the next level, creating an overall style and luxury beauty hall feel. In 2010, Reena became the Creative and Marketing Director, focusing on an amalgamation of creative design, e-commerce and marketing. In this role she excelled in building brand relationships, engaging them with Urban Retreat and also bringing new brands on board. In line with the company’s growth in 2011 Beautique.com was rebranded to The Urban Retreat Beautique. Reena’s biggest challenge to date has been managing the multimillion pound refurbishment of their salon at Harrods. She spearheaded significant changes including new beauty treatment rooms, a new salon and a new café, not to mention constructing a large, waterproofed tanked Hammam spa which opened to customers in 2015. Reena’s ambitions for the future of the business don’t look set to slow down any time soon. At the start of this year she was appointed Managing Director and succeeds her Dad who will remain as Chairman. He will continue to be engaged in all aspects of the business – “Reena has worked alongside me in the business for over 10 years,” says George. “She has gained the support and respect of our staff, client base and suppliers, and has proved to be an invaluable asset to our business. I am both delighted and proud to be able to announce her as the Managing Director of our company.” www.urbanretreat.co.uk
Reena relishes the challenges and opportunities which lie ahead... “I would like to thank my father for building an amazing business that I, alongside our fantastic team, can grow into the future. I use him as a sounding board because he has an incredible amount of experience but he trusts that I’ll make the right decisions for the company, and for us as family. I am honoured and very proud to lead and represent The Urban Retreat Group.”
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INSPIRING
CHANGE CPJ Field is the UK’s oldest funeral directors. Amalia Brightley-Gillott meets the next generation, Jeremy and Charlie Field who are changing the way things are done.
J ▲ Jeremy Field, is Joint Managing Director with his brother Charlie
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eremy Field, and his brother Charlie are not your stereotypical funeral directors. As the 10th generation of Fields in this industry, you would imagine them to be carrying a huge burden of responsibility and history. Instead they come with a refreshing passion to innovate and revolutionise the funeral sector whilst keeping their unwaivering commitment to customers and colleagues. If you trace the Field family back in time, Jeremy and Charlie’s forefathers weren’t always funeral directors. In fact, back in 1690 the concept didn’t exist. When somebody died, it was usually the village elders who took responsibility of taking care of them and the Fields were carpenters who provided the wooden boards to carry them on. This led to them becoming more involved in funerals and in turn, setting up their own small funeral business. By the 19th century the business was flourishing and their great grandfather bought several small firms. They became society funeral directors and would go on to manage the funerals of Queen Victoria and the Duke of Wellington. Fast forward to the 1950s and, with the decline of religion amongst society, Charlie and Jeremy’s grandfather saw an opportunity for more cremations offering a more cost-effective option than the church. He went on to design over a quarter of all crematoria in the UK at the time. In turn, his son pioneered the pre-paid
funeral plan making it more affordable and accessible for everyone. As with his forefathers, he believed that to have a successful business you need to break down barriers and take away the taboos associated with funerals. Today, Jeremy and Charlie are leading their own revolution and have radically overhauled their way of arranging funerals to focus on the deceased and their families. They want to bring compassion back to the hardest day of people’s lives. It’s taken two years of research but they’ve now implemented a new way of working. “We’re very lucky that we don’t feel encumbered or burdened by history. If you look back through history the legacy of our family is about being dynamic, innovative and pioneering. The one pressure we do face is to make sure the business stays light on its toes and can react to the feedback from our customers and colleagues,” says Jeremy.
Reinventing the brand
Despite being the 10th generation in a long line of funeral directors, neither Jeremy or Charlie ever intended to join their father’s business and both forged their own careers in the city. In 1994 there was a hostile takeover of the company which floated on the stock exchange. It lost its identity as a family business and so Jeremy, Charlie and their sister Emily bought back half of the business without their father’s knowledge and didn’t present it to him until the transition was almost complete. Jeremy began working with his father and soon became Managing Director, a role which he has held for over ten years now. Charlie’s entry into the company was slightly different “My father had already tried to recruit me twice but I loved working in PR and advertising. However the city became a turbulent place and
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I started looking for a new challenge. We had a very timely family dinner and my father asked me again to think about joining the funeral business. I took on a business development role but never intended to train as an actual funeral director. I saw my position as one which would ask questions and challenge the way things were done.” Charlie rebranded the business and brought the family element back into their marketing. His experience of managing people in the army also gave him the skills to implement a formal management structure and communicate with their branches and colleagues around the country. Their aim was to professionalise the small, local businesses under the CPJ Field brand whilst maintaining local customers and loyalty. As with many growing companies, CPJ Field’s biggest challenge over the next 10 years will be to attract and recruit good people. “We look at people from all walks of life, not necessarily just those in the funeral industry. There is a natural stigma attached
to what we do so it’s crucial that we convey the jobs are about people, management skills, communication etc. We can provide excellent training and a great working environment where they can engage with us as a family. This encourages sustainability of quality standards and customer service.” Says Jeremy. The last couple of years have been crucial for CPJ Field and has seen big changes. Charlie and Jeremy have had some difficult conversations with their father around succession and letting go but for the sake of the company they know it’s important to be honest and transparent and tackle issues outside their comfort zone. “Taking on the family business comes with much responsibility. But if you can make an impact and leave the business in a better condition than when you inherited it, you’ve done a good job. It’s not like a large corporate - you must be prepared to get your hands dirty and realise that there’s not always a clear definition of roles – at the end of the day the buck stops with you when your name is above the door,” ends Charlie.
▲ (l-r) Jeremy, father Colin, mother Christine, Charlie and sister Emily.
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GETTING THE JOB DONE James Reed of recruitment giant Reed talks to Amalia Brightley-Gillott about following in the footsteps of his father and growing Reed Recruitment into the UK’s number one job site.
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ames’ father, Sir Alec Reed CBE founded his recruitment business in Hounslow in 1960. Today the company has more than 3,000 employees across 130 locations worldwide. Despite being floated on the stock exchange in the 1970s, Reed is now firmly back in family hands and James hopes to keep it that way for many generations to come.
about selling Reed because there was nobody to take over the helm. One day he came home and announced he was advertising it in the Sunday Times that weekend. I had to make a decision and decide if I wanted to take on the family business or lose it. Here we are today!
Were you always going to join the family business?
Yes my father is a big character with loads of energy and ideas who had become a very successful entrepreneur in his own right. I was genuinely worried that I would make a mess of the business, or our relationship .... or both. We’d always got on really well and I didn’t want to lose that. We were coming out of a recession when I joined and the business really took off. In 1994 I became Operations Director and now, 22 years later, I’m still here as the Chairman.
From a young age I remember going into the office and visiting the shops with my father. As I grew up I decided to go to business school in America and it hadn’t really occurred to me to join the business - in fact my father didn’t mention it either. I really wanted to do my own thing but as my father approached 60 he started talking
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Was it hard to follow in the footsteps of such a successful man?
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When your name is above the door you have to work harder than anyone else, otherwise people think you’re just there for the ride
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We’ve experienced life as a publicly-traded company and it didn’t fit well with our values and ethos
▲ James Reed and the Reed brand have become synonymous with the recruitment industry
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Was it important for you to attend business school in America?
Yes, I would always advise people to go and do something on your own first because it gives you confidence in your own abilities when it comes to joining the family firm. When your name is above the door you have to work harder than anyone else otherwise people think you’re just there for the ride. Gaining experience and education elsewhere first means you can make sure that taking on the business is really what you want to do. Don’t ever think it’s the easy option, because it’s most definitely not!
What are the most challenging things about being a family-owned business?
My father and I have never had problems with our relationship or letting business issues get in the way. I know many people have their family connections tested to the limit when they work in such close proximity with family members, but luckily we’ve always been very honest with each other and resolved any disagreements. For us, the biggest challenge will be remaining an independent, privately-owned company. We’ve experienced life as a publicly-traded company and it didn’t fit well with our values and ethos
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so I hope to keep it in the family for as long as I can. My eldest daughter is 23 and she seems interested in what we do, so that’s a good start.
Tell us about what it’s like to become a public company?
My father floated the company in the early 1970s but often says it was his greatest mistake. Partly because the culture of a publicly-traded company is so different to the entrepreneurial environment of a family one. Plus perhaps he thought he gave it away too early when it could have become much more valuable over time. But it’s one of those hard decisions that entrepreneurs sometimes have to make.
What have been your proudest moments?
Without doubt it has to be seeing my father receive his Knighthood in 2011 - a culmination of his incredible contribution to the world of business but also recognition for his charitable work. It was also Reed’s 50th year anniversary which was a huge achievement for us to celebrate as a team.
What drives you?
I always want to make sure we do a great job and grow in a positive direction. I’ve also got my eye on expansion into other parts of the world alongside our office in Korea so this keeps me motivated to succeed. Another key part of what we do is ‘giving back’ - when my father sold another business ‘Medicare’, the profits went into starting the Reed Foundation which now owns 18% of our company shares. It’s a legacy we’re all very proud of. We also have another company, Reed in Partnership, which helps people on benefits get back into work. To date we have helped 140,000 people - that brings real reward and satisfaction.
as the relationship changed between H you and your father?
Yes, but for the better. I’ve found that working together has made us closer although it could easily have done the opposite. Even now, we see each other every week. In fact, I probably see him more than most people would at my age which is a fantastic way to be as a family. We have absolute trust in each other.
A family business in recruitment is quite unusual?
It’s a very difficult market and there aren’t many independent companies, let alone family
ones. But it makes a huge difference to our clients who know they can pick up the phone and speak to me as well as our employees who feel looked after and appreciated. Some people might say it’s nepotism but if you do a good job, then what’s the problem? That’s another reason you have to work even harder as the next generation.
Heading into the future, what are your ambitions?
Believe it or not I think the internet is still in it’s infancy and in the next 20-30 years we’ll see massive changes. So much has already changed from the day we launched the first online recruitment website and it’s only going to get bigger. I’d also like to see us expand around the world and grow our business in other markets.
Does this come with its own challenges? The business world is very unpredictable at the moment and we’re in a fast-moving market. You never know what’s around the corner so it’s important to stay agile and adaptable - it will test your mettle and you need to be prepared to ride the storm. New technologies mean you can be here one day and gone the next, just look at Addison Lee who were thriving for a long time but then Uber burst on the scene.
▲ Both James and his father Alec have written books about their experiences in recruitment
It’s often hard for the founder to let go of the reins, so how has your father coped?
He still comes in two days a week and acts as an ambassador; visiting the offices and making sure the staff know we’re here if they need us. He’s also extremely passionate about his philanthropy, especially The Big Give which is a charity fundraising website. I once read that businesses who keep the founder around are more successful than those who don’t so I’m happy to have him here! When people ask him what he does, he says ‘I just hang around.’
What’s your advice for others growing their family business?
As a family you’ve got to be together and stay close because there will be things that pull you in different directions. Over the years some things will go well and other times will be tough. It gets harder when families become very extended but if you have a solid core unit and trust each other it will be ok. Let’s just say we’ve had our fair share of difficult moments, as a business and a family, but they haven’t thrown me out yet! Unity is strength.
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Celebrating the shining stars of British Family Business
WE’RE GOING TO
WEMBLEY 15 JULY 2016
BOOK YOUR TICKETS NOW
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Red Ribbon Awards ©
5 July 2015, Shakesperes Globe, London On the 5 July 2015, over 300 of the UK’s finest family-run businesses came together at London’s Shakepeare’s Globe. It was a spectacular night celebrating all that’s unique and special about Britian’s family firms - the beating heart of the UK economy. 11 businesses were crowned National Winners and over £31,000 was raised for some incredible charities.
