Generation Spring/Summer 2012 by Family Business Place

At the heart of the family business

Generation

Featuring:

Spring / Summer 2012

Official Magazine of Family Business Place

Matthews the Printers Thinking Creatively

Lord Harris

Our Children Are Our Future

Angels Three Is The Magic Number

West Countryâ&#x20AC;&#x2122;s Finest Exploring the best in the West

Discussing: Can happiness and wealth co-exist in the family business?

Helen Thomas

Pushing New Frontiers at Westons Cider

contents

IN THIS ISSUE 49

28 76 opinion

upfront

Every penny really does count

News and highlights from the world of UK family business plus speakers announced for ‘Family Ties’ annual conference 2012

meets

focus

west country’s finest

expert

Behind the scenes with Westons Cider, Carpetright, Matthews the Printers and Angels

Insights from the professionals on leadership, marketing and well-being

Celebrating family businesses in this magical part of the UK

prosperity

ten

panel

review

Discussing business ethics, philanthropy, family wealth and investments

10 questions to ask when joining a family firm

Our experts are in the hot seat to answer your burning questions

Recommended reading from our family business library

Under the skin of Miranda Ballard from Muddy Boots Foods

The professionals talk pre-nups, succession, pensions and planning for the future

Generation Creative Team: Creative Director: Anita Brightley-Hodges anita@familybusinessplace.com Head of Design: Colin Fielder colin@familybusinessplace.com Designer: Nick Bennett nickb@familybusinessplace.com Photographers: Jeremy Baile RGB Digital jeremy@rgbdigital.co.uk, Nick Gillott nick@nickgillott.com

SIMPLY BURSTING WITH FLAVOUR

Look out for Henry Westons Vintage Cider with its distinctive taste which just bursts with the full flavour of apples. You can find it in supermarkets, specialist shops, convenience stores or your local independent shop. Alternatively the complete range is available from our online shop at

www.westons-cider.co.uk

Please enjoy responsibly.

editor’s letter

“With the spotlight on UK businesses in 2012, how can the family business sector really shine?”

NOW IS OUR TIME TO SHINE The summer of 2012 presents an historic time for the UK – not only are we celebrating 60 years of Queen Elizabeth’s reign with the Diamond Jubilee, but are also acting as centre stage for the world’s most famous sporting event; the Olympics. So with the spotlight on businesses in the UK, how can the family business sector really shine? It will be the small independent retailers, the restaurants and pubs, the hotels and tourist stops owned and managed by passionate families who will rise to the top. Our job is to support the unrecognised efforts of these familyrun businesses and ensure they continue to thrive. With that in mind, our current issue of Generation features some real hidden gems of the family business sector. From Helen Thomas leading the way at Westons Cider through to six generations of the Angel family running the country’s most successful

costumiers. We also meet the family behind Matthews the Printers as well as Lord Harris, founder of Carpetright, who’s philanthropic efforts lie at the heart of his business today. We’re delighted to compliment these features with articles from trusted professional advisers. Their mission is to help family businesses grow; guiding them through times of turbulence, being on hand to offer expert advice and ensuring that romantic notions of running a business with family don’t hinder the commercial performance of the firm. Finally, we’re over the moon to officially welcome new faces to the team at Generation – many of whom you’ll be reading about, speaking to and meeting very soon. I do hope you’ll enjoy my first issue as Editor of Generation and I look forward to meeting lots of other fantastic family businesses over the coming months.

Best wishes

AMALIA BRIGHTLEY-HODGES, EDITOR-IN-CHIEF

GENERATION SPRING / SUMMER 2012

contributors

1. Amalia Brightley-Hodges, Editor-in-Chief, Generation Magazine and Family Business Place 2. Anita Brightley-Hodges, Managing Director, Family Business Place 3. Ka Lai Brightley-Hodges, Editorial Assistant, Generation Magazine 4. Molly Bedingfield, Global Angels 5. Charlie Mullins, Pimlico Plumbers 6. Tim Box, Headway Hypnotherapy 7. Ian Oakley, Independent Business Coach 8. James Bly, John Bly Antiques 9. Paul Andrews, Family Business United 10. David Johnson, Leaders Matter 11. Jeremy Baile, RGB Digital 12. Mary Spillane, Independent Business Advisor 13. Steve Rosenbaum, Independent Family Business Consultant 14. Claire Gordon, Farrer & Co 15. David Pierce, Hazlewoods LLP 16. Dani Saveker, International Centre for Families in Business 17. Estelle Gillette, Partner, A Healthier Life Wellness Centre 18. Martyn Sullivan, St. Jamesâ&#x20AC;&#x2122;s Place Wealth Management 19. Nigel Southon, VentureGrowth Associates 20. Simon Webley, Institute of Business Ethics

Subscription and Advertising enquiries: sam@familybusinessplace.com / Editorial enquiries: Amalia Brightley-Hodges amalia@familybusinessplace.com Production enquiries: Anita Brightley-Hodges anita@familybusinessplace.com / Designed and Published by Family Business Place www.familybusinessplace.com ISSN 13644776

GENERATION SPRING / SUMMER 2012

opinion

“Many businesses measure their success on profit margins, turnover and other financial indicators. But family businesses gauge their success by the difference they have made and the legacy they will leave.”

LOOK AFTER THE PENNIES… Alison Hutchinson, CEO of the Pennies Foundation, explains how family businesses are leading the latest philanthropic movement. The well-known saying “look after the pennies and the pounds will look after themselves”, couldn’t be truer than during today’s tempestuous economic climate. Although I think it’s fair to say that family businesses have always traditionally done this anyway. I was born into a small family business environment where my parents set up a range of businesses all aimed at supporting the community in which they lived but there were a number of things they had in common – the way they operated. From seeing my parents run their businesses, I soon learnt that there are several basic principles to running a successful company: customers are ‘king’, inspired employees are essential to success and by the end of every week you needed to ensure you had “made more than you spent”! The final ingredient my parents believed was critical to a successful, sustainable business was about giving a little back to the communities in which you serve. For years many retailing based family businesses have contributed to charities in a variety of different ways and often place a cash collecting box at their till points, giving their customers a simple way to donate a few pennies to charity if they wanted to. Increasingly we are using payment cards to pay for goods and services or shopping on the Internet, so these collecting boxes are well overdue a makeover. At the Pennies Foundation we created Pennies, the electronic charity box. Pennies gives consumers a simple, fast and private option to round up or top up their card purchases by a

few pence and, with one touch of a button, give this change to charity. The capacity to give in this way is incredible. If all of the 43 million card users in the UK gave once a month at an average of 30p per month, over £150 million would be raised for UK charities every year. Because of the very nature of family-run companies, it is not surprising that a number of family businesses are already leading the Pennies movement. For example, Gary Grant’s chain of 65 toy shops, The Entertainer, were the first to switch on Pennies in store. After just 9 months over 50% of customers given the option to donate have chosen to do so, raising over £130,000. All the pennies go to charity but the majority go to four children’s hospitals chosen by Gary and his team. Over the last few months a number of other family businesses have joined the Pennies movement, such as BuySpares and Party Pieces. No matter how large or small, all of the family-run firms I’ve encountered have an inherent sense of loyalty to the local community and a responsibility to ensure that their business gives back to worthy causes, particularly those close to the heart of the family. Many businesses measure their success on profit margins, turnover and other financial indicators. But the majority of family businesses I have ever met gauge their success by the difference they have made and the legacy they will leave. www.pennies.org.uk

GENERATION SPRING / SUMMER 2012

upfront

The sweet smell of celebration For the Queen’s Diamond Jubilee this year, Royal Warrant holders and 8th generation family business Floris have created a special fragrance, which will be presented to the Queen. Taking inspiration from an old Royal Arms recipe that

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

was used for the Queen when she was born, Floris have created a new scent that will be available as Eau de Parfum and an Eau de Toilette. However, they have had to make a few changes to the old recipe as many ingredients that were used are no longer

available and it has taken 3 months to perfect the scent. The Queen’s fragrance is one of six that have been specially poured into antique crystal bottles dating back to the 1900-1930 era with a diamond necklace draped around the neck of the bottle

and placed into a specially handmade crafted box. Another bottle will be kept for Floris’ archives, another will be auctioned for charity and the last three will be sold at £15,000 a bottle.

www.florislondon.com

Queen’s recognition for renowned frame maker John Jones, Chairman and Founder of printing and framing company John Jones, has been honoured in 2012 with an MBE for his services to the arts. The family business, which started in the 1960s, is famed around the world for creating signature frames for David Hockney and Francis Bacon, specifically to complement their work. Still a family run company, John’s two children are also involved helping John to grow the business. John Jones said of this honour, “It was completely unexpected, and I feel truly overwhelmed to

GENERATION SPRING / SUMMER 2012

left:

John Jones receives his MBE from HM The Queen

have been given this incredible recognition. The main thing I can say is how delighted I am that my children have continued my passion and are building upon what I started. We are completely

committed to the presentation and preservation of art and have lots of exciting new plans in place for the future.” www.johnjones.co.uk

upfront

Husband and wife sell business to telecoms firm Founded in 2001 by husband and wife team Paul and Selena Bailey, The Worldwide Group specialises in call-handling for phone conferences, including providing free-phone numbers to conference members in different countries. Paul and Selena Bailey each held 45 per cent of the private shares in Worldwide Group Holdings, which has been bought by telecoms firm Daisy Group for the cash sum of £28million. Daisy Group chief executive Matthew Riley said: “Worldwide represents a strong strategic fit and clear growth opportunity for the group”. Since its beginnings more than

10 years ago Worldwide has made £36million in revenues and earned £4million in 2011, a great achievement for a group which started out with just 5 members of staff. www.worldwidegroup.co.uk

Expansion on the cards Long established, South Wales based and family run Leekes Group have announced plans for huge expansion this year after a £25million re-financing deal was secured. The group, which comprises The Vale Resort (a 4 star golf and spa venue) and Leekes Retail (four department stores in Wales and the Midlands) has already re-developed the historic Hensol Castle into a luxury 5 star boutique hotel and apartments with great success. This year they are looking to improve the sporting facilities at The Vale Resort as well as starting a new department

A Royal salute to manufacturing 2012 has turned out to be a very exciting year for family business and Royal Warrant holders Toye, Kenning & Spencer. Renowned for their state insignia and civil and military identity products, the business, which is more than 320 years old, has won the contract to make the medals for the Queen’s Diamond Jubilee alongside two other companies. Toye, Kenning & Spencer has produced the medals in its Birmingham factory and woven the ribbon at its Bedworth factory. Fiona Toye, Chief Executive of Toye, Kenning & Spencer, said of the achievement, “We are extremely proud to be entrusted with the manufacture of this special medal. We hope that, as the

medal honours our service personnel and celebrates the Queen’s long reign, it is also a reminder of the unrivalled manufacturing skills in the Midlands.” Those eligible for the medal are members of the armed forces who have served five full years or more, emergency services personnel who have faced the prospect of dealing with emergencies as part of their conditions of service, operational prison service personnel who are regularly exposed to difficult and sometimes emergency situations and all police community support officers. Living holders of the Victoria Cross and George Cross are also eligible for this prestigious medal

www.toye.com

store in Coventry and other developments. The company was founded more than 100 years ago by James Henry Leeke, it has a turnover of £70 million and employs 1000 people. www.leekes.co.uk

GENERATION SPRING / SUMMER 2012

upfront

Family business support in Northern Ireland Earlier in the year, BDO Northern Ireland jointly with Queen’s University Management School, Belfast held a Family Business Forum, the first of its kind in Nothern Ireland. Different types of family businesses from across Ireland attended the evening, hosted in the beautiful surroundings of the University. The panel included three speakers; Catherine McKeever, McKeever Hotel Group, Damian Heron, Heron Bros and Bill Wolsey from the Beannchor Group who all

shared their experiences of working with their family, in particular their children. 75% of all businesses in Northern Ireland are family run and BDO along with Queen’s University have carried out extensive research on the issues that family businesses face in order for them to be able to provide the best advice and run new workshops for family business members and non-family executives. BDO Managing Partner Martin Francis said, “The study with Queen’s University recognises the unique and

complex environment within which family businesses operate. At BDO we have a long track record of working with family firms. Our partnership with Queen’s University will help us to build upon our knowledge base and provide leading edge best practice advice in the areas of family business relationships, governance and people, financing and succession management.”

www.bdoni.com www.qub.ac.uk

OBE for luxury furniture maker and perfumer Clive Christian Clive Christian, founder of the luxury furniture and perfume company, has received an OBE from the Queen for his services to the luxury goods industry. Clive, who started his business in 1978 creating bespoke, highend kitchens and furniture, now works alongside his daughter Victoria Christian. Victoria is an ambassador for Clive Christian Perfume, the world’s most expensive perfume. Clive himself is a great ambassador for family businesses in the UK. Clive said he was ‘tremendously proud’ to be receiving an OBE, “To be acknowledged by Her Majesty in her Diamond Jubilee year is a great honour.” And in honour of the Diamond Jubilee, Clive will be unveiling a special perfume presentation paying homage to the Queen – bringing the company’s history full circle. 2012 has been a great year for the family business sector, many of whom have been recognised in the Queen’s honours www.clive.com

GENERATION SPRING / SUMMER 2012

top:

Dr Claire Leitch, Queen’s University Management School, Eugene McKeever, McKeever Hotels Group, Cathy Booth, BDO, Catherine McKeever, McKeever Hotel Group left:

James Sinton, Beannchor Group, Shane Hall, BDO, Bill Wolsey, Beannchor Group.

upfront

New opportunities for local people London based, family owned construction and crane hire company Emersons are creating more jobs for local people and training for employees after it secured a £2.5 million deal for two extra cranes. The Dagenham based company (formed in 1991 by

Edward Clancy and still very much a family business) has purchased a 90 tonne crane and a 200 tonne crane as well as buying half an acre of land opposite their current premises. This deal is part of the company’s future plan to hire more crane operators,

lorry drivers, supervisors and youngsters from the borough which has the highest unemployment rates in London. “We are a national business, looking for local skilled individuals to fill various vacancies on offer in our

been nominated for this award especially as it is our staff that put her forward. It means a great deal to not only me, but to my two sisters, who are also directors, that we run a happy ship and we have a very healthy working environment.”

In 2010 letting agency Bournecoast celebrated its 50th anniversary and has been family run since its inception when it was established by Major and June Webb in 1960. Keith Simmons MBE, the previous Managing Director

family business” Said Liam Clancy, Operations Director at Emersons. During these times of economic difficulty, the family business sector is leading the way with employment and training.

www.emersoncranes.co.uk

Women leading the way Veronica Strongman from familyrun estate agents Bournecoast has been selected as a semifinalist for this year’s Langtry Venus Women Awards, as well as being short listed for the ‘Employer of the Year Award’. The Langtry Venus Women Awards aims to recognise the achievement of women in business. Last year saw Veronica’s brother Des Simmons who is MD of Bournecoast reach the finals in the same ‘Employer of the Year’ category. Des said, “We are delighted that my sister has

and Major Webb’s son-in-law, was then joined by his son and daughters, Des Simmons, Veronica Strongman and Anita Smith, who now run the company with fifteen staff. www.bournecoast.co.uk

GENERATION SPRING / SUMMER 2012

Keeping Memories Precious How many of us have inherited jewellery from relatives, grandparents, our mothers and fathers, but never worn them either because they are old fashioned or simply forgotten and hidden away? At Irene & Jenny we provide an exclusive bespoke service to breathe new life into treasured family gems, by using them to create beautiful and unique rings that will last for generations. Contact us to arrange a private consultation. Visit our website www.ireneandjenny.com or telephone 07590 830 001 email info@ireneandjenny.com

eyebrow running upfront head

Olympic disruption bad for business Regular Generation pundit Charlie Mullins explains why, despite the hype, he feels the 2012 Olympics will prove to be a difficult time for business owners. It would have been far better for the British economy – and for business owners – if we hadn’t won the 2012 Olympic bid, and while big business may be able to delude itself that “it’ll all be worth it in the long-run” summer isn’t going to be fun for the little guy, especially in London. From the moment the fireworks finished on the banks of the Thames and Big Ben had chimed in the New Year, the word that appears to be on everyone’s lips is “Olympics”.

