Generation Magazine • Spring / Summer 2018
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The official magazine of Family Business Place
Featuring:
Elite Fish & Chips Like father, like daughter
Royal Warrant Holders Celebrating the cream of the crop
This Way Up The next generation of family business
Lamont Pridmore
Two Sides of the Same Coin
editor’s letter ‘Whatever quality a business relies on... you can rest assured the family business has it in spades’
MAKING FAMILY BUSINESSES FAMOUS This year marks the 10th anniversary of Family Business Place, and for 2018 we’ve given ourselves a mission. We’ve devoted an entire decade to the support of entrepreneurial families, and to bringing them together- now it’s time to Make Family Businesses Famous. The family business model is the most successful in the UK & Ireland- and for that matter, the world- and it all comes down to just how consistently vital of a presence they are. Whatever quality a business relies on; be it solidarity, trust, ethics, loyalty, passion, you can rest assured the family business has it in spades. It’s what we love about them, and what we love to foster within them. Recent surveys project that 75% of family businesses generate revenues between £15m-£355m, with 60% showing revenue growth . Local employment in family businesses is also set to increase to 6 million jobs this year, and in terms of the economy, is predicted to contribute £180 billion annually . These figures are undeniably remarkable, and some may wonder how independent, family-owned businesses can have such an enormous effect on society. Yet, of the respondents, both UK and global firms overwhelmingly agreed
that family businesses had the edge when it came to streamlined decisionmaking, long-term strategies, strong culture and values, entrepreneurial thinking, and generating success outside of just profit. The success of the family business sector is a wonderful testament to the ethos of fairness, philanthropy, and providing value that is common to them all. We think that’s something worth celebrating, and with our membership now well and truly launched, we’ll have the platform- and the spotlight- to do just that, supporting and promoting the UK & Ireland’s most vibrant family business community for even more decades to come Best Wishes
ALEC PITMAN, GUEST EDITOR
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contents
IN THIS ISSUE
FAMILY BUSINESS PLACE TEAM: Chairman: Anita Brightley-Hodges anita@familybusinessplace.com Managing Director: Amalia Brightley-Gillott amalia@familybusinessplace.com Events & Membership Director: Susan Anderson susan@familybusinessplace.com Head of Design: Olympia Brightley-Hodges olympia@familybusinessplace.com Content & Editorial Assisant: Alec Pitman alec@familybusinessplace.com Design Assistant: Lucy Parris lucy@familybusinessplace.com Research & Database: Stephen Brightley-Hodges Photographer: Nick Gillott nick@nickgillott.com Photography Assistant: Lily Simmons lily@fmailybusinessplace.com Beautifully printed by Matthews - a family business www.matthews-printers.co.uk
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01 EDITOR’S LETTER
Why we’ve made it our mission to Make Family Businesses Famous
05 OPINION/BLOG
What recognition from The Queen’s New Years’ Honours means for the world of family business
07 UPFRONT CHARLIE MULLINS and the role of family spirit in business SNAPSHOT how digital marketing has changed how we buy 2017 FBP EVENT REVIEWS highlights from our exciting, most talked about national family business events FAMILY BUSINESS NEWS stories from the world of family business
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22 MEETS LAMONT PRIDMORE Graham and Chris Lamont discuss their unique father-son relationship AMALIA BRIGHTLEY-GILLOTT talks motherhood and her return to Family Business Place HELEN GAMMONS shares the story of lighting manufacturer, Rotolight ANNA LEE of Storm Watches reveals the ins and outs of family business ELITE FISH & CHIPS Adrian and Rachel Tweedale talk about inheriting the keys to the kingdom
36 ROYAL WARRANT HOLDERS
Celebrating some of the royals’ favourite family businesses
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44 EXPERTS
60 PROSPERITY
LEGACY keeping your business alive for generations to come
ETHICS IN BUSINESS the role of morality within entrepreneurship
1. Anita Brightley-Hodges, Chairman
EXIT PLANNING ten things you should have in place
PENSIONS the importance of taking control of your own pension scheme
3. Nick Gillott, Photography
COLLABORATING YOUR WAY TO SUCCESS establishing collaborative working principles
WORKING FOR GOOD how businesses that give back help everyone
NEURODIVERSITY harnessing the talents of unorthodox minds
ENTERING AWARDS the benefits of entering awards as an SME
ASSET BASED FINANCE how to fund your family business in 2018 FAMILY CHARTERS the benefits of keeping a record of family history