To watch the video visit www.tinyurl.com/j7v88c8
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North East England’s finest
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Robinson’s Pet Store A Historical Tail
Berwick Shellfish Company The Best Fish Around
Ringtons Tea A Hundred Year Old Brew
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Halls of Heddon Blooming Marvellous
Benfield Motor Group Zooming into the Future
Tin Pony Riding Success
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Sharp & Son Jewellers The Jewel of Queen Street
Timlin Optometrics In the Blink of an Eye
Brockleby Living off the Fat
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Banks Group Earth, Wind and Fire
Yorvale The Ice-Cream Couple
Lawrence M Barry & Co Recycle, Repair, Reuse
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Harrison Spinks A Sumptuous Sleep
York Handmade Building a Home
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North East England’s finest
Lawyers are from Mars, family businesses are from Venus Families in the North East can find themselves on a different planet to their legal and professional advisors, unless their family ethos, chemistry or
North East England Factfile Population: 2.597 million (2011) GDP: £45 billion Interesting facts It is the powerful Kingdom of Northumbria including Tyneside’s Angel of the North which is made from 200 tonnes of steel and is the height of two double decker buses, also famous for Pan Haggerty and the legendary Saveloy Dip.
intentions are understood and respected. Take this case study: a lawyer sent a business family key papers about inheritance, but weeks went by, and no-one came to sign them. He eventually discovered what was really going on: apparently close family members had not lived together for years, did not get on, and had totally different aspirations for businesses and wealth. STEP hosts a number of events on the family–advisor relationship, and stresses how families are different from non-family corporates. Make sure your lawyer or accountant asks the right questions to find out what actually drives your business. We have heard families complain of failures to: nderstand their long term •U ambitions and how that drives the business • L ook at training for the next generation and prepare for the older generation retiring • I dentify the different drivers within the family. Who is focused on the family, who on jobs, and who on the long term success of the business? • F acilitate between the business management, who may be nonfamily, and family owners outside the business nderstand the long-dead founder, •U or absent in-laws and partners can exert an influence
Despite the large amount of expertise in the North East, not every lawyer or accountant can do this. So look for a practitioner who understands family issues or can call on someone who can. Business families are threedimensional combinations of business, family and ownership, and any advisor has to work on all three. When working with a legal or financial professional it’s worth digging deep to be certain that they understand what your family really needs. David Harvey Chief Executive of STEP
•U nderstand the importance of family governance structures, eg family councils
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North East England’s finest
A Hundred Year Old Brew Following a £250 investment Samuel Smith OBE began selling tea from a horse and cart in 1907.
A Historical (Wagging) Tail In 86 years of business, Robinson’s Pet Store has seen it all. Former butcher Edwin Robinson founded the pet shop in 1929, little did he know it would become the country’s oldest, family-run pet store. The store evolved from selling seed and corn to selling livestock and animal supplies. The family then opened a further store in 1955 which was the first
self-service pet suppliers in Europe. The firm is now run by Nick Robinson, grandson of Edwin, alongside his wife, son and stepson. Through the years the store has stocked all kinds of animals from small, domestic ones to exotic creatures. If someone ordered it they would stock it; bears, reptiles, monkeys, pumas and even a visit from a small elephant. With the crackdown on captivity, the world has evolved and the business now just specialises in products for pets, stating their long history in animal care has lead them to believe that animals should no longer be sold in shops. With the fourth generation being involved in the business let’s hope there will be a new generation to take over the reins of this historical firm. www.robinsonspetstore.com
The Best Fish Around In 1969 after hearing the same old story about trying to get good quality seafood, George Anderson Flannigan seized the opportunity and founded the Berwick Shellfish Company. By spreading the word and churning up interest in the business it has since grown into one of the premier suppliers in Europe. Now 45 years later the third generation has expanded with the digital age, with its online sales quadrupling since September 2014. They were also selected to be part of the Google Growth Engine, which helps smaller businesses with global marketing and distribution to reach out and become
Only a year later Sam needed more assistants and two horses. The company fell upon hard times during WW1 with rationing being enforced as well as twelve employees of the firm being sent to war, luckily all returning home. The company expanded rapidly through the next couple of decades buying a motorcar in the 20s and a new factory in the 30s. But in 1943 200 vans were taken off the road and hundreds of employees called up to fight. By 1949 the founder had passed away and his sons took on the business. Now 108 years from the humble horse and cart in Newcastle upon Tyne the company has 35 offices across the country and continue to deliver door-to-door to 260,000 customers. Colin and Simon Smith are the fourth generation of Smith’s to run the business which now produces enough tea each week to fill 60 million cups. Fifth generation member Sarah Holmes is also taking a role, turning the company’s former postroom into a ‘tea heritage room’ filled with vintage tea packaging and paraphernalia. To keep up with the constant demand for hot drinks the tea expert company has set its focus more on the demanding coffee boom. Whilst tea will remain the prime focus for this family firm the time is ripe to capitalise on coffee appetite and develop their beverage department even further. www.ringtons.co.uk
multinational. The company has since began working out ways to transport fresh shellfish to areas away from the coast. The business now offers 30 different products and are constantly involved with the community supplying their delicious seafood to markets and fetes all around the North East and Scottish Borders. www.berwickshellfish.com
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North East England’s finest
Blooming marvellous Plants have a truly personal touch with growers spending time pruning and making them perfect, the same applies to this traditional family business which has thrived over nearly a century. In 1921 William Nicholson Hall began travelling with chrysanthemums to market from his nursery at Heddon. 100 years later, Halls of Heddon, is tendered by the third generation of the
family David Hall and his cousin Maxine and has blossomed into a world renowned nursery full of incredible plants. All the stock is grown in fields, one in Heddon on the Wall and another at Ovington,
although this green-fingered group mainly specialise in Dahlias and Chrysanthemums. From a seedling to marketing a final plant can take around three to five years as the stock grows. They have won awards such as a Gold Medal and Best Trade Stand at Gateshead Flower Show, showing that this nearly century old family business have the strong roots to create beautiful plants every single year. www.hallsofheddon.co.uk
Riding success Cycling is not just a hobby in this family, it’s a complete way of life.
Zooming into the future From modest beginnings this independent family business is now one of the largest private motor retailers in the UK. Benfield Motor Group, based in Newcastle, was founded in 1957 by John Squires Senior and developed through the years by the present chairman John Squires Junior. The company now employs 1500 people as well as generating it’s biggest-ever
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recruitment drive this year with the creation of 44 jobs, wanting to attract new and enthusiastic talent in the motor industry. There seems to be no stopping this incredible firm, recently appearing on the Sunday Times Top Track 100 for the first time in their history, as well as being crowned ‘Dealer group of the Year’ in the UK’s Motor Trader Industry Awards 2015. In 2013 third generation family member, Mark Squires, was re-appointed to the Chief Executive role assuming the dayto-day running and control to bring back the full family factor. This family business is definitely flying the flag for the North East’s privately-owned businesses! www.drivebenfield.com
Husband and wife team Miles and Zoe setup Tin Pony alongside brother Andy. Based in County Durham the firm use locally sourced ethical materials and a love of riding to create cycle t-shirts. The company logo represents the speed, spirit and elegance of cycling, which the team states draws us all to ride. The idea behind this exciting new business came when they realised no one was making shirts which reflect the strength and passion that cyclists have. So now Tiny Pony create specially designed t-shirts with the company aim being to create fresh exciting cycle journey clothing inspired by bikers with a Northern style splashed all over it. www.tinpony.co.uk
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North East England’s finest
Earth, wind and fire
Recycle, repair, reuse
Developing the elements may
Following the advent of the
seem a beyond worldly task but for
affluent and fast moving fashion of
family firm Banks Group, this is just
the eighties, husband and wife duo
an everyday job.
Lawrence and Joy Barry, noticed people were no longer throwing
Based in Durham, Harry Banks OBE founded the Banks Group at Tow Lane, to carry on the business of surface coal mining. The group then added Banks Property and subsequently Banks Renewable, covering a whole range of elements. The firm employs about 400 people in the region and are proud of their family owned roots and contribution to the economy. They can boast one of Northumberland’s largest private-sector employers and although they are constantly growing they continue with their long-standing ‘development with care’ approach. Following the Conservative Party plans to cut all subsidy support for onshore wind, the firm announced in June its move towards the solar energy market. They recently submitted plans to develop a local site from a wind farm into a solar array, which has received overwhelming support from local residents. This firm is definitely moving with the times but always doing it with a positive impact to the community, a real family firm. www.banksgroup.co.uk
out clothes because they were tatty but because they had simply gone out of style. Inspired by his dad’s firm which recycled docking ropes from London’s dockyard, the couple decided to make use of these clothes and in 1985 founded Lawrence M Barry & Co (LMB). Since then the business has mushroomed from a three-person team to now employing over 170 staff across four sites. The business is environmentally conscious collecting and sorting clothes for reuse. In the 90s
the firm put recycling banks on public streets, paying the local authority per tonnage and therefore putting money back into the community. They setup a subsidiary company called the Britannia Wiper Company to recycle clothes that couldn’t be used, by cutting them up into industrial wiping cloths. The company is constantly evolving with new initiatives the latest of which is encouraging the younger generation to recycle and reuse. In 20 years they have come a long way and they don’t seem to be slowing up anytime soon. www.lmb.co.uk
The ice-cream couple Although Ian Buxton was not born into a family of farmers, he always loved the countryside and rural area. Alongside his wife Lesley, they began managing a herd of dairy cattle and from there began to pursue their passion for ice cream and began creating their own. In 1989 the pair founded Yorvale making rich and creamery dairy ice cream then diversifying into real fruit sorbets and natural frozen yogurt. The result of the farm’s dairy cows grazing on lush Yorkshire meadows and only producing milk for Yorvale means the cows are stress free and produce really creamy milk. Using natural ingredients the family make flavours
such as Banoffee, Turkish Delight and Mince Pie. The company has now become a premium brand with their tubs being sold in local and national stores. Although the firm have grown so much they maintain their farming roots keeping their own herd of cows which husband Ian still milks daily. www.yorvale.co.uk
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North East England’s finest
The jewel of queen street When an opportunity to buy an old jewellery business in Queen Street Arcade came up, John and Margaret Sharp just couldn’t resist. Over 30 years later the arcade might have changed a lot, but family business Sharp & Son Jewellers still remains as prominent as ever. Giving a diamond service since 1953, the original shop had a homely feel and an iconic domed glass roof. With the turn of the century a new look was given to the shop and today it is run by second generation Robert Sharp and wife Shona. With its elaborate collections of rare Victorian and Edwardian pieces it has become the place to find unusual antique jewellery, bespoke items and high-end superior jewellery. Sourcing and making the finest jewellery for over 30 years means they have the talent and specialism to create magnificent pieces. The firm has grown into a well-respected family business in the community who love having “a proper old-fashioned” local jewellers. www.sharps-jewellers.co.uk
In the blink of an eye Celebrating 30 years in business last December was quite the achievement for Hartlepool family firm Timlin Optometrists. Founders Maggie and Mick Timlin met while studying optometry at university and then married in 1983. The following year they founded Timlin Optometrists, bringing a local and community touch to eye care. Starting the company from scratch
they quickly found success and now have an eye-watering customer base of around 30,000. The couple also have three children – Helen, Chris and the youngest Richard who is following in his parent’s footsteps taking up a career in optometry, maybe to join the family firm one day. The family say the years have passed in the blink of an eye, in that time welcoming customers and helping client’s from babies and toddlers right up to a lady who is 103 years old! www.timlins.co.uk
Living off the fat Family business, Brockleby, is a recycling specialist doing its bit to combat climate change using cooking oil and fatty acids. The company was founded by Paul Brocklesby in 1997 and is now run by his son Robert processing thousands of tonnes a year of food waste, extracting the oils and fats from the waste and processing it into ‘refined’ oil which can then be used for the UK’s biodiesel industry. The company works with major UK retailers and food manufacturers to help recycle oil. By recycling the oil Brocklesby stops the food waste from being dumped in landfill sites or causing environmental problems such as water pollution, sewer
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blockages and flooding. With society becoming more environmental friendly and aware of its impact the firm is growing and helping businesses achieve their environmental goals. www.brocklesby.org
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North East England’s finest
A sumptuous sleep The average person spends 26 years of their life tucked up in a cosy bed sleeping, and one bed maker has been providing a goodnight’s sleep since 1840. For 176 years Harrison Spinks has been revolutionising the mattress industry with it’s founder Arthur Spink saying he never made a bed that he would not sleep on himself. To make a beautiful bed at Harrison Spinks you have to combine both heritage and innovation. Mattresses do not start life in a factory but on a farm in the North where the company rear a flock of sheep so they can use their quality pure-grade wool to create natural fillings. They grow their own natural fibres on the farm, draw their own wire
and hand-craft their own mattresses. They are still the only bed manufacturer in the world with its own farm and recently acquired a 56 acre wood so they can source the timber closer to the business reducing their carbon footprint. Recognised for their commitment to improving their processes by Her Majesty Queen Elizabeth II they were presented with two Queen’s Awards for Enterprise in Innovation and
Sustainable Development. Just like Arthur Spink years ago it’s current Managing Director Simon Spinks is constantly evolving the company, his wife refers to him as the “spring geek,” but Simon’s obsession has pushed Harrison Spinks into a world leader and now he is hoping to revolutionise the sofa industry. In this business it is clear that innovation never sleeps. www.harrisonspinks.co.uk
the new Managing Director. 2015 saw the company have one of its’ most successful years turning over £2.5m an increase of 14 per cent on the previous year. Their bespoke look and
unique appeal means the company has kept thriving giving houses a rustic old look even though the bricks are brand new. www.yorkhandmade.co.uk
Building a home The Armitage family have been working in the brick industry since 1824 helping families and friends create their perfect home. The firm produces traditional bricks made from local mudstone clay which is found in the Vale of York and has been used in the area for hundreds of years. The production process is what sets this business apart with the bricks being handmade giving each individual product great character, texture and colour. York Handmade was founded by David Armitage in 1988 with his son Guy Armitage, the sixth generation of the Armitage family to work in the industry, recently being appointed as
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experts
Comparing a structured family Chris Bailey, NG Bailey Specialism Engineering, Construction and Services Profile Chris Bailey is the Chair of the Family Council for his own family business, playing a pivotal role in the transition of the business through generations . www.ngbailey.co.uk
business to the international governing body of football might seem an unlikely link, but... Unlike executive management, corporate governance decisions, good or bad, do not generally appear in the next set of quarterly or annual results. Like the planning of a highly successful event, if done well corporate governance may well be almost invisible. Unfortunately poor corporate governance can also be invisible. Or at least invisible for a while. Think Tesco. For so long a shining light of Britain’s then “Big Four” supermarkets. That was until it all started to unravel. Recent revelations into their accounting practices give a whole new meaning to the phrase “Every Little Helps”. Helps who exactly? The point here being that whilst recent earnings may not have been good, what has been highlighted within Tesco is an acceptance, or culture even of aggressive accounting and exploitation of suppliers. The fact that these behaviours have been allowed to grow and flourish even is highly symptomatic of poor governance.