“

According to a report by Visa, the UK economy will be boosted by £750m worth of spending during the Olympic. In the grand scheme of things, this is a low figure and will only provide a short-term boost to the economy

“

Of course it’s very exciting for all the athletes who are coming to the UK to prove they are at the top of their game, and for fans looking for a sporting spectacle. And with all the international TV coverage comes massive exposure for some of our biggest corporate names. But it’s not a good thing for small businesses trying to survive and make a quid, and therefore the economy as a whole. Once again the fact that we employ 59% of all private sector workers and are responsible for 52% of GDP has been ignored as the corporate gold-rush picks up speed. The Olympics is a waste of time and money.

Obviously it’s going to benefit some industries such as hospitality, transport, tourism and retail. But for the majority of businesses, it will have a negative and disruptive effect. And before I get accused of being a Londoncentric Nimby, I strongly suspect the Olympic related congestion in the capital will see supply chain problems spread across the country.

Spend, spend, spend? Of course I’ll be called a killjoy, but I’ve no hesitation in saying it would be better for the British economy and for business if we had never won the 2012 Olympic bid! According to a report by Visa, the UK economy will be boosted by £750m worth of spending during the Olympics. In the grand scheme of things, this is a low figure and will only provide a short-term boost to the economy. In addition, this is just an estimate and there is no guarantee that domestic spending will increase and that tourists are going to spend this amount of money. It’s going to cause a lot more traffic on the roads, which is already a nightmare to get through. Imagine the current transport infrastructure dealing with the expected 5.5 million day visitors we will see at the Olympics. The logistical problems caused by increased traffic will make it harder for businesses (and customers) who rely on them to survive. Another challenge for my business is the expected exodus of people, employees and customers, who will take holidays during the Olympics to escape all the commotion. The traffic will also cause disruption to

employee attendance, as many will turn up late or not come in at all.

Affects us all Again the traffic might just be a London problem, productivity is a national issue. Staff will be less likely to be focused on their work with all the hype around the Games or they may rush their work in order to leave early to get home to watch it! Obviously there is a great morale boost to be had as a

nation if we manage to pull off the best Olympic Games ever seen, not to mention the anticipated success on the tracks, in rings and swimming pools. All I hope is that it’s enough to compensate us for the javelin through the chest of many business owners, who have enough on their plates without worrying about the effects that the Games will have on their operations. www.pimlicoplumbers.com

GENERATION SPRING / SUMMER 2012

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GENERATION SPRING / SUMMER 2012

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upfront

A Voice in Westminster Major research on the family business sector has led to an extremely busy few months for the IFB with significant meetings with both ministers and officials from the key Government departments of BIS and HM Treasury - Dr Vince Cable praises family businesses. Since the last edition of Generation the IFB has made significant progress with its policy to raise awareness of the family business sector. The Government firmly acknowledged the importance of the sector when Secretary of State for Business, Innovation & Skills, Dr Vince Cable MP, made the keynote speech at the inaugural Annual Reception of the All-Party Parliamentary Group (APPG) for Family Business. Addressing the subject of responsible capitalism, Dr Cable said: “Family businesses by their very nature look to the long term and plan 20 years ahead, while some parts of business are very short term.” The backbone of the UK economy The APPG event also marked another significant milestone as it saw the launch of the second IFB UK Family Business Sector report, with a foreword by Dr Cable, which gained plenty of coverage in the national papers and was mentioned on Radio 4’s Today Programme, demonstrating how vital the sector is to the UK economy. Family business in the UK • 3 million family firms – two in three private sector enterprises • 9.2 million jobs – two in five jobs in the private sector • £1.1 trillion turnover – almost a quarter of GDP

The report was also backed up by some very useful findings from the Universities of Nottingham and Leeds that showed that private family firms are consistently less likely to go out of business, either through insolvency or dissolution, than their non-family counterparts. This is compelling evidence of the robustness of the sector during the recent recession. Working with BIS to promote growth The sector report certainly put family business in the spotlight and we have noticed greater recognition by the Government of the contribution they make since its publication. For instance, the IFB has met with Business Minister Mark Prisk MP twice recently to discuss ways that we can work more closely with BIS to encourage growth in the sector. This follows on from the findings of the Government’s Mid-Sized Business (MSB) Growth Review which identified family firms as making up almost half the number of these companies (turnover £25m - £500m) some 5,000 firms. In our meeting with Mr Prisk he told us he recognised how ownership stability can contribute

to the long-term development of a robust MSB sector with family firms as the cornerstone. We are therefore encouraging the Government to develop policies that will foster ‘patient capital’, where long-term investment can underpin innovation and growth. We also discussed with Mr Prisk the IFB’s Family Business Challenges programme, an initiative to boost growth and performance in the family business sector. This includes a series of nationwide seminars to right:

Dr Vince Cable giving his keynote speech at the Annual Reception of the APPG for Family Business

promote best practice in areas such as succession planning, the recruitment of management and the development of the next generation. We have also launched a series of online guides on these subjects on the IFB website. Tackling the Treasury A recent paper produced by the London School of Economics criticised the performance of some family businesses and called for the scrapping of Business Property Relief (BPR) for Inheritance Tax – an action the IFB would consider disastrous for the sector’s growth. The IFB requested a meeting with Exchequer Secretary David Gauke MP to discuss this issue and we were encouraged by his response. Mr Gauke recognised the strategic importance of BPR to underpin the development of the family business sector and that the Government’s view was supported by the review of tax reliefs by the Office of Tax Simplification, which had not recommended its removal news that will be welcomed by everyone in the family business sector. www.ifb.org.uk

GENERATION SPRING / SUMMER 2012

upfront

Annual Conference 23 November 2012 Family Ties annual conference is THE conference for the family business sector and has become a firm favourite in the calendar. This year’s conference, hosted by Family Business Place, will be held at the prestigious Shaw Theatre in London and brings together family-run companies from across the UK. Book Tickets: www.familybusinessplace.com/familyties2012 The Speakers The guest speakers share insights into the challenges they face, the issues they have had to overcome, and the drivers that make their family businesses special.

Chris Kelly MP All-Party Parliamentary Group for Family Business Chris’ previous experience as Marketing Director of his family’s business means he is in the perfect position to understand the needs of the family business sector.

Helen Thomas Westons Cider

Nick & Giles English Bremont

Gary & Mike Martin Martin Construction

Helen is currently the 4th generation at the helm of Westons Cider and will be sharing her experience of putting together a Family Constitution.

Inspired by their late father, brothers Nick and Giles oversee the expansion of their luxury watch brand renowned for its craftsmanship and endorsed by celebrities the world over.

Coming from a long line of Northern Irish builders, Gary and Mike are a new generation of entrepreneurs in the construction sector.

Paul Andrews, Family Business United

Philip Wright Walter Wright Hats

Michael & Nicholas Wainwright Boodles

Paul works alongside family businesses and their advisers to help the business grow and ensure its success for generations to come.

Philip’s family have been making hats for over 300 years, making Philip one of the oldest ‘blood line’ hat manufacturers in the world, now making hats for film, theatre and TV.

Brothers Nicholas and Michael are the 5th generation of their family to oversee one of the UK’s most prestigious jewellery brands.

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upfront

The Family Business Place team put on a truly splendid and inspiring conference yesterday. Quite the best I have ever attended BNY Mellon

Edward Bodenham & Polly Gredley, Floris

Kim Einhorn & David Jamilly Theme Traders

Ravi Gidar Gold Care Homes

Geoffrey Dovey Dovey Premium Products

Founded in 1730, Floris is currently run by the 8th and 9th generation of the family. Edward and Polly are siblings who oversee the Marketing and PR of this luxury British brand.

As young entrepreneurs Kim and David founded and grew a business which is now one of the UK’s leading partyplanning and prop hire companies.

Privately owned by the Gidar family, Gold Care Homes consists of 14 care homes. Ravi Gidar will be talking about his experience of running such a successful family business.

As the 3rd generation at the helm of the business, Geoffrey is renowned for his passion for quality poultry and campaigns for better quality across the industry.

The Shepherd Family Shepherd Group

Sir Harry Legge-Bourke Glanusk

Peter Leach Peter Leach & Partners

David Johnson Leaders Matter

The Shepherd Group employs around 3,500 people with an annual turnover exceeding £600 million. The Shepherd family will be sharing their story of being at the helm of one of the UK’s largest family-owned companies.

Glanusk Estate is privately owned by the Legge-Bourke family and is currently overseen by Sir Harry Legge-Bourke. It is situated in the Brecon Beacons National Park, and is one of the largest privately owned Estates in Wales.

Peter has over 25 years’ experience in advising family owned businesses and the people behind them and is one of the world’s leading family business consultants.

David Johnson works extensively with family-owned businesses in the UK, advising on management and generational succession, recruiting non-family Board executives and mentoring next-generation leaders.

GENERATION SPRING / SUMMER 2012

Winners of Red Ribbon Awards 2011...

❝ Winning this award has opened so many doors for us, and the opportunity to build great business relationships with other family businesses. ❞ Last year’s Red Ribbon award winners. This year it could be you... Barbara Gray - MD Clarity Stamp

Red Ribbon Awards 2012 The Red Ribbon Awards are the only family business awards in the UK to recognise the achievements of family businesses of all sizes from around the country. The following family businesses (opposite) have been shortlisted for the Red Ribbon Awards. Winners will be announced at the Red Ribbon Awards Charity Dinner on 23 November 2012.

BOOK YOUR TICKETS TODAY ! Red Ribbon Awards & Charity Dinner 23 November 2012 London

Red Ribbon Awards 2012 Shortlist Family Business of the Year

Innovation

• Toye, Kenning & Spencer - www.toye.com

• Bastows - www.bastows.co.uk

• Henleys Medical Supplies - www.henleysmed.com

• Winterhalter - www.winterhalter.co.uk

• Youngs Healthcare - www.youngsdentalpractice.co.uk

• AW Hainsworth & Sons - www.travelcounsellors.co.uk

• Commercial Utility Brokers - www.c-u-b.com

• Ashbourne Insurance - www.ashbourneinsurance.co.uk

• Turtons of Devon - www.turtonsofdevon.co.uk

• Romney Marsh Wools - www.romneymarshwools.co.uk

• Langtry Manor Hotel - www.langtrymanor.co.uk

Longevity Family Business Ambassador

• S.Taylor & Sons (Stockport) Ltd - www.taylorsglass.co.uk

• Joachim Vandaele, TrustedFamily - www.trustedfamily.net

• Merrythought - www.merrythought.co.uk

• Peter Smits, Ashbourne Insurance - www.ashbourneinsurance.co.uk

• Walter Wright - www.buyhatsonline.co.uk

• Sarah Smits, Ashbourne Insurance - www.ashbourneinsurance.co.uk

• Henleys Medical Supplies - www.henleysmed.com

• Sandy Loder, AH Loder Advisors - www.ahloderadvisors.com

• Langtry Manor Hotel - www.langtrymanor.co.uk

• Ken McCracken, Family Business Solutions -

• Shepherd Neame - www.shepherdneame.co.uk

www.familybusinesssolutions.co.uk • Paul Andrews, Family Business United www.familybusinessunited.co.uk

New Frontiers • Triplar - www.triplar.co.uk • Travel Counsellors - www.travelcounsellors.co.uk

Community Involvement

• Westons Cider - www.westons-cider.co.uk

• Commercial Utility Brokers - www.c-u-b.com

• Morgan Motor Company - www.morgan-motor.co.uk

• Howard Nurseries - www.howardnurseries.co.uk

• Walter Wright - www.buyhatsonline.co.uk

• Timpson - www.timpson.co.uk

• Clive Christian Perfume - www.clive.com

• Lord Harris, Carpetright - www.harrisfederation.org.uk • Shepherd Neame - www.shepherdneame.co.uk

Best Small Family Business

• William Jackson Food Group - www.wjfg.co.uk

• Walter Wright - www.buyhatsonline.co.uk • Abbey Antiques - www.abbeyantiques.net

Customer First

• Newhay Feeds - w ww.newhay.co.uk

• Ashbourne Insurance - www.ashbourneinsurance.co.uk

• Romney Marsh Wools - www.romneymarshwools.co.uk

• Triplar - www.triplar.co.uk

• Rosedale Funeral Home - www.rosedalefuneralhome.co.uk

• The Goring Hotel - www.thegoring.com

• Ashbourne Insurance - www.ashbourneinsurance.co.uk

• Timpsons - www.timpson.co.uk • Stevenson Brothers - www.rockinghorses.uk.net

Young Gun

• Travel Counsellors - www.travelcounsellors.co.uk

• Charlie Beldham, Cotswold Gold - www.cotswoldgold.co.uk • Gemma Firth, Matthews the Printers - www.matthews-printers.co.uk

Entrepreneurship

• Gary Martin, Martin Construction - www.martin-construct.co.uk

• Kuldip Singh, Mr Singh’s Sauces - www.mrsinghssauce.co.uk

• Sanjay Arora, Arora Hotels - www.arorahotels.com

• John Harrison Banfield, Dauphin Restoration - www.dauphin.co.uk

• Jennifer Kerfoot, Kerfoot Group - www.kerfootgroup.co.uk

• Kristina Boulden, Romney Marsh Wools -

• Silja Nyboe Andersen

www.romneymarshwools.co.uk • Gary Martin, Martin Construction - www.martin-construct.co.uk

Corporate Environmental Responsibility

• Miranda Ballard, Muddy Boots - www.muddybootsfoods.co.uk

• Bastows - www.bastows.co.uk

• Sarah Copas, Copas Partnership - www.copas.co.uk

• Howard Nurseries - www.howardnurseries.co.uk • Commercial Group - www.commercial.co.uk

Fastest Growing Business

• Matthews the Printers - www.matthews-printers.co.uk

• Triplar - www.triplar.co.uk

• Yeo Valley - www.yeovalley.co.uk

• Thames Executive Charters - www.thamesexecutivecharters.com

• Ecosan Services - www.ecosanservices.co.uk

• Travel Counsellors - www.travelcounsellors.co.uk • Gibbs S3 - www.gibbs-s3.com • 99p Stores - www.99pstoresltd.com • COOK Foods - www.cookfood.net

TO BOOK RED RIBBON AWARDS & CHARITY DINNER TICKETS GO TO: www.familybusinessplace.com/awards2012 For sponsorship enquiries talk to sam@familybusinessplace.com

T: +44 (0)20 7437 5050 www.boodles.com

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CIDER’S FIRST LADY Helen Thomas’ great-grandfather came to ‘the Bounds’ at Much Marcle, Herefordshire in 1878. Today, Westons’ traditionally produced, award winning draught and bottled products are available throughout the UK as well as being exported to more than 40 countries worldwide Amalia Brightley-Hodges meets the woman in charge.

niquely for the alcohol industry, it is a female at the helm of Westons Cider, 4th Generation Helen Thomas. Along with her two brothers, Helen began working in the business at a young age, picking apples in the autumn and loading lorries in the school holidays to earn some extra cash. This meant that Helen was already familiar with the business and its people when she joined full time after qualifying in business studies. Together with her brothers, Helen started at the bottom and gradually worked her way up through the business, going from secretary to Company Secretary and eventually Managing Director. “As my father grew older, he took a step back and allowed me to pave my own way through the business. He had always been the ‘boss’ so our relationship didn’t change

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above:

Helen and the Weston family. below:

A bottle of Westons’ famous Stowford Press.

too much when I began working for him. But he could see that my generation were keen to be involved and keep the business in family hands,” explains Helen. As well as Helen, there are also lots of other family members involved in the business including her son, Guy, who is a junior cider maker. Helen believes that it’s important for the family to understand how cider is made and that everyone should experience different parts of the business to truly understand what it takes to make the business succeed. “Guy is currently working under our master cider maker but for a few years he worked in New Zealand for a small cider mill, which opened his eyes and gave him the chance to grow up away from the business. This experience enabled him to develop as a person, and also to bring back skills and techniques which could help us at Westons.” Although a very traditional business steeped in heritage and ancestry, Westons Cider is also a company taking on new challenges and innovations. Just as important as the past

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is the future and, in particular, the need to continuously innovate and keep ahead of trends and fashions. “The cider market is only 9% of the entire drinks industry. And Westons is only 3% of the cider market so there is a huge amount of scope for us to grow and expand into other areas. Cider is a very English product, there’s so much we can do with it and we’re perfectly positioned to make the most of these opportunities,” says Helen.