56 SPECIAL ROB DOUGLAS explores whether entrepreneurs are born or made
71 TEN Things to consider when funding your family business
75 THIS WAY UP
CONTRIBUTORS 2. Alec Pitman, Editorial 4. Amalia Brightley-Gillott, Managing Director 5. Lucy Parris, Design 6. Rhian Stone, Illustration 7. Charlie Mullins OBE, Pimlico Plumbers 8. Simon Smales, Royal Bank of Canada 9. Tom Shaw, Charles Russell Speechlys 10. James Freeman, Charles Russell Speechlys 11. Professor Amanda Kirby, Do-It Solutions 12. Wasim Ahmed, TMF Brokerage 13. Robin Douglas, Durham University 14. Simon Webley, Institute for Business Ethics 15. Ben Fowler, Western Pension Solutions 16. Danny Witter, Work For Good 17. Donna O’Toole, Crafted by August 18. Laura Cockburn, BGF
Focusing on the next generation of young family business entrepreneurs
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Awesome Achievements and Accolades
FAMILY BUSINESSES IN THE QUEEN’S NEW YEAR HONOURS
Awesome Achievements & Accolades Anita Brightley-Hodges looks back to the start of an already fantastic year for family businesses being recognised for their achievements
Anita Brightley-Hodges, Family Business Place Specialism Family Business Advisor Profile Anita helps family businesses overcome the issues and challenges they face around succession and next generation integration into the business. anitabrightleyhodges.com
Only a week into 2018, the family business community enjoyed a fantastic win, with 13 family business leaders listed in Her Majesty’s New Year Honours. The Queen’s Honours give national and global recognition to extraordinary people and with two CBEs and ten OBEs (as well as a knighthood for Sir John Timpson), we are still absolutely delighted to see that so many family businesses received the ultimate commendation for their work. Be they in service to the economy, best in class, innovation, philanthropy, community service; it proved just how hugely diverse the potential of family businesses can be- and how ‘the backbone of the UK economy’ is a title well-earned! These achievements are the highest accolades in the land. You can nominate anyone but yourself, if you feel that they have made a difference to their community for the better, achieved something great,
innovated within their field, improved quality of life for those less able, and more. The nominations must pass through a committee and the Prime Minister before submission to the Queen. To be mentioned is no mean feat, and I raise a glass to all who have excelled and rewarded publicly for their efforts. What I think is lovely about the Queen’s Honours Lists is that they favour good values, and these extraordinary people are bound by the common values that can be found in the DNA of any family business. Honest-to-goodness people contributing to their communities, providing quality products and services, giving back, innovating in their industries- these values are what make a family business; and for that reason it is my sincere hope to see even more thriving family business stars listed next year www.anitabrightleyhodges.com
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Family Business
Through and Through Pimlico Plumbers founder Charlie Mullins OBE talks staff satisfaction, giving back, and the life of a little girl
There are so many ways in which employers can boost morale for employees to buy into- company ethos beyond remuneration and a timely thank you is one of the most straightforward ways. But Pimlico Plumbers is a family business through and through, so I treat my staff like my family, so I like to do more than just say thank you. I started with giving staff a place to work out. Maintaining a healthy lifestyle is so important, and so I put £500k towards building a 24/7 gym with stateof-the-art exercise equipment, and contracted two personal trainers for all staff who hold free, private classes from spin, to rooftop yoga. The gym keeps everyone healthy and happy, and gives my staff a supportive environment to work out in. After a heavy workout, all staff have the option of free massages with a professional masseuse, to release tension and de-stress. But one of the most greatly anticipated staff benefits are our 5-star socials. As I said earlier, in the company, we all go through everything together, including enjoying the summer sun on
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As a company we managed to rustle up £31,285 in donations
Our annual Christmas Extravaganza is held at The Royal Garden Hotel, London, and this year was attended by more than 350 people. As part of the festivities, Master of Ceremonies on the night, actor and comedian Bobby Davro, encouraged our staff to put their hands in their pockets and fill envelopes with donations for little Annabelle. This netted £5,000 for the cause, which was matched by the company, taking the grand total to £10,000.