What can we learn from FIFA? However whilst Tesco, the Horsemeat Scandal, LIBOR and Phone Hacking offer depressingly excellent examples of governance failings, it is FIFA that has much that we in the family business world can learn from. And conveniently they offer such a high profile example of poor governance that their errors may be easy for us to learn from. So what could FIFA possibly have got wrong? After all Mr. Blatter has only just been explaining to the BBC that he “was not guilty of corruption and that any corruption that may have occurred was
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A major barrier to future success is directly linked to the finding that 90% of UK family businesses operate with no formal family governance structures in place
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Governance a masterclass from FIFA?
purely down to the individuals that worked for him within FIFA”, world football’s Governing body. That statement speaks volumes both about Mr. Blatter, about FIFA and about the understanding there of corporate governance. Were Mr. Blatter to have a quick peruse of the UK Corporate Governance Code or the Companies Act he would discover that the Directors have ultimate responsibility for that organization. That means as Directors they are responsible for what it stands for and how it interacts with all of its stakeholders. Whilst they can delegate authority, the Directors are by law ultimately responsible
to all of those stakeholders. Now unless I’m really missing something, doesn’t taking the title of President suggest some sort of leadership role within the organization?
An agreed protocol So what are these corporate governance failings, and why are they relevant to Family Business and businesses in general? So, as more than one wise family business consultant suggested a good place to start family business governance is the formation of an agreed protocol. In fact as one such consultant suggested, that within every family business there is already a protocol. It may or may not be written or agreed but there is always an understanding of “this is how we do things around here”. Judging by Mr. Blatter’s recent comments to the BBC, at best FIFA’s protocol is “if we don’t know, it’s not our problem,” hardly sounds like a sure footing for good corporate governance and sustained success. His other glaringly obvious failing when it comes to good corporate governance, which is often also a particular challenge for family businesses is of course
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experts
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Protocols, Succession Planning and Constitutions are three simple tools that can help facilitate good corporate governance within family firms.
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succession planning. The lines of “there’s no one else ready” or “there’s no one else suitable” sound familiar. Well if that’s the case, whose fault is that? Again good governance means ensuring a sustained success for the organisation, and sustained success requires strong succession planning. It is of course up to the leaders to those potential successors. So FIFA, enduring their 17th year of Blatter presidency clearly aren’t dedicating too much time to planning succession. The adoption of a Constitution can be a great way to head off such clinging on to power and set out best practice
durations for the roles of governance. If FIFA have such a document, it would appear not to have seen the light of day for some time, or be entirely at the president’s discretion Protocols, Succession Planning and Constitutions are just three simple tools
that can help facilitate good corporate governance within family firms. However, there is much that the family business sector has to offer its often larger and supposedly more professional commercial enterprises. Is it any coincidence that today’s UK Corporate Governance Code is based on the initial report by Sir Adrian Cadbury, or that the President of the CBI, Paul Drechsler CBE has worked extensively for some of the UK’s leading family businesses. Often under-represented and under-recognised, the family business sector has much to offer on the subject of good corporate governance.
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Be careful what you read monitoring an employee’s internet use Donna Ingleby warns family business owners to get their ducks in a row and put policies in employee contracts. Donna Ingleby, Rollits LLP Specialism Employment Law Profile Donna is an experienced employment lawyer with excpetional advocacy skills and a pragmatic approach to work place conflicts. www.rollits.com
Employers reading recent headlines concerning a case decided in the European Court could be forgiven for thinking that they have an absolute right to monitor employees work related email accounts. Employers should not rely on what they have to read. The decision which attracted extensive and misleading media headlines was the case of Barbulescu v Romania decided in The European Court of Human Rights (ECHR). The applicant, Mr Barbulescu was a Romanian national who was employed by a private company from 2004 to 2007 as an engineer in charge of sales. At the request of his employer, he had created a Yahoo Messenger account to reply to client enquiries. The Company’s internal policies and procedures contains an express prohibitation against employees using company equipment (computers and telephones) for personal use. The employer discovered that the Yahoo
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Article 8 states that everyone has a right to respect for his private and family life, his home and his correspondence
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Messenger account had been used by Mr Barbulescu to send and recieve personal messages about this health and sex life in breach of company procedures. Mr Barbulescu argued that the Romanian Court should have excluded all evidence of his personal communication upon the basis that it infringes Article 8 of the European Convention and the right to respect for private life. The ECHR considered that a number of issues including the fact that
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Mr Barbulescu had commited a disciplinary offence by using his professional account during working hours on the company computer for personal messages and in breach of company regulations. The ECHR took account of the fact that the employer had used the employee’s account with a view to considering professional communications and had in that way discovered the personal messages. The ECHR held that Article 8, which states that everyone has a right of respect for his private and family life, his home and his correspondence was engaged but that the employer had not acted in violation of Article 8.
A case for human rights In this matter the employer’s monitoring was not unreasonable and the evidence relied upon, had been confirmed to the extent of the personal messages and not the content of them or the recipients of them. The employer had acted in a proportionate way and in accordance with its own procedures. The European Court of Human Rights recognised that it was not unreasonable for an employer to seek to verify that employees were undertaking their professional tasks during working hours. In general terms, the European Court of Human Rights case law recognises that individuals have a reasonable expectation to a ‘private life’ which extends to personal telephone calls from work and e-mails sent from business premises, however, the case of Mr Barbulescu is distinguished because the company’s internal policies and procedures expressly prohibited the use of company equipment for personal use and the employer’s monitoring was reasonable.
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ctronic Introduce (or review) an ele ing lud (inc icy pol ns communicatio . or) nit mo to ht the rig
Ensure new worker s ar to the policy on indu e introduced ction, and that existing employee s are reminded of the terms of it on a regular basis.
d Ensure managers understan d ine tra are and icy the pol to where necessary in relation s. que monitoring techni
The case does underline the importance of having robust policies and procedures particularly in relation to computer and telephone use. Here, however, personal use was strictly forbidden whereas most employers in the UK will adopt policies and procedures which allow for reasonable personal use. In addition UK legislation, including the Data Protection Act 1998 (DPA) regulates an employer’s powers to monitor an employee’s personal data. The Data Protection Act and existing case law derived from the European Court of Human Rights both impose an obligation on the employer to advise
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ures up to Keep all policies and proced trained are ers date, and ensure manag ry and lina cip dis to n generally in relatio s. ure dismissal proced
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Illustrations by Olympia Brightley-Hodges
experts
A reasonable employer is required to consider the reason for carrying out monitoring
employees that personal data may be monitored. The ideal place for this provision is an internal policy or contact of employment. Neither this provision or the Barbulescu decision entitles employers to routinely monitor employees private communications although, unhelpfully the media frenzy surrounding the Barbulescu decision has suggested this is the case.
Instead, a reasonable employer is required to consider the reason for carrying out monitoring, whether that reason is sufficient to justify an intrusion into an employee’s private life and whether the means of monitoring chosen are proportionate to meet that need. The Employment Practices Code contains guidance on monitoring at work and good practice. The Code embodies the themes identified above and also the reasonable requirements that should be expected of an employer both in internal policies and procedures and in the sensitive subject of monitoring employees at work.
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experts
Based on trust, integrity and two way commitment, Susan Anderson Susan Anderson, Family Business Place Specialism HR generalist with specific interests in staff development and training Profile Susan has 20 years experience in HR, working with some of the UK’s largest retailers and family businesses. familybusinessplace.com
describes how employee engagement can be nurtured, measured and increase productivity and well-being, but can also be lost or thrown away. HR, Human Resources, Personnel Manager, Employee Relations, People Development, we’ve had a lot of names over the years (many not as polite as the one’s I’ve just mentioned). As legislation, culture and peoples’ tolerances have changed so have business needs, and therefore so did the job title. HR (lets stick with that for ease) has many umbrellas, we keep employers within the confines of the law, recruit, oversee health and safety procedures, manage salary budgets and performance. We are the gate-keepers of the ‘rule book’ and ensure employees are protected, looked after, made a fuss of when they achieve great results for your business, and usually have a box of tissues at the ready – just in case.