Future growth Under Helen’s leadership, Westons has truly blossomed and become one of Britain’s most loved brands. But their decision to expand overseas was not taken lightly and was a steep learning curve for the whole business – “We didn’t know where to start and so contacted our local Chamber of Commerce. They gave us advice on all aspects of the export market and then it was down to us to determine our route to market. We have worked tirelessly to develop good relationships with customers overseas, many of which are looking to grow

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their own business and so we can work together on supporting each other. It’s then a case of normal business practice – ensuring credit terms and good communication channels are in place, defining trends (which vary from the UK) and having a good network of partners.”

“

We have worked tirelessly to develop good relationships with customers overseas, many of which are looking to grow their own business and so we can work together on supporting each other

“

The formula clearly works; Westons is sold in over 40 countries worldwide with further plans for expansion into new markets. As for the future of Westons, Helen is very clear that she wants to ensure the business is around for at least another hundred years. Not only does this mean continuously investing in the site, developing new products, staying ahead of market trends and maintaining good

overseas relationships, but also means making sure that the family itself is an asset to the business, not a hindrance. “Some years ago, we took the decision to embark on a Family Constitution. For many families, it’s a daunting prospect and should definitely be seen as a continuous journey rather than a one off project,” explains Helen. “If you have lots of family members involved in your business, either as employees or shareholders, then it’s important that everyone understands where they stand, rules and procedures, aims and ambitions and, most importantly, the values that lie at the heart of the business. Once we were completely happy with the wording of each chapter, our Family Constitution was designed and produced as a beautiful book in its own presentation box. When I presented each member of the family with their copy, they all beamed with pride which definitely made the process worthwhile,” ends Helen.

top left:

The first ever Westons cider vats. top right:

Helen’s son, Guy, is currently a junior cider maker. middle right:

An old Westons

cider advert. lower right:

The Westons Family Constitution was designed into a book for each member of the family.

www.westons-cider.co.uk

GENERATION SPRING / SUMMER 2012

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A LEGACY FROM A LIFE IN CARPETS Amalia Brightley-Hodges meets Lord Harris of Peckham, founder of Carpetright and dedicated champion of educational causes.

amily businesses rarely have an easy journey to the success they enjoy today. And in the case of Lord Harris, founder of Carpetright, this is certainly true. In 1957, when he was just 15 years old, Philip Harris’ father sadly passed away from cancer and he was left to run the three carpet shops with his mother. Three years later, she too passed away and so this young man was suddenly in charge of his family’s business with very little experience. “I surrounded myself with people I trusted, people who had skills and a willingness to work hard. They weren’t necessarily fully trained or with lots of qualifications but it meant I had a support network to refer to and help me keep the business going,” explains Lord Harris. In 1988, the original business, CW Harris, and its 1,600 shops was part of a hostile takeover. The young Philip Harris then went on to found Carpetright, which today boasts over 700 stores in four countries employing over 3,000 people.

Still at the helm after floatation In 1993 Carpetright floated on the London Stock Exchange. Lord Harris says this was a hard time and very upsetting for him and the family. Despite this, the company went on to expand rapidly and saw turnover up to £185million by 1996 with Lord Harris still at the helm as Chairman. For Lord Harris, the highlight of his journey in business came in 1998 when Carpetright celebrated 10 years in business. At that time, the company had 308 stores, over three million

GENERATION SPRING / SUMMER 2012

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square feet of trading space, a turnover of £277million and a profit of £23.5million. “I remember fondly a period of time when we were opening a store every ten days, this went on for nine years!” explains Lord Harris. And, despite some very challenging times for the economy, Carpetright’s expansion has continued with stores now in Belgium, Holland and Southern Ireland.

Carpeting the EU Lord Harris explains the reasoning behind their overseas expansion - “Europe has been good for us, it’s important to look at the potential of expanding business abroad whilst the UK takes time to recover from what has been a terrible time for most of us in business. We have been in these European countries for ten years now so the brand is established and operating well whilst we continue to support the UK business during difficult times.” Unlike many family businesses who often have trouble separating work and home life, Lord Harris says that it’s quite simple for him. He likes to enjoy time at home with his family without the worries and concerns of business diverting his attention. And even though his two sons, Martin and Peter, play very senior roles

“

I remember fondly a period of time when we were opening a store every ten days, this went on for nine years!

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at Carpetright, family time remains just that. When one understands how phenomenally well Lord Harris has done since being left to run his father’s business at just 15 years old, it’s not hard to understand why he is also exceptionally generous including sponsoring 14 Academies in London which teach over 20,000 underprivileged students. Lord Harris explains why he has put so much of his personal time and money into education, “As an employer and as a father, I know that a good education is the best start you can give a child. For nearly 20 years, my family and I have been actively supporting the development of schools and academies that give all of their students the skills, encouragement and care they need to become well-rounded individuals who achieve their personal best. The Harris Federation brings all of this experience together. With Dan Moynihan as CEO and our

exceptional team of teachers and leaders in charge, we have the organisational structure and educational expertise in place to continue this work and transform the lives of generations of children in and around London.” Together with his wife, Pauline, Lord Harris also supports many other great causes including Great Ormond Street Children’s Hospital and several cancer charities. Pauline herself has raised over £100 million for charity and opened the first ever cancer unit in the UK at Hammersmith Hospital. Not only this, but the couple’s philanthropic giving also sees them donating 20% of their personal wealth to good causes. So what does the future hold for a man who seemingly has everything – a hugely successful business, a close family unit and a legacy of great charitable work? “I tell myself that as long as I’m enjoying it, I’ll keep going. The day I don’t enjoy coming to work is the day I’ll stop. It’s important that I leave knowing my business has a future, and that the best person for the job is lined up to succeed me, no matter who that may be.”

opposite:

Lord Harris says he won’t retire until the day he doesn’t enjoy working any more. this page:

Carpetright’s impressive warehouse.

www.harrisfederation.org.uk

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We are a Family Firm that stimulates ideas and dialogue for family businesses Talk to us about how we can help you create success for the next generation. Throughout the UK there is growing recognition of the contribution that family businesses make to the national and global economy, in terms of employment,

revenue generation and support for the community at large. By continually striving to offer more, and better, to the family business community, our goal is to become THE leading resource for current and future generations of family businesses.

Meet the Firm

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THE COMPANY OF

ANGELS Angels is the UKâ&#x20AC;&#x2122;s largest and longest established professional

costume and fancy dress hire company. Amalia Brightley-Hodges meets the 5th and 6th generation of the Angel family at the helm of the business today.

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ince the 19th century, Angels has had its shop at 119 Shaftesbury Avenue, London and now also operates the UK’s mostvisited online costume website. Founded in 1840, the company remains a family business with fifth generation Tim Angel OBE currently at the helm along with his three children, Daniel, Emma and Jeremy. Angels is the world’s longest-established supplier of costumes to the film, theatre and television industry. The Angels shop became popular with theatre actors who, at that time, had to purchase their own clothes and costumes for auditions and performances. It was Morris Angel, the company’s founder, who allowed actors to hire, rather than buy, their outfits – the first man to make such an innovation. With the advent of cinema, the Angel family made their second major diversification by supplying costumes to the fledgling movie industry and, through the primary company, Angels The Costumiers, has continued to be a quiet and constant success story within the British and international film industry.

acquisition of principal competitor Bermans in 1992. Tim is a former Governor of the BFI and former Chairman of BAFTA, and was appointed an OBE in 1999 for services to the Film and Television Industry. Tim’s wife Eleanor, and children Emma, Daniel, and Jeremy, all work within the Angels business. Tim’s children Emma, Daniel and Jeremy head up three different arms of the business. Emma oversees the fancy dress, splitting her time between the Angels Fancy Dress shop on Shaftesbury Avenue, a West End landmark for the past 150 years, and the Angels headquarters in Hendon, North London. Having worked elsewhere previously, Emma fell into her role unintentionally when her father, whom she is very close to, asked her if she would join the business, Emma didn’t need to think twice about her decision.

Award winning business Since 1948, when costumes supplied by Angels first received an Academy Award for Laurence Olivier’s Hamlet, Angels The Costumiers has followed suit a further 32 times. Films that Angels has worked on that have received Oscars for ‘Outstanding Achievement in Costume Design’ include Cleopatra, Titanic, Gladiator, Memoirs of a Geisha and, most recently, The King’s Speech. Six generations on and Angels is now the world’s largest costume house following the acquisition of the BBC costume department comprising over one million costumes. With headquarters in Hendon, Angels now boasts over five million costumes on eight miles’ worth of hanging rails. Tim Angel OBE joined the company aged 17 in 1966, starting out as a trainee in amateur theatre, with his first TV work on The Onedin Line. Since becoming Chairman in 1986, Tim has overseen the growth and diversification of Angels. Today, Angels undertakes over 3,000 film, TV, and theatre projects every year, and has an annual turnover above £10million. Under his guidance, the company has remained one step ahead of the demands of an ever-changing industry. Tim consolidated the company’s move into TV (echoing his grandfather’s pioneering shift from theatre into early movie work), and masterminded the

“Getting outside experience was crucial for me, I never had any intention of joining my father but soon found that no other job could offer exactly what I wanted. It then became clear that I could carve out a place for myself at Angels and create a role perfectly suited to my skills,” explains Emma. At the young age of 21, Emma took on a managerial role and their fancy dress website is now the most visited fancy dress site on the internet. Jeremy also explored other options before joining Angels as Creative Manager, overseeing the company’s branding, marketing and website. Initially, Jeremy didn’t want to join the family business and went into the world of film but found that it was not very well paid and not what he wanted to do. He was then brought in

opposite page (l-r):

Jeremy, Tim, Emma and Daniel Angel. this page:

Just a handful of the accessories in the costume hire departments.

GENERATION SPRING / SUMMER 2012

HAPPY ANNIVERSARY! Whether you have been in business for 20, 120 or 200 years, your success deserves to be recognised. We design and produce spectacular and innovative books that will capture your achievements. The process is simple and enjoyable, we will: • • • • • •

Hear your story and identify special landmarks and triumphs Collate all material including photographs and memorabillia Write or edit your story Design something amazing and unique Use the latest printing, finishing techniques and materials available Present the book in its own presentation box

Our job is to help your business shine.

For further information visit For further information visit www.familyconstitution.co.uk/anniversaries www.familyconstitution.co.uk/anniversaries Foraaprivate privateconsultation consultation For callcall Anitaon on07815 01732497417 220120ororemail email Anita Anita@brightleyhodges.com Anita@familybusinessplace.com

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be aware of the differences in how you treat each other at home and at work. Problems should be shared at work, arguments dealt with and then everyone should move on and be able to have time to switch off.”

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on this page:

The Angels warehouse boasts over eight miles of costumes for the film, theatre and television industry.

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to help Angels with a project which resulted in him being offered a full time job. “At first, I thought it might be difficult to work with my father, but soon found out that I had no reason to be concerned as I was given my own space, and left to run my own department. If anything, we all have a deeper relationship now with a mutual respect for one another as colleagues,” says Jeremy. In complete contrast, Daniel always knew that working for his father in the costume department of Angels was where he wanted to be. “I had always loved coming into the business as a child during the holidays and, as is traditional in most Jewish families, I joined the business straight from college. “I knew that it was exactly what I wanted to do and could make a huge success of it,” beams Daniel. Daniel now heads up the entire costume department and is first port of call for any client wanting costume hire for film, TV or theatre. The three siblings quickly learnt that relationships do change once you become colleagues and they believe that the family business is only a success because of their close family unit. Emma believes that, “You have to

If anything, we all have a deeper relationship now with a mutual respect for one another as colleagues

Tim Angel is well aware of the impact that family relationships can have on the business and its success. But it’s quite clear that this is a family who still know how to have fun, who treat their other employees as part of the Angel family and who are highly respected by everyone in the industry. The success of this family-run business is down to the strengths of the people who run it, three young entrepreneurs with a hunger to succeed and to carry on the business that their great great great grandfather started back in 1840. www.angels.uk.com

GENERATION SPRING / SUMMER 2012

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LIVING AND WORKING BY FAMILY VALUES Founded in 1984 following the management buy-out of another small printing firm, Matthews the Printers is a true family affair. Amalia Brightley-Hodges meets current CEO Dennis Ott and his daughter, Gemma Firth.

atthews is now one of the UK’s leading print companies specialising in providing clients with quality marketing and promotional materials, using a variety of print processes. Dennis’ two daughters, Gemma Firth and Victoria Ott, are involved in the business. Gemma is Marketing and Business Development Director and Victoria works in the account management team. Dennis’ wife Elaine also works within the business and is their Health and Safety Officer. Dennis explains why family values set the business apart from their competitors – “Integrity, honesty and fairness are three values at the heart of my family and the Matthews business itself. I think these are clearly shown throughout all areas of our operations – including client servicing, supplier liaison and team relations. Creativity and innovation are also important values to the family and the business. We encourage innovation, continuous improvement and learning – values to which the Ott family also hold true.” Dennis believes that the best aspect of being part of a family business is the positive working

GENERATION SPRING / SUMMER 2012

culture that surrounds it - “There is a greater level of support and nurturing at many family businesses because the company is looked at as an extended member of the family. The shared passion that family members have to achieve the business aims is infectious and this filters down to the rest of the organisation, as well as to clients.”

Taking it personally “In terms of negatives, because the culture is so open and transparent it means you can take things very personally as you treat all your team like family. When someone leaves or retires it can be hard to swallow because it’s hard to say goodbye to them. Delegation can also be difficult... There is the potential for work / family time to merge and you have to be strict with your boundaries. Sometimes you can be sat around the table for Sunday lunch and have to stop yourself talking about a new project or sales figures for that month, but sometimes the best ideas are found by having discussions outside of the office/work environment,” says Dennis. Dennis’ daughter Gemma says that they use their family business to their advantage, “We always promote the business as familyrun because people associate it as a positive as opposed to a negative. As you are part of the family there is the belief that you will do everything you can to ensure their job is of the highest quality, and this is very true. You are passionate about every job that goes through the plant and you want it to be the best it can be.

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“

“Integrity, honesty and fairness are three values at the heart of my family and the Matthews business itself. These are clearly shown throughout all areas of our operations

“

far left:

CEO of Matthews the Printers, Dennis Ott. left:

Marketing and Business Development Director, Gemma Firth. above:

One of Matthews’ printing presses.

We work very hard to ensure that our employees know when we talk about the family business we don’t just mean the Ott family, we mean the business family, which each employee is very much a part of

“

We promote it through our website, in our direct marketing communications and also entered the Red Ribbon Family Business Awards this year.” Matthews also employ a number of other family members within their team; these includes the Savidge brothers who work in the office, the Besgroves who are father and son and work in the factory and studio respectively, the Nicholls who are also father and son and work in the factory and Pat and Sarah, a mother / daughter team on the factory night shift. “During these times we face exactly the same challenges as everyone else; we have to ensure we are continuously meeting the needs of our clients and change our services and ways of working to meet these requirements. We have to remain innovative and continue to try and stay ahead of the industry to ensure that we are at the forefront and constantly exceeding our clients’ expectations,” explains Dennis. Gemma adds, “In addition to these business challenges, the one that potentially affects a family business more is the perception of the other employees. If you employ people outside of the family you have to be careful that they realise they are just as much a part of the

business as the family is. The business needs a variety of skills to operate and function and the family will not always have the right skill set. The minute the employees feel it’s all about the family and what they get, things can go wrong, and that’s where mistakes and problems arise. We work very hard to ensure that our employees know when we talk about the family business we don’t just mean the Ott family, we mean the business family, which each employee is very much a part of.” Gemma, 30, and Victoria, 26, are the next generation ready and waiting in the wings. Victoria is at the start of her career and learning about business, but is very passionate about Matthews. Gemma is eager to introduce

new ideas to the company and ensure the values that their father formed Matthews on will be continued into the next era for the organisation.“You will need to show passion for what the business does. Also, just be aware of the dynamics and try to avoid any office politics” ends Dennis. www.matthews-printers.co.uk

GENERATION SPRING / SUMMER 2012

Medway Bridge Marina Ltd Beneteau Flyer GT44

Beneteau Flyer Gran Turismo 44

Photo : JEROME KELAGOPIAN Portofino - Septembre 2011

Designed for cruising, providing space, power and speed whilst retaining a size that remains very easy to manoeuvre. This model has Stern-Drive propulsion combined with the Air-Step® hull, exclusive to Beneteau, enabling safe cruising even at high speeds in rough seas. Fully equipped with generator, passerelle, heating, Volvo Joystick control and full Raymarine package inc radar. Normal price £400,000.00 inc VAT One limited edition model available

£283,333 ex VAT

Beneteau Antares 8.80

Beneteau Antares 8.80 NEW Limited Edition Olympic Boat with Suzuki 250hp outboard. Fully equipped with Lowrance multi function GPS, electric windlass, bowthruster, heating, hot water, microwave, wood cockpit floor, full cockpit canopy, wood cockpit table and mooring kit. This outboard powered cruiser is ideal for memorable fishing trips and coastal cruising. Featuring a very large saloon, an owner’s cabin and a separate bathroom makes life on board comfortable and second double cabin for guests. Only one available at this price

Photo : Mike Jones - Ile d’Yeu - Septembre 2011

£66,900 ex VAT

Medway Bridge Marina Ltd.