The generosity of the Pimlico Plumbers family was amazing and it brought light to the compassionate culture that is born within family businesses. The company also committed to donating £1-per-job during December to her cause, along with my personal contribution, as a company we managed to rustle up £31,285 in donations. Annabelle is a wonderful little girl and we were absolutely delighted to be able to help improve her quality of life. We
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Annabelle is a wonderful little girl and we were absolutely delighted to be able to help improve her quality of life
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Pimlico Plumbers is a family business through & through
a boat on the River Thames, to celebrating together at our annual Christmas Extravaganza. Christmas is always our busiest time of the year, and it means everything to me to thank my staff for all their hard work, with our black-tie dinner and dance. But this year the lead up to Christmas had a very different meaning to all of us at Pimlico. In October last year, I heard about a little girl called Annabelle, who suffers from a rare genetic disorder called SMA1. To support her treatment, Annabelle needs regular hydrotherapy pool sessions and a physiotherapy canopy. Unfortunately there are no such facilities near her house in Essex, and with traveling not an option, her parents were in desperate need to raise £40,000 to install the equipment at home. The plight of little Annabelle immediately touched me, and I kick started the donations with £1000…then came our Christmas Party.
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Getting the absolute best out of your staff can be the difference between success and failure. Business owners set direction and strategy, but it’s up to the workforce at the front line to deliver. The fact is, if people aren’t happy in their work, they won’t be productive, which doesn’t do anyone any favours.
hope her family would have an amazing Christmas, with a positive outlook on 2018 www.pimlicoplumbers.com
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If you’re going to get anywhere, credibility is the best currency.
SNAPSHOT
Digital Marketing The Future is Now With the Internet having transformed how customers buy, marketers will need to adapt their tactics if they are to reach younger generations.
65% of
Online buyers (especially millennials) are suspicious of brands and advertising.
consumers have purchased a product recommended by a social media contact.
Studies show that product recommendations make buyers more likely to purchase.
71%
Millennials and Linksters are keen to be heard, so are likely to share their reviews and stories.
85% of
bargain-hunters say their shopping behaviour changes in response to social media content. 8 GENERATION AUTUMN / WINTER 2017
62% of millennials
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say they are more likely to be loyal to a brand that engages them on social media.
Endorsement from popular online personalities can greatly influence younger generations within their audience.
Facebook & Youtube are the most likely social media sites to influence a purchase.
Luckily, social media gives consumers an easy platform to talk to friends online.
93%
Nearly of social media users have made or received a recommendation of a product or service.
Using social media to keep content fresh gives you more chance of appearing first on search engines.
As a marketing tool, it’s clear that social media is here to stay... for further information to stay ahead of the curve, visit: www.invespcro.com
GENERATIONAUTUMN SPRING / SUMMER 2015 GENERATION / WINTER 2017
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The home of Family Business
TM
National Family Business Conference 2017 Through The Generations 22nd November saw our return to Ernst & Young, with The National Family Business Conference 2017 - Through The Generations.
The Trotters team play the insightful Expedite Learning board game, designed to explore the differences in mindset across generations.