So have you got it right? Phew, with someone looking after all those aspects of your business you would think you must have a pretty engaged workforce, yes? Well maybe yes, maybe it’s not quite as simple as that. Let me tell you more. Colleague engagement is something that family businesses like to think they’re good at. They often think that because they ‘look after’ their employees well, and that everyone seems happy enough they have an engaged workforce, and maybe so, however I want to look at the differences between a fully engaged workforce and a happy one. According to the CIPD (Chartered Institute of Personnel and Development) colleague engagement is being positively
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present during the performance of work by willingly contributing intellectual effort, experiencing positive emotions and meaningful connections to others”. To Forbes it is “ the emotional commitment the employee has to the organisation and its goals.” So what does all that mean; after all we’re all supposed to ‘leave our emotions at the door’ aren’t we? Personally I think when a family business wants to look at how it engages it’s workforce, the first step is to take a look in the mirror, and tell yourself the truth about how you behave, speak and lead in your organisation. Do you know your employees as people? (quickly think about three personal things you know about each of them), do you recruit for personality? Are you honest with them about both the business and their personal
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Personally I think when an organisation wants to look at how it engages it’s workforce, the first step is to take a look in the mirror, and tell yourself the truth about how you behave, speak and lead in your organisation
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Staff engagement the key to hearts and minds
performance, good and not so good? Have you set clear rules and guidelines everyone can work towards, and be measured against? Do you reward good performance, and say thank you every day? Do you think that your employees are the heart of your business, and without that heartbeat, your business can’t be successful? Do you live and breathe these values EVERY single day? If you answered yes to the above questions (honestly) then congratulations you probably do have engaged staff. If you answered no; then alas perhaps not. So what’s the answer? Why is it not as simple as having scooters for your employees to whizz up and down the corridors, or pin ball machines in the free canteen, outings to the park to play rounders, or free cakes on a Friday? That makes people happy right? And happiness is an emotion, so surely that’s it, you’ve cracked it?
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experts
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Share your goals, successes, failures and help them understand, ask for honest feedback about ‘what it’s like to work here’ and LISTEN to the responses
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Engagement, however, is more than happy, it’s the people who work late without being asked; because they care, the people who understand what their role is, and how they make a difference, those who share your values, and connect with your company purpose, those who think about making cost savings where they can, because they understand the business. There may be times they are indeed far from happy, business is tough, but they’re still engaged, still committed, and still caring. People generally want to get better at what they do. Does your company
recognise that need and enable and support them in doing something about it? Share your goals, successes, failures and help them understand. Ask for honest feedback about ‘what it’s like to work here’ and truly LISTEN to the responses.
Then be honest about what you can realistically change. Manage expectations then let them help you manage your business. You also need to accept that you can’t win them all, and no matter what you do some people won’t be right for your business, and it won’t always work out. Learn from that and move on. Sometimes tough decisions need to be made. Finally it’s been said thousands of times before, but if it’s good enough for Richard Branson…..”Do what you love, and love what you do”. It really will bring successes all round.
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experts
How valuable can a brand be? Andi Murch informs us of the value we may give away without realising it, especially when our name is above the door. Andi Murch, Nucleus IP Specialism Trade Mark Attorney Profile Andi advises on national and international protection of brands, and has worked with clients such as; Bremont, The Co-op and Mitchells & Butlers. www.nucleus-ip.com
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When people ask me what I do for a living and I tell them that I am a Trade Mark Attorney, this often results in a blank stare. I usually go on to explain that this involves helping people protect their brands. These days, branding is a subject that most people can relate to. What many people often fail to realise is just how valuable a brand can be. This can especially be the case if the brand is your personal name or signature, but more of that later. The question I get asked most often is why should I bother protecting my brand? A Trade Mark registration is an item of property. You can sell it, licence
others to use it, even raise finance against it. The goodwill attaching to a business’ name is often the most important asset the business owns. It is the brand that customers come to associate with the products and services you provide. If you lose the right to trade under your own name, this can have a severe impact on the business. Of course, there are ways of trying to redress the balance, by taking the appropriate action through the Courts, but this is considerably more expensive and stressful than securing your rights via a Trade Mark registration. If using an Attorney, you can protect your brand via registration for less than £600, plus VAT. The registration covers the entire United Kingdom and will give you the exclusive right to use that mark in relation to whichever goods or services you have specified for a period of ten years. The whole process, assuming no third party objections, takes three to six months to complete. There are a total of 45 different classes to choose from and these
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experts
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It is the brand that customers come to associate with the products and services you provide
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can be added to the initial application at the time of filing, with costs increasing incrementally. The registration can be renewed every 10 years, in perpetuity. A word of warning. If you have not used your mark after it has been on the Register for 5 years, it becomes vulnerable to removal. That is not to say that it will be removed, but simply that your mark can be attacked by a third party. Many businesses start by trading under their own name, be it the name of the Limited company or the name of the founder. This is fine until one comes to sell the business, a consideration that often crosses the desk of a family business owner at some point during his, or her, tenure. One person who arguably fell foul of this is the fashion designer, Elizabeth
Emmanuel, probably best known as one of the designers of Lady Diana Spencer’s wedding dress. She sold her business, along with all rights, in the Elizabeth Emmanuel brand. When she subsequently sought to use her own name in relation to a second design company and filed a corresponding Trade Mark application the registration was refused. The public would in effect be deceived into believing that she still had a connection with the original business.
What’s in a name? Therefore, if you do decide to sell your family business and that business operates under, for example your family surname, considerable care needs to be taken in the wording of any transfer of rights to the new owner. The famous shoe designer, Jimmy Choo, lost the right to use his own name when he sold the company, Jimmy Choo Limited. He is still making shoes under his own name, but in order to be able to do so, he has had to take a licence from the company who acquired the rights to the
Jimmy Choo brand. For a family business, time spent giving proper consideration to these issues is very important, especially if the business is about to develop a new line or area of expertise. Should this new line have its own branding, separate and distinct from the name of the business? Whatever is ultimately decided, the wording of any contract regarding the subsequent sale of that part of the business will be absolutely critical in defining and securing the rights and interests of the parties. The contract should be as clear as possible, regarding what is and is not being sold. Any agreement should make it clear, (a) exactly what is being assigned; (b) who will retain the goodwill in the brand; (c) the extent to which, and the manner in which, party A or party B will be entitled to continue using their own name. The clearer and more detailed the provisions are, the less likelihood there will be for a dispute or the need for advice from one of those rarely heard of Trade Mark Attorneys.
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experts
Veronica Heaven discusses the impact a corporate responsibility movement could have on the local and UK economy. Veronica Heaven The Heaven Company Specialism Providing robust solutions and straightforward advice to deliver expertise and long term benefit within Integrity, Understanding, Collaboration, Positive behaviour. Profile Veronica works with family businesses helping them to define, implement and communicate Corporate Social Responsibility and sustainability strategies with commercial realism.
theheavencompany.com
* Source: IFB Research Foundation Report, December 2014
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Family businesses are becoming a hot topic and rightly so. Globally, the 500 largest family firms employ almost 21 million people and collectively generate some USD 6.5 trillion in annual sales. In the UK, it is estimated that family businesses employ around 9.4 million people accounting for some 39 per cent of private sector employment and nearly 30 per cent of the UK’s total employment. Family businesses are an incredibly important part of the UK economy. Almost 3 million strong in number, family firms generate revenues estimated to be worth around £1.1 trillion, equivalent to almost one-third of total private sector turnover.* As UK PLC seeks to strengthen its economic roots to deliver stability within the British economy, considerations about ownership structure and the role of business on society have come into sharp relief. Discussion about the need to develop a British Mittelstand (echoing Germany’s strong mid-market sector which is characterised by family oriented locally focused operators), together with calls for greater transparency, accountability and the necessity for businesses to take on broader social responsibilities have become growing messages. Post-2008, the appetite for long term sustainability has taken hold. Studies far and wide continue to highlight that CSR and sustainability issues are on the boardroom agenda. For example, according to a Global Compact-Accenture study, some 80 per cent of top CEOs view sustainability as a route to competitive advantage in their industry while PwC’s recent Global CEO Survey reveals that around 75 per cent of CEOs agree that satisfying societal needs and protecting the interests of future generations is important.
Family businesses with their ability to think beyond quarterly results and shortterm profits already have in view the desire to build sustainable long term success for future generations and this makes them well suited to apply in-depth Corporate Social Responsibility (CSR) strategies. CSR is about doing business in a responsible manner that takes a long term view, combines financial performance with working in a way that has the least impact on the planet, and enhances the wellbeing of employees, customers and the wider community.
More than just a donation Within an enlightened family business, the CR-sustainability agenda is applied progressively as a powerful business tool for training, stakeholder engagement and as a management approach to improve processes, strengthen the family brand and empower relationships with staff, customers and suppliers. For these enterprises, CR goes well beyond a simple philanthropic donation to charity.
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These gems contribute to the local economy and may earn the trust and loyalty of customers as a reward.
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Sustainability and the family business
Furthermore, local focus – a currency that has its own value - has become an increasingly attractive option for consumers in recent times. Companies anchored in their localities are able to provide continuity of local employment, empower local communities, encourage local sourcing and reflect the profile of the area where the business is based. These gems contribute to the local economy and may earn the trust and loyalty of customers as a reward. One such example is Adnams. The current Chairman is the 4th generation of the Adnams family to be involved with the business. Today, Adnams has the letters Plc after its name and it is a significantly larger business than it was back at the start in 1872. Its ownership can best be described as a hybrid: part family-owned, part listed. This financial structure benefits
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We have invested in infrastructure and facilities in a sympathetic and environmentally sensitive way
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the company and provides an excellent platform for long-term strategic thinking and investment in the future, whilst ensuring financial performance goals and appropriate governance routines are in place and adhered to.
What we can learn Adnams has become a ‘cool brand’ recognised as much for its award-winning beers and spirits as its sustainable development practices and community focus. Adnams CEO Dr Andy Wood OBE says: “Our cultural home is the beautiful coastal town of Southwold, perched on the East Coast of England. Adnams has been part of the town’s beating heart for years and as the business has grown we have invested in infrastructure and facilities in a sympathetic and environmentally sensitive way. We recognise our economic impact on the locality and want to grow this for the good of the region. Currently, we source about 25% of goods and services locally, mainly from small and medium sized enterprises (SMEs). Our strategy means that Adnams is growing a transparent, strong and resilient local supply chain and contributing significantly to the wellbeing of the region. Long-term it’s a real win-win as it follows that if the region is doing well economically, Adnams will do well.” Adnams has an established charity which distributes in excess of 1% of
company profits to small deserving causes within a 25 mile radius of its brewery and distillery. The company supports local events and festivals and has even produced a commercial beer called Wild Hop, created after the company asked locals to provide any wild hops they had growing in their gardens. While community engagement and sustainability is embedded within the Adnams model, the extent to which micro and smaller family businesses are involved in the sustainability agenda is less understood. It is an area of research that is needed says Dr Claire Seaman, Reader in Enterprise & Family Business at Queen Margaret University in Edinburgh: “Family businesses form part of the economic bedrock of economies and communities across the World and in Scotland we see a multiplicity of microand smaller family businesses that are vital to the economy. By focussing on those smaller family businesses we are developing research to support policy and practice around succession and
business support in a more general sense. Micro- and smaller family businesses local philanthropy is an under-researched area but there is evidence that both the communities and the businesses benefit. Research at Queen Margaret University in Edinburgh looks at the overlap between family, friendship and business networks and the ways in which networks benefit families in business in Scotland. The number and strength of network ties between family, business and community is a key indicator of well established businesses.”
Meeting business ambitions The longest running businesses and fastest growing products seem to have something in common; CR-sustainability values as a business imperative positioned at the heart of the brand. Applied well, CR is a way to develop a sustainable business enabling younger generations to learn within as well as outside of the business and helps family firms to meet current as well as future business ambitions. The volume and breadth of family business underscore the significance of the sector and its potential to shape how business in the UK operates in the future. Just imagine if family businesses were to lead the way using sustainability and a well thought out CR-strategy as a differentiator how amazing it could be for communities across Britain.