Manor Lane, Rochester, Kent. ME1 3HS

www.medwaybridgemarina.co.uk The Striper 1851 Walkaround gives you incredible value thanks to a versatile design that’s great for fishing, family or cruising. Self-bailing decks send water overboard. A 22-inch freeboard is praised by anglers, as are the dual 76-quart fish boxes and an aerated 30-gallon live well. For quality family time, you’ll appreciate the swim platform, bucket seats and a versatile cabin. A 62-gallon fuel capacity lets you trek long and far without having to stop.

1851 Walk around

Prices starting from £25,000.00 ex VAT with a Suzuki 115hp 4-stroke outboard.

onsole 2305 Center C

The new Striper 2305 Center Console provides upgraded features that make it more familyfriendly. Improved diamondpleated non-skid surfaces, deeper freeboards, smoother lines and interior accents provide more comfort and style. When it comes time to cast a line, this rig is large enough for heavy offshore stand-up fishing, has abundant workspace and flush mounted stainless steel rod holders.

Prices start from £39,995.00 ex VAT with a Suzuki 200hp 4-stroke outboard.

Tel 01634 843576 . Fax 01634 843820 Email info@medwaybridgemarina.co.uk

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Leading from the front Our experts explore the importance of good leadership and management in a family business, whether it comes from within the family or from an independent outsider.

Unlocking the full potential of an independent NED David Johnson discusses the appointment of independent non-executive directors in a

Specialism Recruiting non-family executives Profile David works extensively with family-owned businesses in the UK, advising on a whole range of family business issues. www.leadersmatter.com

family business

Corporate governance The recruitment of non-family senior executives and Board members, including non-executive directors, into a family business is a challenging and complex operation. A successful and long-term appointment requires skill, experience and understanding. The costs of getting it wrong can be huge, both in financial and emotional terms. The appointment of independent non–executive directors (NED’s) is becoming more commonplace amongst family-owned and family-controlled businesses. The recognition that these appointments can bring enormous benefits to organisations such as these is felt not only within the businesses themselves but also amongst their business partners and their financial and legal advisors. They are often the first non-family Board members appointed. There are recognised good reasons why businesses will appoint independent directors. Broadly these fall into three main categories;

Growth and challenge Often, a family-owned business will outgrow the skills and experience of its family management. Naturally, such businesses will normally want to maintain family executive control but recognise the need for extra functional or sector/market skills. A good example of where expansion

GENERATION SPRING / SUMMER 2012

The introduction of independent directors can also greatly enhance the professionalism of a company, bringing more scrutiny to decision-making, helping to bring in processes around strategic planning and performance-monitoring, and ensuring the integrity of financial reporting.

“

Independent NED’s are often the catalyst for increased sophistication in corporate governance in family business. They can create a climate of openness, inclusivity, and improve information flow generally

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David Johnson, Leaders Matter

may outpace family management is in the international arena in which rapid growth is possible but the business risk is commensurately high. Some family-owned businesses experience growing complexity in the relationship between family management and business management and find that the appointment of independent NED’s will help to bring balance to that vitally important equation.

Independent directors can also be extremely helpful in the situation where a family business might be looking for a total or partial exit or intending to bring in partners or co-investors. Such potential partners are often reassured by the presence of objective and knowledgeable independent thinking, usually supported by the NED’s extensive personal experience. Independent directors can also help to balance or counteract particular dominance in the boardroom that may be present in any one individual, often the founder or chair of the business.

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Family succession There are many independent NED’s who are interested in joining the Boards of family businesses. They are often attracted by the long-term approach to business

“

They can also be useful in bringing diversity in gender, age, or ethnicity to a Board; a benefit which may be much more difficult to achieve with executive directors. Independent NED’s are often the catalyst for increased sophistication in corporate governance in family business, which may have previously been lacking. They can create a climate of openness, inclusivity, and improve information flow generally. They will also encourage the sharing of corporate responsibility through the establishment of governance tools such as audit, nomination and remuneration committees.

NED’s can also be useful in bringing diversity in gender, age, or ethnicity to a Board adopted by family-owned companies; it enables them to help shape a family business over a period of time, and to escape the short-termism and the

overpowering need for compliance in publicly quoted companies. There are risks, however, on both sides. As to whether expectations are met, that the family business is fully committed and, importantly, that sufficient care has been taken in the identification and recruitment of the best and most appropriate person available. Overall, though, the appointment of effective and relevant independent NED’s can be a huge boost to the running of a family business when it’s ready to make that next big step in expansion and sophistication.

GENERATION SPRING / SUMMER 2012

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Have you got what it takes to be a good leader? Paul Andrews from Family Business United and Penny Webb from Paul Andrews, Family Business United Specialism Advising family business leaders Profile Paul works with family business and their advisers to help them succeed. www.familybusinessunited.co.uk

Familias & Company discuss what qualities are important in a good family business leader. 1. Reflect Continuously – The ability to take time to reflect on your own strengths so that you can build on them. Reflection helps to build self-awareness and enable family business leaders to grow based on what they are good at. 2. Have a Clear Vision of Success – Good leaders have a good idea what they want to do and set out on a journey to achieve these goals. 3. Collaborate – Good leaders partner and collaborate with individuals who can enhance the overall competencies of the business. 4. Engage with People – You can only be a good leader if people are prepared to follow you and engaging with people is essential. 5. Display Empathy - Clearly demonstrate that you have the ability to put yourself in someone else’s shoes. Ask more than tell, enquire more than you advocate. 6. Stimulate Creativity – Good leaders ask ‘what if’ and do not accept the status quo. They make time during meetings to push the boundaries of accepted wisdom as an exercise in stimulating creativity. 7. Dismiss the concept of a WorkLife Balance – Good family business leaders recognise that it is impossible to separate work from day-to-day living. The key to success is developing a life that allows you to be authentic on a 24/7 basis.

8. Create Alignment – Good leaders are able to ensure, on a continual basis, that every level of the organisation understands the strategy and their role in its execution. 9. Appreciate Cultural Differences – Good leaders need to recognise that what works in the West doesn’t necessarily work in the East. They tailor their messages and, moreover, seek ways to learn from those who are different. How can a family leader ensure that sufficient due diligence is done to assess a firm’s readiness to work and succeed in a different culture? 10. Be Decisive – It is essential for any family business to enable individuals to make decisions and Boards need to make sure that decisions are made. A good leader identifies priorities and holds others to account regularly. 11. Build a Support Network – Due to the nature of the role and potentially the need to manage different stakeholder groups, a good leader needs to build an external support network to help them keep things in perspective. 12. Be Generous – Good family business leaders have a generosity in what they do and are generous with their time, helping others in their own careers too. They are ‘Servant Leaders’. They know they are there to help others to succeed and spend more time worrying about what others need from them. 13. Admit Mistakes – It takes courage to admit when something has gone wrong but good leaders are prepared to stand up for what they believe in and admit when things have gone awry. 14. Be Proud and Stand Tall – Family business leaders that succeed make no apologies for their success and this is a great skill. Self-deprecation helps no-one. Teams need to be led and have clear direction and leadership, and good leaders do not apologise for what they have achieved.

GENERATION SPRING / SUMMER 2012

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Looking after number one Family business owners are often guilty of putting other people’s wellbeing before their own. Our experts discuss the importance of looking after your own health.

Simply relax

Tim Box Specialism Remedial hypnotism Profile Tim works with a variety of clients to tackle issues which often affect performance at work www.headwayhypno.com

Every day I find myself telling people a simple truth: we cannot control what challenges life throws at us...all we can hope to control is how we respond to these challenges. Most of us these days realise the importance of looking after ourselves not just physically, but mentally and emotionally as well. However, few of us seem to take heed of the advice we would readily give to others.

Where is the off switch? As a remedial hypnotist I see a lot of clients who run their own businesses - often a family affair. Unfortunately, when we run our own business, we can tend to get too committed. Every day I see people who are mentally exhausted, emotionally drained, and simply unable to switch off.

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As a remedial hypnotist I see a lot of clients who run their own businesses - often a family affair. Unfortunately, when we run our own business, we can tend to get too committed. Every day I see people who are mentally exhausted, emotionally drained, and simply unable to switch off.

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Running a family business in particular can make it even harder to switch off. Even though we might want to shut out the constant grind of work, our situation may prevent that. After all, most people get to close the door on business at the end of the day. We get the chance to clear our heads...talk about something else... maybe vent a little. Have you ever treated your partner to an end of the day rant about those idiots in the office? It made things a little better, didn’t it?

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However, what if your spouse IS the idiot in the office? What if they already know all about your day because they were there? What if no matter where you look... friends, family, partner...all you see are work colleagues. As a remedial hypnotist I encourage relaxation during a session because relaxation is enjoyable. It is a relief and may well be something that the client hasn’t done in some time. It’s not a prerequisite of hypnosis...but it’s a lovely (often suggested) by-product. In reality by getting someone relaxed I have simply changed a pattern of thought that has been running. Our subconscious mind runs countless patterns all the time. They run automatically, and as such we struggle to consciously control them. When you are hypnotised you become subconsciously dominant, and this affords the hypnotist the opportunity of delivering a message to the part of you running the unhelpful patterns.

So what is that message? The message is whatever the client has told me they want. You want to sleep better? You want to be able to switch off? You want to be less stressed...more confident as spokesperson for your family business? You want less doubt...more vision? These are all patterns of thought: our subconscious mind believing it is doing the right thing. That’s right...it’s not the outside world we are struggling with...it’s ourselves. So, like some kind of psychological postman I deliver a message from your conscious to your subconscious. Most of the time your subconscious is quite pleased to hear it...and more than happy to comply.

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In the air

Ian Oakley Specialism Environmental technologies Profile Ian advises clients on how they can create a healthy working environment. www.ianoakley.co.uk

Some scientists believe that the entire field of medicine has to change its point of view if we are ever going to solve the riddle of human disease, including the arterial lesions of heart disease, the tumours of cancer and the degenerative illnesses such as arthritis, lupus and MS. The true cause of disease of every type is the polluting of the body’s basic environment by the foods we are eating and other toxins, shifting the body from the healthy vibrant, alkaline state of youth, to a dull, low-energy acid state, so creating a climate in which microbes flourish and begin to systematically and slowly decompose the body. Some have trouble accepting these findings, something has to be wrong, how could human illness be that simple? I believe that it can, and whilst there are many things that can contribute to the rise in degenerative diseases, the environment and the way that we live our lives are certainly two of the main factors. In the early 1990’s, degenerative diseases impacted 1:20, in 2000 it was 1:10, in 2010 it was 1:5 and more recently

we hear about it being 1:3, and this has to stop, we have to change what we are doing. Who was it that said, “If we continue to do what we have always done, we will continue to get what we have always got”? Well society has certainly proved this right. The World Health Organisation (W.H.O.) regard air quality as their No.1 environmental concern. We all continue to be challenged by even more airborne chemicals, toxins and bacteria, with the difference that now we can take control of our environment by changing ‘our level of normal’, so whether at home, office or even travelling on boat, plane, car or train, we can remove these harmful toxins and protect ourselves. I have seen many people not only improve their health, but even overcome challenges to the astonishment of their consultants. “The doctor of the future will give no medicine, but will interest her or his patients in the care of the human frame, in a proper diet, and in the cause and prevention of disease” - Thomas Edison.

Body issues

Estelle Gillett Specialism Personal wellbeing Profile Estelle puts her clients on the road to a healthier body. www.dietkent.com

How many of us can hand on heart say we are 100% happy with our body? There’s always room for a little improvement, whether it’s making sure you eat your 5 a day, cutting out those sugary snacks or motivating yourself to hit the gym after a long day at work. So why does our world struggle with wellness? And why do most family business owners put their own health long after business, family and employees? Your body consists of trillions of cells which all need a certain amount of nutrition every day. Actually it’s around 114 nutrients. Your very intelligent body uses that nutrition to give it energy and to regenerate. So energy comes from good fats, complex carbohydrates and proteins. Then the body uses various other nutrients such as vitamins, minerals, amino acids etc to regenerate. So when you start your day it is important to refuel your body with all

the nutrients and water it has used in the previous 24 hours. Breakfast is the most important meal of the day, as your body won’t have had any fuel for the previous 12 or more hours. A balanced healthy breakfast should supply the body with vital nutrients, and energy without increasing the blood sugar and insulin levels. It also helps to avoid cravings for simple carbs throughout the day. In this way your appetite stays under control and the body uses its fat stores for energy. A balanced diet is essential for providing our bodies with the nutrients required to make them function optimally. So start with a healthy breakfast: it kick starts the metabolism and provides balanced energy. Eat at least 5 servings of fruit and vegetables a day, drink plenty of water, 2 litres minimum, and Include fibre and protein in your daily diet, remembering to take regular exercise.

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FAMILY CONSTITUTION BOOKS Bringing together all of the family’s thinking, plans and aspirations that will stand the test of time, The Family Constitution Book is the critical point of reference for: • • • • •

Employing family members When the inevitable happens: Rights and Responsibilities The unanimous principals of the entire family Greater harmony Inspiring future generations

For further information visit For further information visit www.familyconstitution.co.uk www.familyconstitution.co.uk For privateconsultation consultation For aaprivate callcall Anita on 07815 01732497417 220120ororemail email Anita on Anita@familybusinessplace.com Anita@brightleyhodges.com

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The importance of putting your best foot forward Do your customers know the family behind the business? Do you effectively portray your values and vision? Our experts believe it’s all about you.

Anita Brightley-Hodges, Family Business Place Specialism Branding, Marketing and PR Profile Anita works with family businesses across all areas of marketing and branding to make their business shine www.familybusinessplace.com

In the beginning we just worked dammed hard getting our businesses off the ground. We were honing our skills, getting the business in and juggling plates. Frankly there wasn’t much time to sit and think about ‘me’. But 2, 5, 10, 15 and 20 years down the line people sort of know who we are, what we do, and what we stand for. They know we are working with our husbands, wives, children and other relatives in a family business. And as the head of the family business no one had heard of the term ‘personal brand’. Branding, mmmm isn’t that a logo that we stick on to our letterheads, vans, shops, packaging and offices? And isn’t that something that happens in the ‘marketing’ department? And it definitely isn’t anything to do with ‘me’. I just want to get on with doing my job, making sure everyone else does theirs!

Harness the power Does this sound a familiar story to you? The fact of the matter is, we all prefer to just get on with the job, but we just don’t have the confidence to take a step back and come out of our comfort zone, into the more public, professional eye. We underestimate how much added value we could bring to our businesses as the head, ambassador, expert, motivator and inspirer. Customers want to know so much more about the head of the organisation they are doing business with. They are genuinely interested in the personality behind the brand and intrigued to learn about the family business aspect. It all adds to the enjoyment and certainty of working with people who are passionate about their business and proud of their achievements.

Now package all of this good stuff up, bring your light from under the bushel and, before you know it, you’ve got a lot more to offer than merely delivering products or services. Its your ‘personal brand’. If I’m honest, it’s not easy but, with a little help from a personal coach, you can work on understanding the power of ‘You’. This will give you confidence as it always takes someone else to say how brilliant you are! Then make a plan as to how you are going to get out there. Do you need help with presentation skills, do

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Customers want to know so much more about the head of the organisation they are doing business with

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It’s all about confidence

you need to work with a personal assistant to tease out of you your hidden expertise, gems and thoughts. What next? Is all that social media stuff just too much trouble and oh so time consuming? Not if someone you trust enables you to connect to networks via Twitter, Facebook, Linkedin or YouTube. Someone who understands you and just gets it. It’s the easiest way to be heard, make connections and start a dialogue with other people in other networks. It gets you out there. It’s free and, with the right strategy and good planning, you can build it into your working week. Social networking is also a way to be in control. Unfortunately, if you’re not saying it, then someone else will on your behalf and that’s not always a good thing. So use it to your advantage. The next generation of family members are Linkedin, Facebooked and Twittered to the hilt - that’s 24/7 and you’ve got to be in it to win it! So take a deep breath and get on the bus. You never know where it might lead you.

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It’s personal - be more of who you are

Mary Spillane Specialism Personal Branding Profile Mary works to bring out the best in senior business executives and CEOs. www.maryspillane.com

Every successful business knows the importance of branding. From the corporate brand (Apple) to the product brand (iPad2) to the personal brand (the Apple Genius), branding is a critical component to the customer’s purchasing decision. Managing your personal brand is a business in itself and one that many leaders invest time and money protecting. If you think that personal branding is relevant only to celebrities like Brad Pitt, Simon Cowell or Beyoncé, think again. Today, most business leaders as well as those up and coming stars following in their slipstream spend time to reflect on, define and consider how to project and live their brand values. A good brand, like a good leader, should also be authentic. Personal branding is not about trying to be someone who you are not rather, more of a case of being more of who you are capable of being. Integrity underpins any good brand as it does any good leader. And you know it when you see it. Personal branding is the process by which we market ourselves to others. As a brand, we should use the same strategies that make consumer or corporate brands appeal to others. Each of us can build brand equity just like a successful product. Just think of the brand equity Steve Jobs had in both life and death. Consider how Richard Branson continues to build brand equity for Virgin. However an individual can also deplete brand equity: James Murdoch, springs to mind.

The family brand: an asset or a liability? Family-owned businesses are built and sustained on the values of the founders, then their offspring and subsequent generations. Families who fail to reassess those values from time to time…in light of ever-changing market conditions and competition…do so at their peril. That

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is not to say that key values like trust, reliability, excellence are not timeless, rather that brands need additive values to remain competitive. For example, today many established brands have added ‘innovative’, ‘global’ and ‘dynamic’ to their values to show they can be as fresh and creative as a sexy start-up.

Your people are the brand But just as the corporate brand needs refreshing and revamping from time to time, so too do the people who represent the brand. A family-owned German manufacturing firm is currently embroiled in a far too public battle, with its younger generation sparring with their elders about how to pitch the business in new markets. The former are pleading with the latter not to visit potential international customers or JVs, saying that they project ‘all the wrong things’. “My father and his brothers are just too old-fashioned. We are now about innovation and speed and are willing to try new things. But you would never believe that when you meet them.” This was the CEO’s daughter talking…the Global Marketing Director.

Business and personal brand: synergy required I work with businesses of every size from start-ups to FTSE 100. All struggle with the challenge of their key people projecting the brand consistently in all their dealings both internally and externally. An effective brand is never formulaic. The days of the ‘corporate uniform’ are gone. It’s been 25 years since IBM insisted that all their staff (mainly men) wore dark blue suit, blue tie and white shirt. But business dress does matter, whether it be a hip casual look or what passes for professional business attire in 2012 for both men and women. Everything that projects the brand needs to be lived through your people as well. That includes ways of working, how people dress, communication, interacting with stakeholders, customers and suppliers to name just a few.

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Brand it like Beckham

Profile Jeremy brings his clients into the spotlight through great photography

Perhaps the most iconic and emotive image is that of the family. In a home where the family identity is strong, the story of the family is told through these images. They occupy the altars of the house, on mantelpieces, window sills and side tables. Theyâ&#x20AC;&#x2122;re both comforting and reassuring images. There is a security and a continuity of generation that is clearly portrayed through the photographs. The images are very powerful tools that work in an instant and speak volumes to the viewer.

www.rgbdigital.co.uk

Your people are the brand

Jeremy Bail, RGB Digital Specialism Corporate Photography

It is vital then that any family business should take advantage of our obsession with images of the family, and use intelligent communication through photography to promote the brand. This is where a family business has a huge advantage over any other commercial organisation. Throughout history, in war, it has been vital for each side to dehumanise the other, for the combatants to do their job and follow orders. As soon as they can identify with their enemy, the task of war is much more difficult to execute. The same is true of business. As consumers, we are far more likely to buy from a brand we can identify with, rather than an anonymous corporation. Smart companies know this and sell to us as individuals with careful targeting of age and demographic. On both counts the family business is ahead. We all come from some kind of family (good or bad) and can â&#x20AC;&#x2DC;readâ&#x20AC;&#x2122; the messages that such images portray. If we see the head of a family business, there is a natural association with some kind of parental figure, someone whom we can

trust and respect. Immediately the business is personified. We can relate to it. It is like us in some way. The family is the brand. The Beckhams are a brand. The football, music, fashion, cosmetics and car design (the new Range Rover Evoque, allegedly) are all secondary to the brand, which is the people themselves. Their story is told through a whole array of complex and evocative images that hold our attention. Even when a business does not have a family, they just make one up. BT has been giving us the progressing narrative

of a modern family with its complex issues, and interwoven with this they sell us broadband, home phones and mobile services. All of these would be so dull without the family vehicle on which to illustrate them. Get the imagery right and it will give you a huge advantage over your faceless rivals.

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"Farrers lawyers act as counsellors in the true sense." Chambers & Partners 2011

Farrer & Co is a modern London law firm with a long tradition of working with successful families, supporting and advising them on a wide range of issues spanning both their corporate and personal needs.

For further information please contact Richard Lane, Head of the Entrepreneurs & Family Business Group Tel: 020 3375 7548 Email: richard.lane@farrer.co.uk

www.farrer.co.uk

WEST COUNTRYâ&#x20AC;&#x2122;S FINEST

Classic Canes Stylish support

St Austell Brewery A head above the rest

Yeo Valley Fresh from the valley

Clinton Devon Estates Green responsibility

Gregory From A to B

RJ Balson & Son A fine cut of British history

Fudges What a treat

Paragon

Photo Credit - VisitCornwall

Squeaky clean since 1918

west country’s finest

Delving into the West Country Dani Saveker, CEO of the International Centre for Families in Business, shines a spotlight on some of the West Country’s many hidden gems. Although the West Country is predominantly known for its cider production there is more to this part of the country than meets the eye.

The West Country Factfile: Regions Bristol, Gloucestershire, Somerset, Dorset, Wiltshire, Devon, Cornwall and the Isles of Scilly. Known for Cheddar cheese, Cider, Cornish pasties and cream teas, fishing, tourist destination.

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The West Country is very close to our hearts at the International Centre for Families in Business (ICFIB). After all, this is where life began for us as an organisation working to ensure the best possible support is available to family businesses. Over the years we have had the honour and pleasure of helping many West Country family-run businesses. This has included working through a wide range of issues such as succession planning and implementation, creating family charters, developing their strategy as a family and specialised consultancy, as well as training and accrediting many professionals within the region who work to support them. What’s unique about family businesses in the West Country? Of course every family business is born from a unique mould and requires time, patience and understanding. We know that there are particular industry sectors that tend to have a higher percentage of family ownership, such as tourism, agriculture, fishing, food and drink production – all of which play a significant role within the West Country. There are over 25 cider producers in Somerset alone, many of them being small family businesses. Large producers in the West of England include Thatchers Cider in Sandford, which is still a family business after more than 100 years. From our work with family businesses in the region one of the stand out areas for us has been the importance that the rural family businesses can have within their direct community – in fact they are very often at the heart of their local community. The impact that they have

on local economies, employment and sustainability is vital. However, it can also be very complicated when a whole community, never mind just the family, lives and works together. Family businesses existing in these micro-communities often feel that their lives are wrapped up in the business and sense a huge amount of responsibility not just to their own family but also their employees and wider community. They share a passion for philanthropy and focusing on a greater cause, which is something to be admired and supported. For all of these businesses it’s about making it through the day in one piece and with relationships and communities intact.

Dani Saveker, CEO of ICFIB www.icfib.com

west country’s finest

A head above the rest Founded in 1851, St Austell Brewery is one of the oldest businesses in Cornwall. Still family owned, today it is one of Cornwall’s largest private companies with 1,000 employees, 169 pubs and an annual turnover of over £90m.

Stylish support The story of walking stick specialist Classic Canes began in 1977, when Ben and Diana Porter bought a romantic but ruined hunting lodge set in neglected woodland in the farming county of Somerset. The house was rebuilt during the early 1980s, and large areas of the woodland converted to the centuriesold system of ‘coppice with standards’. Underneath the large beech and ash trees, the sustainable forestry technique of coppicing produces a never-ending supply of naturally regenerating raw material suitable for the production of walking sticks.    Enquiries among local shopkeepers revealed a demand for good quality walking sticks, and so Classic Canes was founded in 1982 as a walking stick supplier to this market. Traditionally, walking sticks are sold through leather goods and country clothing shops, saddlers, tobacconists, department stores and quality gift shops. In recent years, healthcare shops, mail order catalogues, handbag and accessories

stores, internet retailers and garden centres have also become successful sellers of walking sticks. Classic Canes now stocks over 650 models of walking sticks, folding canes, seat sticks and umbrellas, as well as the all-important accessories such as cord wrist loops and replacement rubber ferrules. Classic Canes are one of the largest and finest selections of walking sticks in the world. Available through stockists in over forty countries, Classic Canes represents the best of British style, elegance and practicality.   Classic Canes is now a secondgeneration family business. Whilst Ben and Diana still play important roles in the business, their daughter Charlotte Gillan became the managing partner in 2010. Other members of the family assist with duties as diverse as modelling walking sticks for catalogues to setting up the Classic Canes stand at trade fairs. Even the golden retrievers and other animals play their part, making this a true family business.  Classic Canes are thrilled to be celebrating 30 years in business in 2012.

The St Austell Brewery Company Limited was founded in 1851 by Walter Hicks, who mortgaged his farm for £1,500 to set up his business in St Austell. In 2001, they celebrated their 150th Anniversary.  The company remains in private hands with numerous Walter Hicks’ descendants involved as shareholders, employees and directors. They are one of the longest established of only a few independent family brewers left in the UK and are totally committed to continuing brewing and to retaining their independence.  Their pub estate began in 1863 when Walter Hicks bought the Seven Stars Inn in St Austell. This pub remains part of the thriving and growing estate which spans Cornwall, the Scilly Isles, Devon and Somerset.

To mark the Diamond Jubilee, St Austell Brewery, is launching an incredibly special limited edition ale. The aptly named Royal Diamond Imperial IPA, a strong fine IPA, has undergone secondary fermentation in Champagne bottles at the Camel Valley Vineyards in North Cornwall for that extra special lightly sparkling touch. www.staustellbrewery.co.uk

www.classiccanes.co.uk

GENERATION SPRING / SUMMER 2012

west country’s finest

Fresh from the valley Yeo Valley, the Blagdon-based, family-run dairy company, is the UK’s number one organic brand. Run by the Mead family, they have been farming in Somerset for 50 years. Starting with a tea room on the farm making home-made clotted cream and freshly baked scones, Roger and Mary Mead first used the leftover skimmed milk to make the very first batches of Yeo Valley yogurt. Since then the company has gone from strength to strength. THE BEGINNING In 1961 Roger and Mary Mead moved to Holt Farm set in the Mendip Hills, starting out with 30 cows, a few sheep and some arable crops. Within ten years the Meads opened up for customers to

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pick their own strawberries and built a tea room beside Blagdon Lake for people to relax in afterwards. In 1972 they first tried making yogurt with skimmed milk left over from clotted cream – it turned out to be a success, so they started selling it around the valley. YEO VALLEY IS BORN By the 1980s their new yogurt was proving very popular, and as the first supermarkets were developing the Meads had to produce more milk to keep up with the demand. When Roger sadly passed away in 1990, his wife Mary and son Tim were left to manage the 135-strong family business. The company continued to grow and by 1994 the Yeo Valley Organic brand was born, with milk coming from the Organic Milk Suppliers’ Co-operative (OMSCo) as well as their own herd of pedigree British Friesians.

SUSTAINABLE DEVELOPMENTS By 2007 there were 1,000 people at Yeo Valley, and the farms provided lamb, beef, eggs and vegetables for the staff canteens. As Yeo Valley farms are organic the Meads started the process of getting their gardens (at the centre of Holt Farm) certified too. They also finished converting Wills Barn to a sustainable building with features like solar panels, and opened it as their farm classroom. Last year saw the start of many celebrations for Yeo Valley. The Meads marked 50 years in the valley, and Yeo Valley won two awards: their third Queen’s Award for Sustainable Development, and the Good Dairy Award from Compassion in World Farming. Earlier this year, Mary Mead was awarded the OBE for services to sustainable dairy farming, and the Soil Association awarded them their Ethical Trade Standards logo.

west country’s finest

YEO VALLEY TODAY Yeo Valley now makes a tasty range of yogurts, ice creams, frozen yogurt, milk, butter, cream, crème fraiche and chilled dairy desserts. They only use British organic milk from their own herd of pedigree British Friesian cows or farms from the Somerset-based organic milk supplier’s cooperative (OMSCo), with whom they ethically trade.

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I am as passionate about dairy farming now as I was 50 years ago when we first moved to Holt Farm. I am proud of our British, family farm and believe that we should do the right thing to ensure the future of British dairy farming.

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MARY MEAD OBE

Although they do produce a lot of food at Yeo Valley to feed staff and visitors, whatever their farms and veg plot can’t supply, they get from other people in the valley or as close by as possible… preferring food metres to food miles. www.yeovalley.co.uk

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west country’s finest

Green responsibility The Clinton Devon Estates remain a family concern after 700 years and continue to champion local employment and heritage. Clinton Devon Estates comprises three separate estates - the Beer and Clinton Estates in East Devon and the Heanton Estate in North Devon. In addition to traditional farming and forestry operations, the Estates encompass 2,800 acres of the East Devon Pebblebed heaths, three business parks, residential property and a number of small businesses. The Clinton Barony, one of the oldest in England, was formed in 1299, after John de Clinton’s victory over the Scots at Falkirk in 1298. Many of the holders of the title were amongst the most eminent persons of their time. The link with Devon was made in 1550 when the 9th Baron Edward Clinton acquired land near Exeter. In the 17th century, the link was further established when the Clinton family became linked by

marriage to the Rolles, a notable Devon family. The Rolle family history can be traced back to 1519 when George Rolle, a London merchant, purchased land in the county, amounting to a considerable Estate in 1552. By 1883 the Rolle Estate was the largest in Devon. The Estates remain a family concern, and their commitment to the county underpins all activity, long-term planning and purpose. Environmental considerations are a key priority for the Estates. A variety of schemes and projects to improve and protect the local area, including the Heath land Management Plan for the East Devon Commons, river management and long-term forest plans.