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Sally Ashford Charles Russell Speechlys Specialism Private wealth Profile Sally’s expertise is in advising high net worth individuals and family business owners in relation to their estate and family succesion planning. charlesrussellspeechlys.co.uk
Exploring the assumptive nature in family business versus a structured planned approach to succcesion
*Source: http://tinyurl.com/ familybusinessresearch
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I’ve been advising family owned businesses on legal issues for many years and I’m always struck that, regardless of location, sector or size of the business, the major issues which impact them tend to be the same. These largely relate to succession, management and control, as well as disagreements relating to the direction or continuation of the business. Typically, when a family business is set up, the usual policies which nonfamily owned businesses put in place (such as terms for terminating contracts, shareholder agreements and how disagreements will be dealt with) aren’t really thought about. Family members trust each other implicitly and focus on growing the business instead of corporate structures. This is all well and good until
a dispute arises, often several years down the line, at which point things can get extremely acrimonious. It’s far easier to iron out these issues and establish policies at a time when everyone is in agreement, however it’s never too late to review policies or put them in place retrospectively, pre-empting issues should they arise. At the same time it is helpful to consider areas specific to family firms - such as ‘At what point can the next generation be
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Family members often make assumptions that they all share the same vision for the business and find out too late that this is not necessarily the case
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Doing it for the kids?
involved in decision making?’, ‘How will decisions be made when the patriarch/ matriarch is no longer involved with the business?’ or ‘Can family members who are not employees or on the board have a say about the direction of the organisation?’ It’s worth taking time to discuss and agree the overall vision for the company.
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Unlike non-family owned businesses, family members often make assumptions that they all share one vision for the business and find out too late that this is not necessarily the case.
Differences of opinion Despite an aversion to giving non-family members senior leadership or strategy setting roles, and a strong desire to keep business ownership within the family, more than half of the respondents in our research* (55%) claimed that succession is a barrier to future success with the main issues impacting succession including intergenerational conflict, younger family members not wanting to join the business, and sibling rivalry. I often meet family members who disagree about the overall direction or purpose of the family business – some wanting to invest and focus on growth and innovation whilst other family members are happy to use the current business model to support a comfortable lifestyle. The frustrations range from older generations wanting to involve their offspring who aren’t interested, to second or third generations who feel they
could really open up new channels for the business but are stifled by resistance to change. These barriers can all be addressed – often with external guidance and so I was surprised that in our research* almost two thirds (62 per cent) of family business owners would be prepared to sell up owing to “difficulties handing on the business to children or relatives”, when maybe finding alternative options for the next generation to enter the business would have retained that wealth for the family and possibly given it quite a boost if incoming generations are allowed to explore new revenue streams or business ideas within the existing corporate structure.
Win Wins are always available I would urge family businesses to set up or review their family charter or constitutions and consider external guidance to help the business to thrive. Getting family members behind a shared vision is key, as is keeping younger family members engaged by allowing them a voice in the business. In today’s economy, where a job for life has all but vanished, younger generations entering the business will expect to have
more variety and say in the development of their careers. Working in the family business can offer all that and more, but career progression needs to be structured carefully and ambitions must be listened to. Whilst the next generation need to be excited about their potential career path in the family firm, the outgoing leader also needs to plan their own exit in a meaningful way. For someone who has spent the last 20, 30, or 40 years at the helm of their business, stepping back from it all, handing over the reins and embracing a new role in life can be a daunting prospect. It’s crucial that their contribution to the business, their hard work and achievements, are recognised and appreciated by the future leadership. They, too, will benefit from training and mentorship to successfully transition into an ambassador for the business and a fountain of knowledge for the next generation. There are always options for family businesses to explore to protect and grow their investment and wealth but sometimes it takes a different perspective to help them get the best outcome for everyone.
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What can you do in Ten Days? ‘My Ten Days’ is an initiative to encourage owners and managers of family businesses to kick start their Corporate and Social Responsibility strategy. By giving one employee an extra ten days paid leave in order to do something truly amazing, they can improve the lives of many in the UK and overseas. ‘My Ten Days’ allows individuals the opportunity to fundraise and volunteer for the charity of their choice without having to worry about not having enough holiday allowance and so leaves them free to make a real and fantastic contribution. Whether it be hiking up Mount Everest to fundraise or donating time to a local care home, collectively the family business community can make a huge difference. For more information visit www.mytendays.org or contact anita@mytendays.org or 01732 220120 GENERATION SPRING/SUMMER 2015
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Traditionalists, Baby Boomers, Generation X and Milennials Simon Webley explores the possible Simon Webley, Institute of Business Ethics Specialism Ethics in Business Profile Simon is Research Director at the Institute of Business Ethics and helps a range of businesses with ethics in their organisations. www.ibe.org.uk
contributions towards the ongoing generation gap. The world has changed beyond all recognition in the last fifty years. Digital technology, demographic shifts, international and globalised business – all these contribute to a gap between the expectations and ethical values of the different generations. For the family business, these differences are all the more marked, as elder family members seek successors in the younger generations, and younger family members seek to find their place in the business.
Traditionalists, Baby Boomers, Generation X, Millennials – what does business ethics mean to them? Understanding the different characteristics of the generations is fundamental in ensuring the culture of the business is founded on ethical values which will be sustained across the generations. Businesses which take ethics seriously are aware of the importance of creating an organisational culture based on shared values. Given the changing demographics of today’s workforce, the sustainable business seeks to create working environments that value generational differences and bridge the generation gap. Differences in generational perspectives and work styles can make this difficult task even more challenging, as misunderstandings and contradictions may arise. The older generation may bemoan the younger’s lack of work ethic; the younger generation are frustrated by what they perceive to be the elder’s focus on profit over people. The challenge posed by a multigenerational family business means that the main characteristics of different
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generations need to be understood in order to get the best from each age group. For example, for younger family members, culture is the sum of their interactions with other individuals and co-workers. Older family members on the other hand, are more influenced by the company’s stated values, passed on from previous generations and their beliefs about the organisation as a whole.
Six of one and half a dozen of the other It is important to understand and address generational differences and tensions and to seize the opportunities that a multigenerational workforce can offer. However, it is also important to focus on the similarities among age groups, encouraging them to work together and learn from each other. Because Millennials are networkers and familiar with new technologies, they can make good ethics ambassadors; at the same time older employees also make great ambassadors as they may have greater understanding of the business and a more established reputation for integrity. How often have you heard an older family member say something ‘un-PC’
TRADI TI ONALI ST S Traditionalists were brought up during times of economic and political uncertainty, with life experiences that included World War II. As a result, Traditionalists tend to be hard working, financially conservative and cautious. Company loyalty is generally perceived as very important and they aim at staying with the same organisation for life. They are not very risk-oriented and have great respect for authority. This tends to lead to a command and control style of leadership. Formal letters and face-to-face meeting are the preferred communication channels. This age group responds well to a focus on ethical messaging from the previous generations and founders; provide opportunities for them to share their experiences with other generations.
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Illustrations by Olympia Brightley-Hodges
or a younger member post something inappropriate on Facebook? This can be one of the reasons why there can be a gulf of understanding between the different generations. As society changes, so messages about ethics need to be updated over time so that they reflect current views on what is, or is not acceptable practice; for example on issues such as social media use, or sexual harassment or diversity. Here are some brief outlines of the differences between the generations to promote a greater understanding of the different approaches to working ethically and some ideas about how to engage the different ages with ethical messages. An open business ethics culture that reaches all the generations is a way to motivate every family member, no matter when they were born, to do the right thing and to feel valued by their company.
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The older generation may bemoan the younger’s lack of work ethic; the younger generation are frustrated by what they perceive to be the elder’s focus on profit over people
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BA BY BO O MERS
GE NE RATI ON X
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Baby Boomers were brought up in times of social and political changes and economic prosperity. Work has been a defining part of their approach to life and they tend to see the workday as at least 8 am to 5 pm, sometimes finding it difficult to maintain a good work/home balance. Their long term commitment is more to their job rather than to a specific organisation and they seek personal growth, recognition and gratification. The telephone is their preferred communication tool. This age group responds well to formal principles and systems to support ethical work practices.
This generation experienced a time of significant changes. The institution of the family changed as divorce became widespread, while the economic and political situation became more unstable. As a consequence, they developed behaviours of independence, resilience and adaptability more strongly than previous generations, but also a little cynicism and distrust towards authority. Gen X members are more ethnically diverse and they are much more segmented as an audience, being aided by the rapid expansion in cable TV channels (sometimes they are also referred to as the ‘MTV generation’ ), satellite radio and the internet. Gen X-ers may need advice, and they need to know that counsel is available on ethical issues.
Millennials have grown up in an electronics-filled and increasingly online and socially-networked world and this has had a strong impact on their approach to work. They were brought up with an ‘empowered’ parenting style, which has encouraged them to not being afraid to express their opinions and having a tendency to be self-confident. This group was also raised in a consumer economy and as such, expects to influence the terms and conditions of their job. They value a more flexible time schedule and social media plays a central role in their communication techniques.
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My Ten Days Judy Bell MBE tackles mountains, rivers, icefields, heights and glaciers to raise money to build fresh water drinking wells for communities in Uganda, Africa. Judy Bell MBE, Shepherds Purse Cheese Profile Realising that more and more people were becoming intolerant to dairy products, Judy started making Cheese from ewes’ milk and founded her award-winning business Shepherds Purse Cheese.
D Day - Fri 26 Feb
Boarding pass in hand, I waited at Gatwick with my daughter Caroline, who had driven me down from Yorkshire just to make sure I got to the pick up point safely! One by one, my fellow trekkers arrived, buzzing and energized for what would be the experience of a lifetime. All checked in, we did some last minute shopping in duty free and in time for our flight to Madrid.
www.shepherdspurse.com El Calafate - Sat 27 Feb
Having touched down in Argentina, we met up with our guide Jim, who ushered us outside into the fresh morning sunshine. 3 hours later, we boarded our connecting flight to Calafate where we were greeted by an enormous expanse of bright blue water, ‘Lake Argentina’. We were transferred to our hostel to unpack, change and settle in before regrouping for delicious beef stew, a typical Patagonian meal. Perito Moreno Glacier - Sun 28 Feb
We were collected from the hostel in El Calafate and taken to the breathtaking Perito Moreno Glacier. Passing over the arid land, ‘steppes’, we travelled to the west, toward the mountains and glaciers where the area became greener and even more beautiful. The incredible pride in the land was admirable, with a ban against
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There before us stood the third largest icefield on Earth, 30km across to the Andes and length of 400 – 500km
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hunting of wildlife and items leaving the country, “It belongs to Patagonia”, care for the environment was paramount.
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Condors, eagles, horses, cattle, wild llama and sheep were just some of the incredible wildlife that reside in Patagonia. At 200 metres deep, Lake Argentina was enormous, and is at a constant 2-5C due to the sediment in the water which arrives from the glacier as it melts, reflecting heat from the sun. We arrived at the centrepiece of the southern ice cap, Perito Moreno Glacier, which stretches over 30km and 60 metres high, brilliant white and bright blue fissures. Taking a boat along the north face of the glacier, we heard what sounded like thunder, to then realise it the was a section of the face falling into the lake. A boardwalk took us up the side of the mountain to put us level with the surface of the glacier - a large undulating meringue, good enough to eat! El Chalten, a small moutain village, appeared to be growing rapidly, with lots of chalets being built for the seasonal influx of trekkers. The sight of mountainous rocks surrounding the development was amazing and the only way out of the town was to climb. Los Huemules Nature Reserve - Mon 29 Feb
Our first base camp, Los Humules, had been designed and managed by a team of naturalists and conservationists, specializing in the protection of the
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Laguna de Los Tres - Tues 1 March
Leaving camp, we trudged through the beech forests, stopping off for lunch by a gorgeous river, then setting off to climb a challenging 1200ft up Laguna de los Tres, to absorb the views of the lakes with glaciers towering behind. We walked down to the lake, over to another smaller hill, a gorgeous rusty red, smooth texture with no loose stone or shale, but our boots seemed to grip really well, especially after the day’s 15km trek. Back at camp, our glorious cooks, Victoria and Sebastian, were busy preparing our evening meal, whilst the rest of us settled into our snug tents.