Around 70 local people are directly employed by the Estates, with many other indirectly employed as contractors and professionals. The Estates’ businesses directly boost the local economy, spending over £3.5m with 1000 local suppliers. In working to meet the needs of a transforming countryside, their vision is to be amongst the leaders in the practice of 21st century land and property management, whilst preserving the Estates’ heritage and environmental assets for future generations of the family to take forward.

employees and an annual turnover in excess of £100 million. Still family-owned and operated, it has gained a reputation for delivering consistent, competitively priced and reliable services to a broad range of diverse customers. Gregory Distribution work alongside Exeter City Council, the Express & Echo newspaper and around 20 of the city’s schools in the ‘Green Team’ initiative. It

is a project that raises awareness about environmental issues, encouraging staff and pupils to do their bit to help the planet. Gregory Distribution staff regularly visit the schools and are able to see each ‘Green Team’ progress in their ventures, whilst promoting awareness of what they do in the distribution industry.

www.clintondevon.com

From A to B Archibald John Gregory started the business we now know as Gregory Distribution in 1919, hauling coal from the station to a local wool factory with a horse and cart. Nine months later, the horse died and was replaced by a 2.9 litre, 4-cylinder Model T motor lorry – the beginning of the Gregory family’s entry into the motor transport industry. Today, the company has migrated out of the South West and is serving a number of national brand names. Gregory Distribution now operates from 17 sites as far afield as Scotland and West Cornwall. They have 450 trucks doing 40 million miles a year, 1,250

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www.gdl.uk.com

west country’s finest

A fine cut of British history Recently identified as the oldest family business in the UK, RJ Balson & Son continues to trade just streets away from where it all started. Hundreds of years, and 25 generations later, the Balson family continues to trade just a few streets away from where their first market stall was set up in Bridport. It has been identified as the oldest family business in the UK. When asked the secret to his success, current owner and Master Butcher Richard Balson put it down to being at the “heart of the community”. “It’s a meeting place, some people don’t even buy anything, they just want to come in for a chat. Coming to our butchers is an experience and a joyful one, we have a laugh and a joke and talk a bit of gossip, we’ve got lovely customers.” Richard and his brother-in-law, Rudi, were trained by Richard’s father Donald Balson. He started with the firm

What a treat Fudges was founded by Great, Great Grandad Percy Fudge in 1926 and the company have worked hard to preserve his legacy, adapting his award winning savoury and sweet biscuits, delicious luxury cakes and indulgent treats to suit today’s discerning tastes. It’s something that is done with a dedication and care that is rarely found. Each ingredient is handpicked for its quality and flavour and butter, eggs and cheese are sourced from local farmers that share their values. Values that embrace care and family.

in 1938 and always maintained that his first task was to go out into the fields to round up the horse before he could begin the day’s deliveries. After 73 years’ service to the firm, interrupted only by service in HM Navy during the 1940s, Donald sadly passed away in 2011. So what about business today? Richard says he believes life has become easier in the years he has worked as a butcher, “My father always said his first job every

morning was catching the horse. My job when I started out was pumping up the tyres on the bike, because we had six delivery bikes. Now you just have to turn the key and start up the car.” RJ Balson & Son continues to be an award-winning business with a loyal customer base here, in the meanwhile they are expanding into America. www.rjbalson.co.uk

Today, the business is three generations down the line with Steve, Sue and Graham Fudge continuing these traditions, embodying everything that the Fudges name represents. Each person brings a different set of skills and adds something of their own character and flair to the baking process. Ovens are checked with anticipation, flour is brushed from skilled hands, and pride is evident at every step. From the hand dipping of their biscuits and flapjacks in the finest Belgian chocolate, to the exquisite layering of their unique cheese straws, it’s this pride that truly sets this family-run business apart. And with all the awards and recognition they continue to receive each year, they know that Great, Great Granddad Fudge would be pleased too. www.fudges.co.uk

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We understand family business issues to a T

The dynamics of a family business are different from other businesses. Hazlewoods understands these issues and the impact families can have on the business. Our aim is to help you grow a strong family business and enhance its value and wealth retention. Hazlewoods will bring fresh and creative ideas to your family business. We will work with you to produce viable solutions, including plans for growth, tax efficient structures, corporate governance and succession planning.

Call David Pierce on 01242 680000 or email david.pierce@hazlewoods.co.uk www.hazlewoods.co.uk

Hazlewoods LLP is authorised and regulated by the Financial Services Authority

west country’s finest

Paragon: Squeaky clean since 1918 Not many businesses can trace family at their helm for almost a century – this heritage is true in the case of Paragon. The laundry business was established in Birmingham by Percival and George Stevens in 1918 and has grown from strength to strength ever since. The third generation of Managing Directors, twins David and Robert Stevens have grown the business to become one of the UK’s largest independent commercial laundry companies, offering services to the hospitality and industrial markets. The company provides crisp, clean table linen, sturdy, hard-working boilersuits and every conceivable launderable item in-between, serving everyone from hotels and restaurants, to garages and manufacturers. From their headquarters in Cheltenham, Paragon has a family of brands for every sector of the marketplace – ‘Brilliantparagon’, ‘Dream’, ‘Special Occasion Linen’, ‘NewGen’ and ‘PARiS Laundry Systems’ to mention a few.

Last year Paragon opened a new state-of-the-art facility housed within the old Yoplait Dairy Crest factory in Yeovil, Somerset: a move that has given significant employment prospects to the surrounding area and is strategically positioned in Yeovil to cater for the largest share of the UK hospitality sector outside London. This is the sixth laundry in the Paragon portfolio based in the UK, with others located in Nottingham, Cheltenham, Ross-on-Wye, Kington and Newport; the company also has various depots as well. The Yeovil laundry is capable of processing linen and laundry from more than 8,000 hotel rooms per week, housing the world’s largest tunnel washing system, and in its own right is set to become the fifth largest laundry in England. The company also addresses the environmental agenda with a transition from large steam boiler to local gas power, enabling the laundry to increase efficiency with steamless technology. An exciting future lies ahead for the family business including building and managing laundries in emerging world markets, following on from Paragon’s existing experience in Abu Dhabi, Dubai and Qatar. www.simplybetterlaundry.com

GENERATION SPRING / SUMMER 2011

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 ‘My Ten Days’ is an initiative of Family Business Place.

experts

Pre-nups post Radmacher - where are we now? In October 2010 the Supreme Court handed down judgment in the eagerly awaited Radmacher v Claire Gordon, Farrer & Co

Granatino case. Since the dust

Specialism Pre-nuptial and post-nuptial agreements.

has settled there has been a flurry

Profile Claire is a Partner in the Family team and advises HNW UK-based and international clients on all aspects of family law. www.farrer.co.uk

of cases in the English Courts in which pre-nuptial and post-nuptial agreements have played a pivotal role. Claire Gordon of Farrer & Co discusses the current state of the law and what it means for family businesses. Why might one need a pre-nup? Divorce can wreak havoc with the most carefully crafted business structures in a way that can seem nothing short of horrifying for those faced with a divorce petition in the UK. The English Court has wide ranging powers to redistribute (some might say “attack”) family or inherited wealth and interests in family businesses, determining a “fair division of the assets”, which is one reason why England has the (perhaps deserved) reputation as the divorce capital of the world. A pre-nuptial agreement can provide crucial protection.

“

Divorce can wreak havoc with the most carefully crafted business structures in a way that can seem nothing short of horrifying for those faced with a divorce petition in the UK.

“

Historically, English judges were reluctant to give weight to agreements entered into by parties prior to marriage and the decision in Radmacher is of great importance to many people: to those who are already married and who made financial agreements before the marriage,

GENERATION SPRING / SUMMER 2012

and to those contemplating marriage and wondering (a) whether to make such an agreement and, (b) whether, if they were to do so, the Court will uphold that agreement upon a subsequent divorce.

Are pre-nuptial agreements now binding? The Supreme Court decided that such agreements can be decisive of the financial outcome if a marriage ends in divorce. It said that “Pre-nuptial agreements that are entered into freely and with a full understanding of the implications are to be given effect unless it would be unfair to hold the parties to it” and it formulated a new clear test by which they should be judged. However, the court did not hold that such agreements will be decisive and binding in every case.

experts

Application of the Radmacher principle – what more do we now know? 1 Has the agreement been “freely entered into with a full appreciation of its implications”? There is no black and white rule regarding disclosure and independent legal advice. Each party must have the information that is material to his or her decision that the agreement should govern the financial consequences of the marriage coming to an end.

Post-Radmacher decisions After a seminal case such as Radmacher the real interest lies in seeing how such new principles are put into practice. In just the last four months High Court judgments have been published in respect of five different cases. Each case involved either a pre- or post-nuptial agreement and, whilst the decisions are, as always, fact specific, the principle set down in Radmacher has been applied and explored further, with clear guidance emerging as set out below. Overall, it is clear that real weight is now being afforded to pre- and post-nuptial agreements. The impact of Radmacher has filtered swiftly down to the lower levels of Court and English judges are willing to hold agreements to be “effective”. What does this mean in practice for

3 Duress, fraud or misrepresentation will negate any effect of the agreement. Undue pressure will likely eliminate the weight to be attached and exploitation of a dominant position will reduce or eliminate the weight to be attached. The court may take into account emotional state, age, maturity, and foreign elements. 4 “In the circumstances prevailing, would it be fair to hold the parties to their agreement?”

family businesses? With clear case law showing the weight now being afforded to pre-nuptial agreements by the English Courts, considering a pre- (or indeed post-)

“

people are generally more open than ever before at least to consider having such an agreement as part of their arsenal of wealth preservation strategies

“

Illustrations by Nick Bennet

2 Even if the couple have a “foreign” prenup, i.e. one not prepared in England, the case will be governed exclusively by English law (contrary to the approach in many other jurisdictions).

nuptial agreement should become a key part of an individual’s financial planning for the future. Although in the past pre-nuptial agreements in England were often regarded as deeply unromantic and rather un-English, the widespread coverage

• The agreement cannot be allowed to prejudice the reasonable requirements of any children of the family. • A distinction is drawn between marital and non-marital property. (In simplistic terms, marital property is generally regarded as property created during the marriage, with pre-marital property or funds received by gift from family or inheritance comprising non-marital property.) Respect should be given to the decision made by the couple to regulate their affairs, particularly where the agreement deals with existing circumstances and not ‘the contingencies of an uncertain future’, i.e. where the agreement protects pre-marital property as this can alter what is “fair”. • If the devotion of one partner to looking after the family and the home has left the other free to accumulate wealth, it may well be unfair to hold the parties to an agreement that entitles the latter to retain all that he or she earned. • It is likely to be unfair to leave a party in a predicament of need whilst the other enjoys a sufficiency or more.

of the recent cases in the British media together with, perhaps, a new pragmatism regarding the challenges of marriage, mean that people are generally more open than ever before at least to consider having such an agreement as part of their arsenal of wealth preservation strategies. We would certainly advise an individual to have one when the effect of divorce could impact heavily on the future of a family business. There can be little doubt that pre-nuptial and post-nuptial agreements will continue to become increasingly prevalent and feature far more prominently in England than they have to date. The case law will undoubtedly continue to evolve and refine the principles espoused so far, but pre- and post-nuptial agreements are now without question an essential consideration for those wishing to preserve their wealth.

GENERATION SPRING / SUMMER 2012

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Family Business Succession - “Will you still care for me when I’m 64?” The Beatles song“When I’m 64”can

Specialism An expert in dealing with the problems associated with family businesses, David fully understands the conflicts that can arise, and works creatively to produce workable solutions. He often advises on succession planning believing that its more than just the exit option, and that business strategy, management issues and financial plans for the business owners need to be jointly considered. Profile David is a Partner and head of Hazlewoods Family Business team. Contact T: 01242 680000 E: david.pierce@hazlewoods.co.uk www.hazlewoods.co.uk

often be very relevant to the older generation of family businesses. Will the next generation use the business to support them in retirement? This can be a reason why there is a reluctance to pass over management or ownership control. The older generation fear they will no longer be able to control the business they have built up, or their salary levels or dividends. Equally they may be concerned that the next generation will not make such a good job of running the business and it will ultimately fail. Finally there might just be the issue of facing one’s own mortality.

Planning ahead Research reveals succession is the biggest problem faced by family businesses. At some stage the current manager/owner has to stop. It is obviously better that this happens on a planned basis, rather than being forced by death. With management succession three questions to consider are: • How do you train the successor? • Who do you choose? • When do you hand over?

When it is the next generation taking over, the complexity of family relationships can cloud the issues. It is not easy to choose one child over another, or to acknowledge that perhaps the family member may be very good in their role, but they do not have the skills to lead the business. The youngest child, or the daughter, may be the right person but the idea that the eldest son is the heir apparent may pre-dominate in the family.

Illustrations by Nick Bennett

David Pierce, Hazlewoods

Ownership raises questions such as: • Who should be given shares? • How many to give? • Should the son or daughter who is running the business be given more than other children? • Should there be a controlling shareholding? • If the shares are not divided equally how can one be fair to the other children?

Ownership still allows an element of control because of the ability to step back into the business and dividends can be controlled. Each family needs to work out what is right for their business and as part of that process to decide on its view of the purpose of the business. Family business owners may only face the succession process once. So the help of a trusted outside professional who understands not only the technical aspects of succession but also the family influences on the decisions and family implications, can be invaluable. That trusted adviser will also make sure that the older generation are cared for when they are 64 and beyond.

GENERATION SPRING / SUMMER 2012

experts

Pensions reform set to have major impact on business New rules designed to resolve the UK’s pension savings crisis are set to Martyn Sullivan, St James’s Place Wealth Management

have a major impact on employers,

family businesses, and their

employees alike when wide-reaching

Opt in, opt out

This automatic enrolment will allow people to decide whether to stay in or opt out of a workplace pension. It will begin in October, starting with the largest employers and family business owners. Workers will automatically join and pay into their employer’s staff pension schemes, which could be an existing or new scheme to which the employer and the Government will contribute too by way of tax relief on personal contributions, unless they specifically opt out. Family businesses that fall into the category of smaller employers and newly formed businesses will have until 2016/17 to comply. It is all designed to reinvigorate pension saving in the UK, create a simpler system to help people make better informed decisions about how much they need to save privately, and make it easier for them to plan for their retirement. Minister for Pensions Steve Webb has described the new reforms as “the start of a muchneeded seismic shift in pension saving in this country” (Source: Department of Work & Pensions press release 1st February, 2012). The reforms follow the failure of stakeholder pension schemes, which

GENERATION SPRING / SUMMER 2012

foundered because they required no contribution commitment from the employer and excluded many smaller employers. Automatic enrolment recognises that the solution lies in private provision and compels all employers to enrol eligible jobholders in a workplace pension scheme, unless they are already a member of a qualifying scheme. Contributions will be collected and paid to the scheme by the employer through the payroll system.

A pension strategy For automatic enrolment, employers will have to choose a pension scheme, perhaps an existing one or a scheme set up with a pension provider. Information from the Pension Regulator will be available to help companies make this decision later in the year. A fundamental principle is that the jobholder must be enrolled and will then be able to opt out. The success of the proposals will be largely due to apathy -

£ £ £

www.martynsullivan.co.uk

With people living longer and facing the possibility of funding a retirement that could now last 20 years or more, the Government is getting employers and family business owners to enrol their workers automatically into a workplace pension to make it easier for people to start saving and not rely solely on the state pension.

£ ££ £

Profile Associate Partner of St. James’s Place Wealth Management working with clients who earn a higher income.

reforms take place later this year.

£ £ £ £ ££ £ £

Specialism Pensions

experts

£ £

£ £ £

£ £

£ £ £

£ £

Illustration by Nick Bennet

£ £ £ ££ ££ £ £ £ £££ £ £ £ £££ £ £££££ ££ £ £ £ £ £££££ £ £ ££££ £ £ ££ £ ££ ££££ £ ££ £ £ £ ££ ££££ £ £ £ £££££ £ £ £ £ £ ££££££ ££ £ £ ££ £ £ ££ £ £££££ £££ ££ ££ £ ££ £ £ ££ £££ ££££ £££ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £££ £ £ £ £ £ ££££ £ £££ ££ £ £ £ ££ ££ £ £ £ £ £ £ £ £ £ £££ £ ££ £ ££ £ £ ££ ££ £ £

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jobholders not getting round to opting out. Family businesses which fall into the category of employer will be banned from incentivising opt-outs. Another option open to employers is the National Employment Savings Trust,

“

Pensions can seem a confusing subject, full of financial jargon and complicated rules, and the new reforms provide much food for thought. Certainly for family businesses, a proper strategy is going to be essential

“

or NEST, a centralised pension scheme being run by a Government agency (NEST Corporation) to ensure that employers, including those employing low to medium earners, can access pension saving and comply with their automatic enrolment duties

NEST has a public service obligation which requires it to accept all employers who apply and offers a range of funds and fund managers designed to meet differing member needs, and to offer a default fund. As a registered pension scheme, NEST enjoys the full range of tax reliefs as well as being a qualifying scheme. It is intended as a low-cost option but does come with some restrictions. Pensions can seem a confusing subject, full of financial jargon and complicated rules, and the new reforms provide much food for thought. Certainly for family businesses, a proper strategy is going to be essential and most large scheme advisers consider that planning should already have started. The project will require an accountable manager and team. Family businesses should be mindful too of the requirements and restrictions of the Financial Services Act. They may invite an adviser to present to staff, and there is no problem in giving staff information that includes no recommendation or

advice. In addition, there is no problem recommending that employees join a scheme to which the employer contributes. It is vital that the employer informs the employee that advice is available from a financial adviser, and the employer should take no financial reward for establishing a scheme.