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endangered Patagonian Huemul deer. We were guided through a Nothofagus forest made up of species of trees and shrubs native to the Southern Hemisphere and typical of the region. Crossing streams and boggy ground, we arrived at the Laguna del Diablo lake, surrounded by mountains; Diablo, Neumayer, 30th anniversary, (climbers from Barralloche named the mountain as they were the first to climb it), and Devils Hill. Back at camp we assembled round the barbeque for vegetable soup, steak, salad, fried onions and peppers, accompanied by plenty of Malbec - a delicious and well deserved feast!
The current was strong and freezing, the water was up to our knees!
Laguna Torre – Wed 2 March
Feeling tired we set off early from camp taking a trail past the mother and daughter crystal clear lakes. With the trail undulating, we seemed to be covering all angles of the mountains, accompanied by lots of changing terrain and scenery. We enjoyed our lunch at Lake Torre, watching great pieces of ice which had broken off the glacier melting in the hot sunshine. It was a very treacherous 19km path back to Chalten, feeling more like 25km! A quick shower back at the chalet, we ended the night at a great bar with more Argentinian steak. Paso Del Viento - Thurs 3 March
We took the trail out of Chalten to Laguna Toro (Lake Toro) and Pliegue Tumbado. Althought steep the trail was well marked and led us clambering up through beautiful beech trees to a timberline (1000mts), to Pliegue Ridge - amazing views over the lake. Descending down the valley to Tunel River we crossed varied terrain pastures with lots of cattle (Argentinian beef on
the hoof) grazing amongst the trees. They remain in the area until later in the year when they are rounded up by the gauchos and taken down to the lower pasture. Carrying on down the valley, we reached the Toro Lake campsite. Having carried our heavy backpacks all day, we were extremely grateful to see our tents already erected and wating for us. Fitbit step count : 33,292 Laguna Torre - Fri 4 March
By the time we had walked around the lake, the zip wire, which allowed us to access the mountain, was already busy. We had a long day ahead of us, so we agreed, daringly, to walk across the river barefoot. The current was strong and freezing, the water was up to our knees, our poles were firmly gripped in our hands - but we were urged to keep moving - the photographs say it all. Onto the mountainside, we carried on up Windy Pass. After five hours we reached the top of Windy Ridge, and there before us stood the third largest icefield on Earth. 30km across to the Andes and length of approximately 400 – 500km. We were lucky the weather had been so good, warm and bright. The trek back was treacherous, with a steep drop to one side, but we took it steadily and met more guides who assured us the glacier
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El Chalten - Sat 5 March
Leaving Lake Toro, we ventured downstream via Pliegue Tumbado, through burnt forests and marsh areas. Reaching the top, we found a small glade to sit and have our lunch. The Fitz Roy Mountain, with a cloud over it, looked as if it was smoking. After a short rest we reluctantly got to our feet and trudged off down through the lush beech forest, and as we made our descent, we experienced the first and only Patagonian wind. Sail on Lago Viedma to Glacier Viedma Sun 6 March
A chance to experience walking on a glacier with crampons, metal spiked boots, we boarded the coach which took us down to Lake Viedma. I have to admit I was very nervous about wearing crampons, especially across the crevasses. Being a very popular tourist trip, a large group of French, German, American, and Argentinean trekkers joined us, with eight
guides looking after everyone. I eventually tackled the crampons and set off for the day. A quick light lunch and stroll around the town, we headed back to the chalet for a shower and rest before our last meal with Jim who had been such a fantastic guide. Packing and getting organized for our long journey home was then our priority.
for a pizza, raviolli, squid salad and the obligatory beer. I couldn’t resist buying some chocolates from “the best chocolate shop in the world” according to Louis and Victoria, the glorious chefs. Known as the Paris of South America, Buenos Aires is a wonderful city, very large, lots of traffic but lovely historical architecture and green space.
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Homebound - Tues 8 March
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was ‘good to go’. To get back to camp we had to cross the river again and this time the zip wire was free. It was a thrilling experience dangling between the mountains with the river raging 50 feet below us. Fitbit step count : 39,700
I have to admit I was very nervous about wearing crampons, especially across the crevasses
Buenos Aires - Mon 7 March
A long trip to the airport, we stopped off halfway at a cafe reputed to have been a hideout for Butch Cassidy. The landscape from Chalten to Calafate was arid, mountainous, but with lots of large rivers and lakes. We saw some wanaco, (similar to a lama), and an armadillo crossing the road - bizzare. It seemed so ironic that for the past ten days we had been surrounded by endless water sources, all the while raising money to provide safe clean drinking water for villagers in West Africa. We touched down in Buenos Aires and after a wash and brush up we went out
We set off to the airport to meet our departure flight, and after a uncomfortable 11 hour flight, we arrived in Madrid, to then hop onto our final flight to London Gatwick. Greeted by family, we said our goodbyes and I carried on my own journey back up to Yorkshire, excited to be reuinited with my family and the dogs! Trekking the Patagonian Icefields was one of the most physically and mentally challenging things I’ve ever done, but knowing the fundraising behind the trip will bring safe fresh drinking water to more communities in Uganda is incredible.
Keep yourself updated with upcoming treks, trips and activites at www.mytendays.org
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Cyber security: have you been pwned?
Dom Chester LongReach Ltd Specialism Risk and Crisis Management Profile Dom Chester leads LongReach, a consultancy supporting family business to manage reputation and operational risk, and deal effectively with crisis.
Dom Chester explores the issue of information theft and it’s potential impact on family businesses. He also provides some pointers on what to do if you are unfortunate enough to be targeted.
Ok, I confess…it’s hard keeping up with jargon these days, “pwned” being a great example. I came across the term whilst in email conversation with a colleague recently. I forget the precise context in which she used the term, but it certainly had me scratching my head for a couple of minutes. Having brought myself rapidly up to speed via the Urban Dictionary, it reminded me of a topic at the forefront of many business peoples’ minds at the moment, namely cyber security. For those not in the know, “pwned” is a slang term derived from the verb “to own”. Within the online gaming community, the phrase “you just got pwned” has a specific connotation of humiliating a beaten opponent. The term also has a wider application and can be used to mean a device (computer, server or smartphone), an application or a website has been hacked or cracked.
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Why is this of any interest to you? Well, given that family businesses more often than not trade on their reputation (which may have taken decades or more to cement), the topic of information security certainly should be of interest to this audience. The speed of social media and the breadth of information stored on the Web ensures that any sensitive data compromise has the potential to damage family and business reputations deeply and for a sustained period, often leaving a permanent mark.
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63% of the organisations surveyed experience significant attacks that test the resilience of their IT systems on a daily or weekly basis.
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www.longreach.solutions
Business strategies, partnerships, relationships, investments and profitability can all be negatively impacted when private or confidential information becomes public. There are countless recent examples of high profile information hacks and subsequent reputation damage (Ashley Madison and Carphone Warehouse offering two relatively recent case studies).
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Cyber Security Cyber Security Cyber Security Stop Cyber Security Stop Downloading
Stop Stop Stop
Recognising the threat is essential. Working out who might want to steal, access, read, copy, deny or destroy your business and personal information is the first step to developing a robust mitigation. Your business should have a plan that identifies and addresses vulnerabilities in your information security and communication processes to such threats. Considering and adapting your general level of exposure (accepting that some families and businesses may necessarily need to have a high level of exposure) with an experienced risk consultant will ensure that your attractiveness as a target of information crime is reduced to the minimum. Design, document and rehearse your cyber incident response plan – this might be as simple as agreeing the experts you intend to call in the event of a crisis. Ensuring that you have the right contact details and that they can be called upon to support you (potentially 24/7) is essential. The response plan should also consider your business’s view on extortion strategy and commenting on a breach to a wide range of stakeholders (including the media). Equally, engaging a specialist
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Should you suspect or discover an attack, immediate priorities for your business should revolve around activating your cyber incident response plan and particularly conducting an initial damage assessment
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How can you mitigate the likelihood of being pwned?
to undertake “red team” attacks (where consultants pose as criminals and simulate various attack methodologies against your infrastructure) will enable you to continually consider the validity of your threat assessment and identify further vulnerabilities in your systems. Red teaming can also be used as the direct stimulus to practise your cyber incident response plan.
How would you know if you’ve been pwned? Some cyber security experts would have us believe that most large corporations have been attacked and their systems penetrated already, at least to some degree – it is simply the case that the hackers have not yet exploited the vulnerabilities they encountered. There are various means by which you can establish whether your
personal and business data infrastructure has been compromised. Talk to a reliable service provider about regular network audits and potentially active monitoring of your personal and business email addresses.
What if you have already been pwned? A recent survey of business leaders by Accenture indicated that 63% of the organisations surveyed experience significant attacks that test the resilience of their IT systems on a daily or weekly basis. Given their complexity, some attacks take time to come to light. However, should you suspect or discover an attack, immediate priorities for your business should revolve around activating your cyber incident response plan and particularly conducting an initial damage assessment - determining what is at stake and what has been lost will help you to shape the correct response (e.g. do you need to inform your customers, employees, regulators etc.?). Concurrently, bringing on dedicated expertise in terms of crisis management specialists and cyber incident responders will certainly speed up your overall recovery and therefore actively decrease the negative impact on your business operations and reputation.
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Legal advice Legal advice for you or for you or your Business your Business
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tackling business debtors and advises on the best course of action.
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Being inflexible and failing to review terms: businesses should review their credit policies to ensure that they remain relevant and effective for their business. Businesses change, economies strengthen and weaken, and there can be differing demands on cash flow.
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Not complying with regulations: there are numerous regulations that businesses must adhere to when seeking to recover debts from consumers. In order to avoid penalties, you must ensure that your policy does not break the law.
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Failing to have a credit policy: it is vital for cash flow and ultimately the survival of your business to be able to predict when you are likely to get paid and the cost of ensuring that this happens. Without a credit policy you risk losing money, and breaching consumer protection regulations.
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Kent, looks at the ten common mistakes when
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Graeme Weir of Thackray Williams Solicitors in
Not having enough information about your debtor: before you enter into any new business relationship, you should undertake ‘due diligence’ at the outset. This means gaining knowledge about your new customer’s ability to pay as is reasonable, depending on the size of the transaction.
Ignoring the costs of debt recovery: before you embark on a campaign to recover a debt from a customer, it is vital to evaluate the costs that you will incur in doing so. It is imperative to look at the costs of the recovery measures implemented.
Failing to follow up: if you demonstrate persistence, late payers will soon learn that they cannot just ignore the debt. Decide how long you will continue to contact them until they pay, and when you will pursue formal recovery proceedings.
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Only using one means of communication: letters and emails can often be enough to get some debtors to pay, but others may require a more personal approach. Calls are an effective way of getting your debtor to provide the correct information to you.
Failing to undertake due diligence with companies: in much the same way that consumer customers’ details need to be up to date, it is important to ensure that you are contracting with the right business.
Having out-of-date customer records: out-ofdate information about your customers can lead you to assess them as a lower risk than they may be, so it is worth making sure that you keep a record of their ability and willingness to pay on each occasion so that you are not caught out later on.
Understand your customers’ payment processes: each customer will have a different procedure for paying invoices. It may require the authorisation of several individuals before payment can be made. Therefore, it is important to know the names of the people responsible for this process.
www.thackraywilliams.com
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FBP RECRUITMENT
A UNIQUE CAREERS PORTAL FOR FAMILY BUSINESSES TO FIND AND RECRUIT TALENT - We understand the importance
The home of TM family business
of finding people who share your values. We will find you like-minded individuals who really connect and understand what you are looking for, and can bring that added something above and beyond the job to help your business thrive.