Things to remember For employees, it is important to remember that your life in retirement is going to be very different from your working one, both personally and financially. Outgoings are likely to be lower, but you may want to spend more money on leisure activities. Retirement is like a holiday – but every one of your retirement years has to be paid for. That is why it is essential to seek professional advice and start planning for retirement now, whatever your age, to provide an income that is going to see you through potentially many more years than those enjoyed by previous generations.

GENERATION SPRING / SUMMER 2012

GIVE BACK As family businesses become more successful, some feel compelled to find a way to help make their local communities and the world a better place, either through charitable giving, projects or giving circles. We can help design and produce publications that showcase good giving and help you to: • • •

Identify your philanthropic purpose Design a brand to encapsulate your purpose, commitment, values, vision and actions Produce a tailored and beautifully crafted book, diary or website

“Be the change you want to see in the world” Mahatma Gandhi

For further information visit For further information visit www.familyconstitution.co.uk/philanthropy www.familyconstitution.co.uk /philanthropy Foraaprivate privateconsultation consultation call For call Anitaon on07815 01732497417 220120ororemail email Anita Anita@brightleyhodges.com Anita@familybusinessplace.com

Illustration by Nick Bennett

experts

Leading your business over the crossroads A few years ago, businesses were making five year plans. Look back five years and you’ll see why that Nigel Southon, VentureGrowth

doesn’t work any more.

Specialism Strategic planning

These days we have to be lean, mean, flexible and avoid fixed costs wherever possible. That doesn’t mean that we have to stop planning. A journey that is not planned cannot be completed. Senior management has to be looking over the horizon and managing the structure and ethos of the company to achieve the agreed results and direction. There is no right or wrong direction but you need to have had the debate with every constituency that can affect your future – not just the family – before you start the next stage of your journey. What might your choices be? Maybe avoiding failure, or managing fast growth. Maybe raising money or planning to exit. Maybe seeking alliance partners or dealing with post-merger integration. Whatever your chosen priorities, you’ll need to acknowledge that most companies are perfectly organised for the results they currently achieve, not for reaching new goals. What organisation and structure will you need in the future? To answer the question “Where do you want to be in 2-3 years’ time?” we really interrogate all the stakeholders in a

Profile Nigel creates and executes strategies for restructuring and turnarounds, alliances and mergers, growth planning and exits. www.venturegrowth.co.uk

business until we extract their confessions! You may think that as long as the family agrees on strategy then that’s enough of a success in its own right. Do you invite your customers’ views when developing strategic plans? Why not? You’d be lost without them. What about prospective customers? Could their feedback help develop sales? What about your staff? Just because they don’t share the same surname doesn’t mean to say they lack commitment or knowledge. Whilst I’m on that point, do you have a communications plan and a compensation strategy that helps staff to have the “owner eye”? There’s nothing worse than asking for high wire performance that is serving only to make staff feel resentful and insecure.

Clear communication Once you have an agreement, sum it up in a business plan. The words are more important than the numbers and you need something that clearly communicates the priorities and risks to all concerned. It can then be used to monitor progress and as a foundation for any necessary adjustments. It’s a good discipline and very useful if entering into any merger or acquisition talks. The first question after signing an NDA is “Can we have the last 6 months’ Board minutes and the business plan?” If the answer in no, it’s like spraying liquid nitrogen round the room. In summary, strategic planning and good corporate governance are not time consuming overheads. They are ways of focussing resources and ensuring everyone is aware of their role in achieving the agreed goals. They’ll also understand how they can benefit.

GENERATION SPRING / SUMMER 2012

MBII

prosperity

Miss Piggy fights back In March 2012, a reputation crisis hit Goldman Sachs. A senior member of staff publically resigned declaring the firm “morally bankrupt” and had his 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

resignation letter printed by the New York Times.

Greg Smith was an executive director of Goldman Sachs. He said his superiors had described clients as muppets and that it had left him enraged. “It makes me ill how callously people [at the bank] talk about ripping their clients off,” he wrote. “Over the last 12 months, I have seen five different managing directors refer to their own clients as ‘muppets’, sometimes over internal email.”

On home turf We may dismiss this news story as just the problem of a large Wall Street bank and a disgruntled employee passed over for promotion. But perhaps we should look closer to home to ensure that our businesses, whatever their size, are not guilty of some degree of moral bankruptcy. Goldman Sachs is certainly not the first company to be accused of treating its customers with disrespect.

“

Many wealthy family members confuse happiness with the availability or the possession of money

“

How well do we treat our customers? Are they considered to be ‘muppets’ to be ripped off or do we treat them with the respect they deserve as the very life-blood which keeps our companies going? Smith reckoned the fast track to a promotion involved persuading clients to invest in stocks or other products “that we are trying to get rid of because they are not seen as having a lot of potential profit”.“Today, if you make enough money for the firm (and are not currently an axe

GENERATION SPRING / SUMMER 2012

$ $ murderer) you will be promoted into a position of influence,” he wrote, indicating that this is just the latest example of how target-setting can encourage unethical business behaviour. Of course, goal setting has long been seen as an effective management technique, and one which helps businesses to measure and improve their performance. There is pressure on all sides for companies to perform. The best one way for organisations to measure and report on how they are doing, both internally and externally, is to create targets and drive to meet them. In general, employees respond well to the motivational use of targets and goals. But when there is a lot at stake, for example, if a job is on the line, or a significant bonus is in jeopardy, employees can feel pressured to behave unethically

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in order to achieve targets. A climate of competition may even encourage staff to put their personal goals (achieving the target, beating their colleagues) above those of the company. Micromanagement by managers under pressure to meet targets can also create an atmosphere of mistrust. In these circumstances, staff do feel not trusted to do their best, or that their best is not good enough and in turn are placed under pressure to achieve ‘whatever it takes’.

Leading by example However, this may be counter-productive as growing evidence suggests that unrealistic target setting can actually encourage unethical behaviour, adversely affecting employee morale and creating an unhealthy corporate culture. Research by Maurice Schweitzer et al in

2004 indicates that, although most people are honest, those who are set specific goals were more apt to cheat than those who were simply asked to ‘do their best’, regardless of whether there was financial encouragement. The study also found that participants were more likely to overstate their productivity when they were close to reaching their goals than if they missed by a wider margin. However, staff don’t set out to ‘rip off’ customers. This culture will have developed as a result of influences on how staff behave. “You don’t have to be a rocket scientist to figure out that the junior analyst sitting quietly in the corner of the room hearing about ‘muppets’, ‘ripping eyeballs out’ and ‘getting paid’ doesn’t exactly turn into a model citizen,” wrote the Goldman Sachs director. It does not matter how big or small a

company is, the importance of leadership should never be underestimated. The culture of an organisation is set by the ‘tone at the top’, whether that is senior management or team leaders. Leaders who talk about ethical issues, supporting staff and behaving in an open and transparent way send the message to all employees, and the wider world, that ethics is taken seriously. Encouraging an ethical culture within your family business is not just a ‘nice thing to have’; your company’s reputation depends upon it. If your reputation suffers damage, the business is in jeopardy. Customers pay you, but if they do not approve or trust you, they will not buy from you. If family businesses treat customers like ‘muppets’, they may find that Miss Piggy has given them the chop!

GENERATION SPRING / SUMMER 2012

prosperity

Steve Rosenbaum and Thayer Willis explore the impact that wealth can have on family Steve Rosenbaum Expertise Managing family wealth Profile Steve Rosenbaum has been awarded the Certificate in Family Business Advising from the Family Firm Institute and works as an independent consultant. Thayer Willis specialises in helping people of all ages handle the psychological challenges of wealth.

GENERATION SPRING / SUMMER 2012

relationships and personal happiness. Happiness can be defined as the degree to which a person evaluates the overall quality of their present life-as-a-whole. Happiness is highly personal and each of us benefits by discovering our own definition of happiness. Definitions of happiness within the wealthy family can vary widely and may or may not include a reference to money. Many wealthy family members confuse happiness with the availability or the possession of money. They may have grown accustomed to a life cushioned with financial wealth, with luxuries and toys purchased using financial resources. To be wealthy in this way can be its own kind of trap, a gilded cage, in which the cage resident feels that he or she must have certain material items in order to be happy. The stress of acquiring and maintaining these material comforts ironically can become detrimental to oneâ&#x20AC;&#x2122;s happiness. This is particularly troublesome when a family member develops a passive role in his or her own wealth management. In a passive role, the beneficiary sees few choices, if any, and typically fails to take charge of his or her financial life. Happiness begins by acknowledging the reality of the present. We live such busy lives and are consumed by questioning our marriages and frustration in careers. There are often heightened levels of anxiety in family businesses and prosperous families. For example, the sale and liquidation of a family business, instead of fulfilling promises of family management peace, can lead to further strife. We can try to fool ourselves that our lives are full of happiness by displacing family angst and business worries. Similarly we can convince ourselves that we are miserable because of the internal stresses and worries within our

lives. It is only when we take responsibility and take charge of our lives that we can see our attitudes and behaviours begin to change for the better. We are taught at school to assimilate and regurgitate information rather than explain and understand its true nature. We typically perceive the outside world as black and white and then move steadily from early perception to digesting information and then storing it within our minds only later to give seed to a defining judgment. We look at members of our family systems as good or bad. This leads to ignorance and within families, conflict, which will almost always give rise to suffering. This internal world of ignorance and suffering is needlessly self created and is not a fundamental condition of existence.

â&#x20AC;&#x153;

Many wealthy family members confuse happiness with the availability or the possession of money

â&#x20AC;&#x153;

Can happiness and family wealth co-exist?

It is helpful to remember that happiness is an ephemeral state, which is a gift at times, and a goal at other times. We can certainly improve our ability to access happiness and thereby experience it more often.

Should happiness be the ultimate goal? Happiness is not a state of exaltation to be chased at all costs. Because of the long term nature of happiness as opposed to the short term gain of mere pleasure, happiness is the by-product and not the driver in life when we work hard, chase worthy goals and overcome difficult obstacles. When we set out to master and achieve our mission we attain a deeper and more fulfilled happiness. We strive to dispel ignorance and suffering by analysing and undertaking deep contemplation. We can spend time systematically analysing and contemplating every aspect of our lives and our suffering. What are we thinking and feeling and why? What effect do we have on others? How can we make changes? In a family situation, this may involve analysis of

prosperity

suffering can be more exciting because it can seem always different. We may appreciate happiness more with such contrasts. When we are unable to avoid suffering, it can be turned to profit and we can learn to change, although we recognise that suffering is never a welcome visitor. Suffering is different from unhappiness. We incur suffering but we create unhappiness.

“

To be happy, we need some measure of inner peace, freedom, joy, satisfaction and contentment.

“

our own position in the battle that can take place between those with power and the next generation. Maybe we can see the cause of sibling rivalry or how the leadership of the family business is not fundamentally flawed, just better communication is required. With words and thoughts, we can make more informed decisions and break down our own ignorance. This can be a painful but healing process and can give rise to enhanced levels of happiness. Sometimes it is easier to observe and analyse happiness in our family members than in ourselves. For instance, bring to mind your own family members. Which ones are happy? Can you tell how they have cultivated happiness? Are they flexible? Do they have a healthy sense of humour? Do they find ways to continue to grow? Do they have a great sense of freedom? Are they smart about which battles in life to fight? How do they deal with conflict? Are they grateful and appreciative? Do they surround themselves with positive people? Have they discovered the joy of helping others? Lasting happiness can seem boring because it is always the same, while

To be happy, we need some measure of inner peace, freedom, joy, satisfaction and contentment. For each of us, there is a personal definition of happiness in which we prioritise these qualities. Living on a pendulum between hope and doubt, excitement and boredom, desire and weariness is not inner peace and does not breed happiness. It is important to take charge of our ability to be happy and cultivate it.

Does our happiness depend on others? Many people have discovered the pathway to happiness that is found in serving others. While opportunities to serve strangers abound, it can be heartwarming to serve one’s own family members. And in wealthy families, this is often a lost art. Remember, it is not what happens to you that causes happiness or not. It is how you handle what happens to you that makes all the difference. It is in taking responsibility and acknowledging that you yourself are the maker of your attitudes and behaviours, that you place yourself on the path to happiness. For those who have been blaming others, it doesn’t really matter what those others have done. There are plenty of stories in which entire fortunes have been swiped, unspeakable abuse has been perpetrated behind thick walls that only financial wealth can create, and families have been torn apart by betrayal and divorce. No one gets through this life unscathed. It is simply the human condition. So, it is up to each one of us to decide how to make a success of our lives and create happiness.

GENERATION SPRING / SUMMER 2012

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prosperity

Antiques as an investment - the original asset In Tudor times a prudent man of wealth bought land and property, then with the advice of his agent he James Bly, John Bly Antiques

acquired the best and most desirable goods and chattels of artistic or

Specialism Investing in antiques Profile James is a professional antiques dealer advising wealthy clients on antiques as an investment. www.johnbly.com

intrinsic worth. With a few minor exceptions these goods held their value and at best showed quite handsome returns when sold. So the security of buying contemporary objets d’art and treasures from a bygone age was well established long before the current interest in antiques took hold. From the 1950’s until the 1990’s people who collected antiques as an academic exercise and those who furnished their house with them found that an everincreasing demand caused their collections and their household furnishings to earn money while they admired and studied or simply used and enjoyed. Anything old seemed to be a good investment. How things have changed, for now - and for most of the last decade - it is only the impassionate investor who can confidently expect and achieve a satisfactory return.

More than monetary value Of course the collector can still enjoy his collection, and the furnisher can still use his furnishings, but it can no longer be taken for granted that either will see their purchases automatically increase in value. If they do see an increase it will be because other people, i.e. ‘the market’, likes them too. But that is luck not logic; not a sound basis for an investment. In essence, investing in antiques should be no different to buying stocks and shares. You have an adviser, the equivalent of your broker, who tells you when there is an opportunity for a purchase, suggests a time scale for lock-in, the likely return forecast and the reasons behind his recommendation. You take his advice, buy

GENERATION SPRING / SUMMER 2012

and place the item in store. When he tells you to sell you sell. There are criteria that he must adhere to. An investment item must be of supreme quality within its category and have significant provenance. This needs to include an owner, a designer or a maker at least, and the more of these to a single piece the better. Then it must have growth potential in either its unrevealed history, as in a ‘sleeper’ or ‘lost’ item, or in its out-of-

prosperity

same, five to seven years. A ‘sleeper’ is best described as an item known to have existed but of which there has been no trace for many years. (Images show just such examples) It is knowledge of such pieces, the current style fashion in any given country, swings in functional needs and a constant awareness of the requirements of collectors and furnishers that make the adviser an integral part of any sound investment.

Long term investment Historically the most carefully chosen, researched and provenanced examples of any category of work of art or antique, from arms and armour to statuary, furniture, ceramics and metal ware, have shown a 7.5% - 10% compound interest increase after a five year period. This may be slightly reduced according to size, which relates to the storage costs but even for bulky items this is minimal.

“

In essence, investing in antiques should be no different to buying stocks and shares. You have an adviser, the equivalent of your broker, who tells you when there is an opportunity for a purchase, suggests a time scale for lock-in, the likely return forecast and the reasons behind his recommendation.

“

fashion style or in its currently unfulfilled functionality. For an example of the latter take the Georgian slope-front bureaux which lost their appeal in favour of flat top desks when computers replaced the more compact typewriters. As a result the price of bureaux fell to a third within a period of eighteen months. During the ensuing same period the average price had doubled from its base as computers became smaller but

has remained still below its former peak. There is room for growth given careful selection of only the best. Since the 1970’s a change in the demand for a specific period ‘style’ such as Shabby-chic to Minimalist, Old French to Robert Adam, and Arts & Crafts to Art Deco has occurred consistently within a five to seven year period and so it follows that the recommended minimum lock-in period for an investment is the

There are two main disadvantages in an antique or work of art as an asset class. One is liquidity. You cannot call your adviser as you would your broker and sell over the phone. Even if there are potential buyers in the wings, negotiations can take several months. The other is that the business is not regulated, so trust in the adviser is crucial. Having gone through a period when any old domestic items gained value, we are now back to Tudor basics where investment is concerned, when advice was sought and only the best was bought. Providing that same diligence is applied there can be no doubt that a fine antique or wonderful work of art should be part of any prudent man’s portfolio today. And of course if by chance he happens to like it he may take it home and enjoy it.