HOW IT WORKS
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Upload your vacancies to your own client area. Your vacancies are advertised on multiple job boards, community sites, forums and social media. We filter the responses uploading candidates whose CVs match your requirements. We contact suitable candidates to confirm they are available and interested in your vacancy. CVs of candidates are uploaded to your client area. We send you alerts to review CVs.
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You can leave comments and our researchers will refine the search. Each campaign runs for 28 days. You arrange interviews and hire a suitable candidate/s.
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›› 12/05/2016 17:04
reviews
500 Years Behind The Block, Richard John Balson To be the 26th generation of a family business is quite a feat, and to mark the milestone of their 500 year anniversary Richard Balson, the firm’s current owner, has released this truthful journey of the butchery trade. Delving into the history of R J Balson & Son, Richard follows his own timeline and brings to life his family members and the relationships he shared, especially with his father. From plagues, fires, floods, wars and multiple recessions this firm has seen it all. It is one thing to make a quick buck but this business is all about craft, preservation and passing on a legacy over 5 centuries. Giving an insight into the world of a butcher, including tricks of the trade. This book is a must read. What may seem a simple butchers shop is now the oldest family business in Britain. How have they done it? All the answers are in here. www.rjbalson.co.uk
Bog-Standard Business, Charlie Mullins OBE A great story from young apprentice plumber to business guru and OBE. Charlie Mullins is a family business champion. He writes it like he tells it which is refreshing and provides an honest account of how he came from humble beginnings - ‘A North London street urchin’ to owning London’s biggest independent plumbing firm. A business he started from scratch now provides services to the rich and famous. It’s an honest account of hard times and torn family relationships that once led to a promising but thwarted career as a professional boxer. Charlie has seen it all and been up against the big boys, but throughout his chequered life the one man who influenced his life the most in the early years was his mentor and fellow plumber Bill Ellis. Charlie quickly sussed he could make a good living from having a trade. It has been a long hard slog, but his guiding light during the Thatcher days, coupled with his skills, cheeky boy personality and determination has made him a bit of a National Treasure! Charlie counts David Cameron, George Osborne and Boris Johnson amongst his friends. How did that happen? www.pimlicoplumbers.com
Sweet Mandarin, Helen Tse MBE Sweet Mandarin tells the story of three generations of Chinese women, spanning1930’s China to modern-day Manchester. The story is told by Helen, who honestly guides us through her families’ history. Their journey begins in a village in China, where Helen’s grandmother Lily was taken from by her mother and father in search of a more prosperous life in Hong Kong. The family changed their fortune, and built a successful business selling soy sauce. Sadly this good fortune wasn’t to last, and following the brutal murder of her father, Lily’s life was thrown into turmoil. Lily’s work took her to the UK, and perfecting her chicken curry recipe, she opened one of Manchester’s first Chinese restaurants, where her daughter Mabel worked. More tragedy was to hit the family and the business was lost. Enter the third generation Helen and her sisters Janet and Lisa who took over the reigns opening another restaurant ‘Sweet Mandarin.’ The women’s love of family and food is at the heart of this thought provoking story, yet it is through their courage and perseverance in times of hardship that you find how closely past and present are intertwined regardless of the generations. A well written and heart-felt story. Impossible to put down until the end. www.sweetmandarin.com
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FROM THE FIRST WHISTLE TO THE LAST Wembley Stadium is home to the most important games in football, from The FA Community Shield and England’s European Qualifiers to The FA Cup Final. To find out how you can guarantee your place at this year’s biggest sport and entertainment events with Club Wembley, call 0800 783 1440
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KEEPING UP HIGH SPIRITS A N E X C L U S I V E C L U B F O R Y O U N G F A M I LY B U S I N E S S E N T R E P R E N E U R S JOE & SEPH'S POPCORN EXPLOSION
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A SWEET TOOTH FOR SUCCESS
FOUR SHOTS OF TALENT
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KICK OFF
WELCOME
TO THIS WAY UP An exciting new club for young family business entrepreneurs What does it really mean to be a young entreprenuer and the struggles you might have to face going into business with your family
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he older generation discuss being young playing in the dirt, cutting their knees and forging out their careers in business with hard work and determination. But these days we are asked at a young age, what do you want to be when you grow up? I'm sure we all said astronauts, lawyers, singers but I bet none of us said we wanted to work with our families. So how did we fall into these careers? Some young entrepreneurs form a business with their family because of their innate trust with each other, where as others follow the older generation into business because they've grown up around it and want to push it even further. However we got here, we chose our own path. At our National Conference in October 2015, a panel of next generation leaders discussed how their choices led them into business with family. The generation gap is often a factor in family firms.. How can you always see eye-to-eye with someone who might have grown up in a completely different age. We are the millennials, young, vivacious, technology at our fingertips. So what's the answer?
Well, there's no easy answer or quick win. It is about appreciation and honesty. Here are the top tips from our next generation panel: - Remember that this is a business first and foremost - Be honest about the intergenerational relationship and how good or bad it is - As the previous generation, recognise when you need to listen to - or step aside for the next generation - As the next generation, recognised the contribution and experience of the previous generation Take the plunge and have the discussion about how you see the future - where could it take you? Amalia Brightley-Gillott www.familybusinessplace.com/ thiswayup
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FOUR SHOTS OF TALENT Not many family businesses are founded by 4 siblings with the youngest being only 16, but The Sibling Distillery seems to have the all elements for a winning formula.
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Ignore those who say you have to be ruthless to succeed in business, it’s all about being smart and doing what’s right for the business By going the extra mile in every part of their production, from making their own base spirit, changing the botanicals every 17 litres, to collecting the water themselves from one of the purest natural water sources in the world, it is no wonder they have been named as one of the top three gin distilleries in the country. With this winning formula these four will be enjoying the sweet taste of alcoholic success for many years to come. www.siblingdistillery.com
Understand that as a young person in business, people will attempt to catch you out or doubt your credibility
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AGE DOESN'T MATTER Family issues can always be a problem when only two family members work together but this team say they split the company into sections so that the distillery and their relationship runs smoothly. Although the four have not given each other formal job roles they each take care of a different element. Digby, 16 is the youngest member taking on the manual side of things, everything from making the base spirit to bottling in-house. Cicely, 19 runs the production side, planning the events and PR, with Clarice, 21 taking care of the bureaucracy that comes with the drinks industry. The oldest Felix, 23 deals with the sales and organising exporting the British gin.
Running your own company becomes pretty all-encompassing, but these four have found working together easier because they are related. Digby states “Of course there are disputes, but at the end of it all we know that we all have the same goals in mind so they tend to be productive. Looking to the future this group seem set to take the drinks industry by storm and with quality at the heart of this family firm, they won’t be compromising the luxury element of their brand by growing it at an unmanageable rate. Their advice to other young entrepreneurs is to ignore those who say you have to be ruthless to succeed in business; it’s all about being smart and doing what’s right for the business. “Understand that as a young person in business people will attempt to catch you out or doubt your credibility so make sure that everything you do is fantastic,” says Digby.
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rowing up around parents who worked for themselves and with family, the brothers and sisters knew they always wanted to start their own business. Having found a love for the drinks industry, in November 2013 Felix, Clarice, Cicely and Digby four siblings based in Gloucestershire founded The Sibling Distillery. Renting space from Battledown Brewery, the family brewery began to build up their tools and knowledge. Taking advice from a local mentor and family member the business started to grow and in June 2014 they launched their high quality, luxury gin onto the drinks market.
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RISING STARS
A POPCORN EXPLOSION It’s five years since Joseph Soper woke up one morning in 2010 and decided that he wanted to create amazing tasting popcorn.
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longside his wife and son he co-founded Joe & Seph’s and exploded onto the popcorn world with their gourmet cooking and flavours. Forget just simply sweet and salty, this family have created more than 40 tempting flavours from Strawberry Cheesecake to Margarita, Mince Pie to Cheese on Toast. Adam Soper reflects on the start of the business “When we first launched we only had sweet and salted, no other flavours. I guess we were sceptical and nervous about what the reaction would be. For me I was a young entrepreneur with no clue about running the business within the food industry." Starting up your own business can be hard and even harder with your parents, but Adam Soper knew it was something he always wanted to do. From a young age he was
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I have a great team behind me and to make any business a success that is what you really need
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keen to do something where he reaped the rewards himself and a job he was really passionate about. Jumping at the opportunity he co-founded the business with his parents and now works as the Sales and Marketing Director. It took six months to adjust to working with his parents and for them to start treating him as an equal on their level in business. When he began he sought advice from other young entrepreneurs in the food business.
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BE INSPIRED When thinking about starting your own business, I would say do it! Ask around, use your network of people, go to events and ask for advice. Be inspired." Although the company has doubled each year the family know that it is the gourmet element which sets their popcorn apart and means that they are constantly improving the production process, as it is all still handmade. But it is this artisan taste, which makes the popcorn popular. It is clearly working as five years on the company has won
é Dad Joe, mum Jackie and Adam
24 Great Taste Awards from the Guild of Fine Food. “The secret to our success? I guess it has to be having the best tasting popcorn,” jokes Adam, “No I’m kidding, we have such a wonderful family culture here and I have a great team behind me and to make any business a success that is what you really need.” www.joeandsephs.co.uk
Joe & Seph’s è deliciously flavoured popcorns
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RISING STARS
THE EPITOME OF FUN Following numerous trips shopping in London, to the hairdressers and shoe shops with their children, Sophie Mirman and Richard Ross came to realise that there weren’t any child-friendly stores around.
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hopping was an event for parents as they were the ones spending the money with not much thought for the little ones who would be with them and they were buying for. In 1990 the couple founded Trotters a unique shop to create a wonderful experience for both parents and children. Catering from babies to 10 year-olds the shop is the epitome of fun for children from the moment you walk in to the moment you walk out.
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Need new shoes? Why not sit on a train whilst getting your feet measured. Need a haircut? Watch the fish swim past in a giant fish tank whilst getting your bob trimmed.
é Natasha with Sockshop and Tierack founder parents, Sophie Mirman and Richard Ross.
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Now the firm is 25 years old, and their eldest daughter Natasha Ross tells us of her personal journey which led her back into the family business. Imagining grand visions of becoming the Next Coco Chanel, Natasha always wanted a glamorous life in fashion and trained to become a qualified chartered accountant. Sampling her first taste of the fashion industry she worked as the Financial Controller at Stylistpick, an online fashion boutique. After a year at Stylistpick she began
looking for a new position “I lined up some interviews, when my parents took me out for dinner. All very normal, until they dropped into conversation their Office Manager had handed in her notice and wondered if I might be interested in joining them as Financial Controller.” For next generations making the decision to join the family firm can be a daunting task and for Natasha it was hard to see if this path would be the best choice for her and her relationship with her parents. “I couldn’t bear the thought of our relationship turning sour if I wasn’t right for the job. I spent the next month, working out my notice, with a giant knot in my stomach. ”Knowing she may have committed to a job for life, Natasha was of course hesitant but when she walked through the office door on her first day she knew she had made the right choice. It’s not always easy but by having a shared vision and common goal with the family, you can both work towards making the business better.
MAKING THE RIGHT CHOICE The importance of getting experience working elsewhere was key for Natasha and is the advice she would give to other next generations considering joining the family firm. “Firstly, it will help you make an informed decision about joining and secondly, if you do join, you’ll have knowledge and experience to share. Now working alongside her parents and maybe her younger siblings one day Natasha states her secret to success is simple; “Believe in yourself!” www.trotters.com
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RISING STARS
A TRIPLE SCOOP The Sadler family started making ice cream in their Cheshire kitchen for their friends and family back in 1986.
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arents Chris and Cheryl Sadler diversified their dairy farm into a successful ice cream venture Snugburys, and have since been delighting mouths with their artisan ice cream and wacky flavours such as Death by Chocolate, Damson and Sloe Gin, and Baby Fig. Now the second generation, sisters Hannah, Kitty and Cleo, are hoping to put their own stamp on the ice cream world after taking over the reins following their parent's retirement. Each will oversee different parts of the business, Kitty heading up sales, Hannah looking after the day-to-day running and Cleo head of production. Together with 15 members of staff the trio will be churning out more than 400,000
tonnes of ice cream from their factory. Over the years the firm has scooped up many awards across the North West and Wales and even been rated as one of the ‘Best Ice Cream Shops’ in the world as voted by mass media gurus at Conde Nast in New
York. Taking on such a renowned business might seem a big task but the girls who have grown up on the farm and have always had a love and enthusiasm for the business, say they have big plans for the future of the business. www.snugburys.co.uk
THE DICKINSON DIET Many young girls might hope for a new handbag or flashy heels for their birthday but for Charleh Dickinson’s 19th birthday her father bought her a company instead, Designed2eat.
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é Charleh Dickinson and her father, Peter
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eing a former elite athlete when she was younger, and discovering she was intolerant to dairy and gluten meant that Charleh always had a keen interest in nutrition and diet. In 2013 she started a healthy food blog focusing on the Paleo lifestyle diet eating only lean protein, fruits/ vegetables, seafood and healthy fats from nuts. seeds and oils. Upon starting university she began product-developing and
making recipes, which promote both healthy eating and feeling great. She had previously sold products through the food blog but now her passion is all about creating her own food. Alongside her business co-owner and father Peter the company now specialise in a range of all natural cakes and cereal. With her appetite for food and nutrition Charleh wants to see Designed2Eat products in stores and coffee shops nationwide as well as planning to develop her own health/Paleo/vegan ready meal range. Eventually the pair want to become a nationwide fast food chain with delicious, and natural quality food. www.designed2eat.co.uk
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RISING STARS
A SWEET TOOTH FOR SUCCESS It is almost impossible to believe that the family-run, artisan cake brand Tarte and Berry was founded merely a year and half ago.
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Being passionate and having real love for your brand is so important in business
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THE SISTERS' SUCCESS But how is such a great feat of success achieved so quickly? Driven by a passion for baking, the Batham sisters established Tarte and Berry in September 2014.The Batham sister’s use of ‘correct, trusted techniques’ has boosted the business to the peak of the artisan bakery scene; the pair’s care and excellence sets them apart from the rest of the competition. Insistent on using only the best quality ingredients in their bakes, the Tarte and Berry brand is synonymous with prestige and quality. The success of Tarte and Berry is undeniable; however, this would not have been possible without the adoption of structured roles in the business. Trained at Gordon Ramsay’s Tante Marie Culinary Academy, 31 year old Jane Batham - creative head of Tarte and Berry, reflects on the origins of her culinary passion: “I really fell in love with the pastry and the baking side of it and that’s where the passion
came from.” From an early age, Jane developed a keen interest for cooking that has grown ever since her childhood. Jane’s experiences in culinary academy therefore heightened her love for food and this is impeccably translated in the work she does for the business. Lucy Batham, the younger of the two sisters (aged 26), acts as the Head of Marketing. With past experience in a career of sales and marketing for a dairy company in Leeds, Lucy came into the business equipped with the skills necessary to have an impactful part to play in its development. It is clear that an efficient relationship is imperative for a family run business to flourish. This is especially true in the case of Tarte and Berry – a business with just
two employees, who also happen to be its owners. Taking on such a huge responsibility is not without its downfalls, and the Batham sisters openly admit to it.
é Sisters Lucy and Jane Batham
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We don’t get the same social time as our friends
IT'S A BALANCING ACT Reflecting on the balance between work and social life, the Batham sisters agreeably said: “We don’t really get the same social time as our friends”. So ultimately, what is the secret to success? When asked this question, the Batham sisters explain that: “Being passionate and having real love for your brand is so important in business – we genuinely take pleasure in what we do and hope this comes across to our customers. This advice should be taken seriously. The business has won numerous awards, the most prestigious being the BBC Good Food Show Bursary Award in November 2014. This award speaks volumes about the success of the business, and the Batham sisters are just getting started. With plans to expand across the United Kingdom from Yorkshire, it would be safe to assume that the Tarte and Berry brand will become a household name in years to come – and deservedly so. www.tarteandberry.com
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n a short space of time, Jane and Lucy Batham (respective owners of Tarte and Berry) have surpassed everyone’s expectations; their business is the embodiment of success. Specialists in culinary excellence, the pair’s delicious sweet treats are enough to bring out anyone’s sweet tooth and their modern renditions on traditional family favourites such as Salted Caramel Millionaires are irresistibly flavoursome.
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RISING STARS
WELL DRESSED ANIMALS In 2009, brothers George and Henry Graham took their interest for fashion to the next level launching Wolf & Badger, a revolutionary retail space that supports young independent fashion and design brands.
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he brothers realised there was a gap where makers of high-end goods were selling their clothes but had not yet been picked up by a major department store. They therefore set about having a space which worked both as a store and a showroom, to attract both buyers and press who were looking for new talent. After finding a beautiful store in Notting Hill the pair filled it with racks and began renting space to designers for a monthly fee, taking a cut of the sales. Before they
had even finished signing the lease on the building, 70 designers had bought space in the store. The firm completely exploded on to the retail industry with something new and exciting. Although the brothers get about 6 applications per day, they only accept about 15 new designers each season. George has the envious task of hand-selecting each item that is sold through Wolf & Badger, whereas Henry works as the Creative Director. By having space in the shop
DREAMS IN DIGITAL
é Brothers, George and Henry Graham
designers get the opportunity to test new lines seeing what both buyers and the press think of it. Wolf & Badger now has stores in Notting Hill and Mayfair and has just merged with global online marketplace and accessories curator, Boticca.com. George and Henry definitely spotted a gap in market and have grown into a powerhouse supporting fashion brands and working with over 400 of the very best designers from around the world. www.wolfandbadger.com
ê KPS Digital Marketing founder, Dan Knowlton
Wanting to help businesses grow and improve, Mark Knowlton founded KPS in 2006, alongside a team of specialists.
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larger, family owned firm. Since launching his own arm of the business, Dan has been expanding the business, leading workshops and taking part in business conferences. Since starting his own firm Dan states he hasn’t worked a day in his life, because doing what you love isn’t working, right? www.kpsdigitalmarketing.co.uk
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lthough Mark had created a successful firm, his son’s ambitions seemed elsewhere, but like many next generation’s he realised he could follow his dream and still join his father in the family business. Developing a strong passion for online marketing and social media, his son Dan Knowlton, discovered that many small businesses were missing out on opportunities to generate new business online. He successfully rolled out a marketing strategy across the company and founded KPS Digital Marketing in 2014, which would form part of the
Doing what you love isn't working, right?
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RISING STARS
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It is amazing working alongside my brother
THE SECRET SAUCE to solve a problem that a lot of other people are experiencing which is exactly what Hackney born brothers John and Joshua Okungbaiye did.
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rom a young age the pair knew they wanted to start their own business, honing their skills whilst at school selling contact lenses to friends at school and using the profits to buy the latest games consoles. But whilst travelling in New York the brothers observed that many tourists were carrying their backpacks on their front, worried about losing their possessions. They thought, well why not simply put the zip on the back? Reeling in ideas, the boys found that no one had thought of it before so they set about founding the business. “Setting up a business sounds easy, but there are so many other bits of detail you have to consider,” states Joshua. In 2013 the duo began to create a unique range of stylish bags and High Spirit Bags was born.
trying to gain as much feedback as possible. Although they started with their own funds they went on to win the Virgin Pioneer Award and the Shell Livewire Award, which helped, propel the business to new heights. In charge of the general operation, Josh is the driving force behind the marketing and sales compared to John whose more creative mind means he designs the new products and takes care of manufacturing and quality control. Running the daily operations together, the brothers
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Setting up a business sounds easy, but there are so many other bits of detail you have to consider
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Sometimes to start a business you need
say they are aware of each other’s strengths and weakness as well, understanding each other on both personal and business level. “It is amazing working alongside my brother,“ comments Josh. This creative pair are keen to strike deals with big department stores and potentially even open their own store one day, wanting High Spirit to become a household name. Looking at life and business as an adventure the duo state “It’s important that a business has something unique to offer its customers. It has to be something that cannot be easily replicated. In other words, the business has to have a secret sauce.”
é Brothers John and Joshua Okungbaiye
www.highspiritbags.com
A CREATIVE PAIR They started simply making prototypes with a pop up stall,
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OTHER STUFF
IN BRIEF APPS
Snapchat makeover 2.0
One of the biggest crazes, Snapchat, has had a complete update offering users video stickers, funny filters, call and chat features. What does this mean? Well Snapchat story views will increase and it has been named as the most popular social network for teens. ADVENTURE
Spectre Stunt
James Bond films are jam-packed with adventure, passion and cool explosions, but Spectre topped them all off. The 24th 007 blockbuster film created a new Guinness World Record for the 'world's largest film stunt explosion.' Taking place in Morocco, that when the blast detonated, it had 33kg of powder explosives and lasted for over 7.5 seconds. It is clear that the spy thrillers directors are still pushing cinematic boudaries! TRAVEL
Nowadays you walk into virtially any coffee shop, restaurant, office, train station and you can get free internet access. However it was 25 years ago that the first ever online cafe network came into existence. TECHNOLOGY
Designed and built by Wayne Gregori in 1991, the SF Net Coffeehouse Network had 25 computer terminals in mulitple coffehouses in San Franciso. The network he generated meant people from all walks of life could use the chat rooms and message boards to discuss topical issues. Linked together through the network the coin operated computers cost $1 for 15 minutes or $2 from 30 minutes. The novelty
Love and the Beetle
Ivan and Beth Hodge, a couple from New Zealand started their marriage driving a Volkswagen Beetle across Europe for their honeymoon. 35 years later they completed the same trip in the same car. They are preparing to make one last tour in the vintage car across New Zealand. They have even released a book about all their adventures in the beetle.
The driveless cars TRAVEL Although automakers are already installing self-driving features in cars a new coalition is urging for regualtions to be passed that will allow totally autonomous vehicles. Google, Ford and Uber have formed a coalition named the Self-Driving Coalition for Safer Streets, which will push federal government in the US to form rules and regulations for the driverless cars. By creating rules it could help bring about the approval for new technology, getting it into the market faster.
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CAPPUCCINO & CONVERSATION
of having a space where the public could speak virtually sparked debates about the loss of human contact and how it might not take off. Seems ironic considering the amount we now all use our phones everyday. But back in 1991 Gregori transformed the way we communicated with each other. He truly started the online cafe phenonmenon for future concepts. Happy 25 years to coffee and chat!!
THE FUTURE OF PAYMENTS? Recently payments in stores and online have become easier. Contactless payment was the last big change, could Apple Pay be the next? TECHNOLOGY
Apple Pay is Apple's new contactless mobile payments system but rather than needing your wallet it can all be done with a touch of a button on your phone. Apple promised to turn our iPhone's into contactless bank cards but will it all work? Although it was first launched in 2015, it was not until April 2016 that all the major banks were on board. Of course Apple Pay will only work on iPhone's but with so many retailers on board it might just push
iPhone sales up ever further. Get ready to see Apple Pay-ready point sale tills on your local high street shops like Costa, New Look, KFC as well as being able to use it for train, tube and bus journeys if you live in London. Contactless cards, to phone paymenets, what's next?.
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