GENERATION SPRING / SUMMER 2012

prosperity

Leaving a legacy that counts Molly Bedingfield, Founder and CEO of Global Angels, believes that family businesses can leave their legacy by inspiring the next Molly Bedingfield, Global Angels

generation.

Specialism Strategic Philanthropy

Global Angels Foundation is an international charity empowering disadvantaged children and communities around the world. When I founded Global Angels in 2004 it was with a dream - to inspire millions of people from all walks of life, to Step Up and join me in building an international network of Angels who, in our combined efforts, would change the course of history by making the world a safer and kinder place for all. My hope was that, as people from all over the world donated their time, skills, expertise and resources, and were joined together in strategic partnerships with the business and charity world, we could build an effective response to the needs of some of the worldâ&#x20AC;&#x2122;s most vulnerable. I knew the world needed a new model of charity that connects with todayâ&#x20AC;&#x2122;s

Profile Mollyâ&#x20AC;&#x2122;s charity, Global Angels, aims to inspire a new generation of philanthropists www.globalangels.org

givers, who want to know their money goes directly to where makes a difference and not lost in expensive advertising and overheads. The Global Angels 100% Promise on donations became our hallmark, with every penny we receive from public donation going directly to the projects on-the-ground, providing tangible resources such as water, food, education, medical care and emergency relief to where it is needed most. We are able to do this because our overheads and operational costs are covered by patrons, corporate angels and our concerts. As a visionary I naturally think we can do the impossible and aim high. There is nothing as powerful as having your family believing with you that you can achieve your dream. As soon as I shared my vision with my family they were right there

above:

Daniel and Natasha Bedingfield performing at Angels in Concert left:

Molly and Natasha Bedingfield

GENERATION SPRING / SUMMER 2012

above:

Daniel Bedingfield helping with projects for children left:

Natasha Bedingfield with children in India

They are passionate to champion the cause of trafficked children, Daniel cofounding international charity Stop the Traffik. Daniel, Joshua and Natasha travel to India to support street kids, orphans and children rescued from the red light

“

Family businesses are in a unique position of influence to choose a cause aligned with their values and to develop business strategies around their sales and profits.

“

supporting and we began working on the strategy of setting up and developing the foundation. We planned concerts to raise funds and the Global Angel Awards for outstanding philanthropic work. We weren’t hugely wealthy, but the resources we did have to launch the charity were experience, a large network of friends and passion for the cause. After years of working in the voluntary sector, we knew the needs of people in hopeless situations and had seen them turn their lives around. Through Daniel and Natasha being international pop artists, many doors opened to us and we were able to launch with a concert in Coutts Bank on the Strand, and two years later we also launched in Times Square, New York. Although each of my children have their own careers, they donate their time and money, and share their platform.

districts. Nikola and Daniel have travelled with me to Africa to champion the cause of street kids, orphans and the great need of safe drinking water for Africa’s poorest communities. My husband John is my greatest behind the scenes support.

Philanthropic giving We each have our chance to make our mark on the world and leave a legacy that counts. Any business, and especially a family business, will find more fulfilment in their success if they are strategic in their philanthropic giving. It’s especially rewarding when we are passionate about the same causes and harness that energy as a family and focus it towards benefitting many people’s lives. Once I was asked by a journalist what I was most proud of about my children, that they were pop stars or their charity work. I am one of their greatest fans and love their music, but I think I am even more proud of the way they use their platform as artists to help do great good wherever they can. Family businesses are in a unique position of influence to choose a cause aligned with their values and to develop business strategies around their sales and profits. Bringing their staff and teams into the overall strategy of their philanthropy only enhances the loyalty within the company. Enthusiasm bred in the business culture spreads to customers. As enough of us Step Up and lead the way in philanthropy, we really might be able to change the course of history.

GENERATION SPRING / SUMMER 2012

Family Ties

2012 â&#x20AC;&#x2DC;Family Tiesâ&#x20AC;&#x2122; annual conference is THE conference for the family business sector and has become a firm favourite in the calendar. This annual event, hosted by Family Business Place, is held at a prestigious London venue and brings together family-run companies from across the UK. Book your ticket online today: www.familybusinessplace.com/familyties2012

will be even bigger and better, so book your tickets today! Family Ties Annual Conference Shaw Theatre, London

23 November 2012 To book your place contact E: info@familybusinessplace.com T: 01732 220 120 www.familybusinessplace.com/familyties2012 For sponsorship and advertising opportunities contact E: sam@familybusinessplace.com T: 01752 268 269 M: 07813 924 943

extending the Boundaries of traditional investment and philanthropy

hct group is a social enterprise transport company. The company operates mainstream bus routes, education transport for children with disabilities, social services transport for older and disabled people, yellow school bus services and a wide range of community transport services. Big Issue Invest has invested in HCT to support its growth since 2006.

Big issue invest was set up By the Big issue to finance social enterprises that are dismantling poverty Big Issue Invest, 1–5 Wandsworth Rd, London SW8 2LN • bigissueinvest.com • 020 7526 3434

ten

10 2 6

Ka Lai Brightley-Hodges explores the burning questions on your mind when joining a family business.

Does the same recruitment process apply to family and non-family candidates?

Will I be equally qualified and experienced as my non-family colleagues?

Are there any benefits specifically for family members? e.g opportunity to become a shareholder?

Will any complaints/issues be dealt with in the same way as other employees? i.e professionally and confidentially?

Will I be reporting directly to a member of my family?

7 Will I receive the same training and personal development as other employees?

Are there procedures in place to handle issues between family members?

Will my salary be calculated as per industry standards?

Will any promotions/ pay rises be purely performance related?

Are there opportunities for family members to meet and discuss ideas other than at Board level?

GENERATION SPRING / SUMMER 2012

panel

T H E P RO F E S S I O N A L S Whether it be legal, financial, sales or marketing, our experts are here to guide you and your family business in the right direction. Graham Keepen

Anita BrightleyHodges

Director

Foxgrove Associates

Managing Director

Specialism: Independent Financial Advice

Family Business Place

Specialism: PR

Our company is owned in equal shares by four family members. Our legal advisers have recommended we create a formal shareholders’ agreement to make sure that our spouses and children would be ‘looked after’ in the event of a shareholder’s death. We all agree but are now concerned about the financial impact a death may have on our business. Can you help us?

As a family business we have always stayed away from the press but recently we have won awards and have something to shout about. How do we start to develop a successful approach to PR?

1. Act quickly - even the best story has shelf life

The death of a shareholding director can have a huge impact on the future of your business. In the worst-case scenario, the financial strain may force the business to cease trading. Under a cross-option agreement each shareholder agrees that upon their death the surviving shareholders have the option to buy the deceased’s shares, usually at market value, and that the personal representatives of the deceased have the option to sell their shares to the continuing shareholders. At the same time, each shareholder takes out a business protection term assurance policy, under which the sum assured payable under the policy is held in trust by the continuing shareholders to pay for the deceased’s shares under the options. The transfer of the deceased’s shares should qualify for business property relief whilst the proceeds of the insurance policy fall outside of the deceased’s estate and are not subject to inheritance tax. This course of action not only ensures that a deceased shareholder’s beneficiaries can extract value from the company, but it does so in a way which is both tax-efficient and causes minimum disruption to the remaining shareholders and the company.

Top ten tips for getting great coverage for your business:

2. Newspapers - talk to the news desk. Radio/ TV - call the news editor / news producer 3. Prepare what you’re going to say and always ask if it is convenient to talk 4. A lot of journalists don’t have the warmest telephone manner but don’t be put off. 5. Keep emails short and to the point 6. If someone does want to cover your success make it as easy as possible for them 7. Never, ever lie or over-exaggerate, even if it means losing the story 8. If you are asked for a photo make sure you check the technical requirements- and try to get your logo into the shot 9. If a paper sends a photographer to do the photo, check the foreground and background for embarrassing words or images (remember the photo of Gordon Brown in front of a swastika in a classroom!) 10. Take another picture of you receiving your award and send to the paper - you never know, you may get another piece of coverage! Finally, remember, fortune favours the brave!

www.foxgroveassociates.co.uk www.familybusinessplace.com

GENERATION SPRING / SUMMER 2012

panel

Norma Stewart

Richard Hutt

Partner

Director

Wellers

Alpha Browett Taylor

Specialism: Finance & Tax

Specialism: Property

The current economic climate is not helping cashflow within our business. As a £6 million turnover organisation, like many others, cash is critical to us but we only have a part time credit controller. What are the main things we need to take into account when trying to survive the credit crunch?

The key to successful cashflow management is to optimise the amount of cash available at any one time.

• B ill early and pursue late payers vigorously . Beware not to drive away business, however, and extending credit beyond your normal terms could help to win new contracts. • D on’t pay invoices earlier than is necessary. However, take advantage of incentives to settle invoices early e.g. a 2% discount is the equivalent of a 24% annual return. • B ulk purchases can achieve savings but also tie up cash. They can also lead to waste if conditions suddenly change. Consider buying little but often in some cases. • A lthough it’s probably most profitable to bill clients per job, arranging for some to pay a monthly retainer would ensure a more predictable cashflow. • W hile you need to carry enough stock to fulfill orders, bear in mind that stock ties up cash and can be very expensive. Check stock regularly and dispose of any that is obsolete or slow moving.

My family business is looking to expand and rent more property. What’s your advice in this uncertain market?

Commercial property has its pitfalls and benefits. In the current economic climate, commercial property overheads - usually the second highest cost for business - have increased significantly. • Negotiation with your landlord. Many commercial properties are now leased at rents higher than their current rental value. Even if you are already a tenant, it does not mean you cannot renegotiate with your landlord. Tenants are in relatively short supply in the current market! You should take the opportunity to use that negotiating muscle. • Review your business rates. During these times there is also every good reason to consider a review of your rates liability but I would recommend that you use a member of an established professional body. Be careful what you sign up to. • Question service charges. Some landlords are increasingly looking to improve the value of their assets - at the tenants’ expense. There has never been a greater need to examine service charge accounts and make diligent enquiries.

www.alphaproperty.co.uk www.wellersaccountants.co.uk

GENERATION SPRING / SUMMER 2012

For all the latest news, views, features, recipes and more besides... • Marcus Wareing, Rick Stein, Michael Caines & Adam Byatt • School food for the future • Sustainability • Seasonal produce such as beetroot and asparagus • New products

www.thecommercialkitchen.co.uk 84

GENERATION SPRING / SUMMER 2012

book review

The Descendants

8/10

Many may have seen the film adaptation of The Descendants starring George Clooney already. If not, Family Business Place highly recommend that you read the original novel by Kaui Hart Hemmings. This is not a book written by a family business member or adviser but a beautifully written novel whose subplot is based around a family trust and its trustee. Matt King, the main character, is a descendant of Hawaiian royalty and holds the deciding vote in the family trust which holds the land that has been owned by the King family for generations. Heâ&#x20AC;&#x2122;s torn over whether to go along with other members of his family who want to cash out by selling the land to real estate developers. King meets with his cousins to vote on the fate of the familyâ&#x20AC;&#x2122;s 25,000 acres. The majority vote one way but Matt has second thoughts and decides to keep the land and find a different solution. Shocked, Mattâ&#x20AC;&#x2122;s cousins advise that they may take legal action but Matt is undeterred. This book really highlights how much a person must take into consideration, when dealing with their own family business, looking out for other people and not just family members. Written by Kaui Hart Hemmings

When Family Businesses are Best Gathering knowledge from the vast experience of both authors, this book helps explain the necessity of planning all aspects of a family business, from issues such as commitment, values and family member participation to stewardship, meetings and Board directors. This is a great book that strives for harmony in a business to create more success and high performing multi-generational family enterprises. This is a positive book that is a must read for any family business member looking to enhance their family success through relationships. Written by Randel Carlock and John L. Ward

7/10

GENERATION SPRING / SUMMER 2012

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We provide a specialist executive recruitment service to a wide variety of clients throughout the UK from Family Owned businesses, FTSE listed groups to start-ups. Executive search and recruitment services Interim and part-time consultants HR and Finance Consultancy Non-Executive Directors Contact Vanessa Moon or Shaun Durham Moon Consulting Ltd, The Old T 01275 371200 Fire Station, Lodway Business E recruit@moonconsulting.co.uk Centre, Pill, Bristol,BS20 0DH W www.moonconsulting.co.uk

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GENERATION SPRING / SUMMER 2012

HRS

A FULL ON DAY AT

MUDDY BOOTS Was joining the family business always your plan? It honestly never crossed our mind. We were working in London in film and television and would never have believed you if you’d said we’d be back in Worcestershire and starting a business alongside Roland’s family farm. What values have you learnt from working with family? We learned how entirely accountable you are for your actions and your business practice. That’s true of rural communities themselves, let alone working with family members. We’ve learned that fairness and honesty simply have to exist for your business to ever work in the long term. Working with your family forces you to discover this from the very first day and it can be the best foundations for any start up. What’s the best bit about working with family? We formed a side-step from the family farm. We bought the beef from Roland’s dad but we didn’t farm with him. The biggest benefit, particularly for the first year, was his very generous payment terms for the beef!The best bit about working as a husband and wife team is that every single second of hard work is towards a shared goal. And the worst? The worst thing about working with the generation above you in any way is that you’re so desperate to break out on your own and not feel beholden to your parents. The family/older generation are so rarely the ones making you feel this way, it’s always in your head but it’s hard to go back to feeling dependent on anyone, particularly after being independent in London for five years after university.

GENERATION SPRING / SUMMER 2012

How do you spend your free time? I think that 90% of our waking hours are happily spent on Muddy Boots. 3% in the gym. 3% relaxing and watching television (usually drama series like West Wing). 2% for seeing friends. 2% for food and you know… What would you advise someone thinking about joining their family business? Talk talk talk talk talk and then sit down, get a cup of tea and talk some more. There’s simply nothing to gain by not being honest about what you hope to achieve. Who inspires you? Personally, fantastic women in business like Jo Malone, Indra Nooyi and Sahar Hashemi. As a brand, it’s Innocent, Gu, Rude Health, Pulp Fruits… there are so many fantastic food brands in Britain and some of them have become extremely kind mentors to us when we’ve asked for their advice too. Does money motivate you? Yes, it definitely does. Roland and I don’t need a lot of money ourselves but money measures the success of our company and it will mean we can launch more products and grow the brand if Muddy Boots is making money. Describe your typical day in the family business. Classic FM wakes us up at 5.40am. We make a proper latte at home every morning – it’s our treat. Roland is then in the office for around 6.45am running all the orders, production, distribution and figures throughout the day and I’m usually on the road for a day of sales, meetings and in store sampling. Back at the gym for 6pm and then cook a nice supper, relax and usually in bed by 9pm – pretty rock and roll, isn’t it? www.muddybootsfoods.co.uk

Loyalty Trust Integrity Heritage Family Business Proud – wear FBProud stands for all of the values that are it with throughout pride and show your common family businesses customers areand anintegrity. including loyalty,that trust,you heritage ambassador of the UK’s family business sector. The FBProud marque has been developed by Family FBProud can be used on any marketing FBProud lifetime license - £495 tool including: contact Family Business Place Business Place to be awarded to thosePlease companies for more information – Letterhead, Business cards, paul@familybusinessplace.con who act as ambassadors and supporters of009the family Internal communications, 07921 710 Website (with reciprocal link back to www.familybusinessplace.com), business community. Corporate brochure, Packaging,

The FBProud marque has been developed by the Family Business Place to be awarded to those companies who have been proud ambassadors and supporters of the family business community. With over 65% of the UK’s private sector being family run, these businesses make a significant impact on the UK economy and deserve to be recognised.

Vans/lorries, Signage

FBProud can be used on any marketing tool including: Letterhead, Business cards, Internal communications, Website, Brochure, Packaging, Vehicles, Signage. FBProud lifetime licence £495

For more info contact: Family Business Place E: info@familybusinessplace.com T: 01732 220 120 W: www.familybusinessplace.com

Are you a family business or an adviser looking to promote your products/services amongst the family business community? Advertising with family business place is simple and cost effective. Talk to Sam Stoyan about our excellent, competitive rates and how we can tailor packages to meet your specific needs. E sam@familybusinessplace.com

T 01752 268 269 M 07813 924 943