Sabina and Rami Ranger, Sun Mark, each discussed Sabina’s entry into the family business.
Ernst & Young, Canary Wharf, London
Featuring some fantastic family business speakers who contributed with personal experiences of working with their parents, siblings and children, we explored the differences that come with bringing new generations into a family business.
The third generation of Family Business Place, Hendrix Brightley-Gillott #BabyH
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Paul Kelly (Kelly Turkeys) talked about taking the reins of his father’s business.
Joy Allen (left) & Helen Gibson (right) spoke about value they have brought to their father’s business, Agencia.
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Chairman of Pentland Brands UK Andy Rubin, talks about the history of his family’s company.
Cicely Elliott-Berry (Sibling Distillery) shared her insights during the panel discussion.
James Axtell (Symm) shared the responsibilities that come with heading a fifth-generation business.
Lucy Parris (Family Business Place, left) networking with Gemma Firth (Matthews, centre) and Sally Ashford (Charles Russell Speechlys, right).
Thank you to our supportive sponsors:
GENERATION AUTUMN/WINTER 2014
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It’s our birthday It’s our birthday
Celebrating 10 years of flying the flag for British &10Irish businesses Celebrating yearsfamily of flying the flag for That’s British 10 & Irish family businesses years in business,
That’s of 10building years in business, 10 years connections, 10 years of building connections, 10 years of bringing together family firms, 10 years of bringing together family firms, 10 years of supporting entrepreneurial 10 years of supporting entrepreneurial families through thick and thin. families through thick and thin.
£175,000 £175,000 helped raised helped raised for charity for charity
30borehole borehole 30 wells in in wellsbuilt built Uganda Uganda
10,450 social 10,450 media fans
social media fans
45 events exclusively for family 45businesses events
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exclusively for family GENERATION SPRING / SUMMER 2018 businesses
over 4,100 guests
over 4,100 guests
11,000 YouTube video hits
11,000 YouTube video hits
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By The Bootstraps
Home-Brew Everards of Leicestershire recently celebrated the birthday of another local fixture- the Haymarket Memorial Clock Tower, which is nearly 20 years its junior. The tower is the namesake of Everards own ale, Clock Tower, which was made as a way of celebrating 150 years of the local landmark standing proud in the famous city. Not only is the iconic landmark considered a focal point of Leicester, it also holds the historical title of Britain’s first traffic island.
Everards itself was founded in 1849, and now in its fifth generation, own more than 175 pubs mainly in Leicestershire and the Midlands. With a 2015 launch, the Clock Tower ale is a fairly recent release, brought back to mark this important birthday for the city, especially next to Everards’ award-winning flagship bitter, Tiger, which was released in 1972. Everards created and released a Youtube video to celebrate the birthday of the clock tower, as well as the rich history, culture, and community of the great city surrounding it. www.everards.co.uk
John Timpson, Chairman of The Timpson Group, was recently granted a Knighthood from Her Majesty, Queen Elizabeth II. The Chairman of the sixthgeneration shoe repair business was made a Knight Bachelor of the British Empire by the Queen at the Royal Investiture in Buckingham Palace, following recognition for services to business and fostering in the Queen’s Birthday Honours List. During their short conversation, the Queen said the fostering ‘was a splendid thing to do.’ John and his late wife, Alex, fostered more than 90 vulnerable children over 31 years. ‘It was a wonderful day and made all the more so by meeting Her Majesty,’ said John, ‘but it was a bittersweet occasion without Alex by my side. I think she would have rather enjoyed being Lady Alex.’
‘I was anxious when I went through the Palace gates and couldn’t wait for the ceremony to be over,’ said Sir John, ‘but, looking back it was a day I will cherish forever.’ Originally a footwear retailer, the company has changed greatly under John’s influence. After selling the shoe shops to a rival retailer in 1987, he chose to double down and develop the shoe repair and key cutting side of business; diversifying their services to include engraving, watch repairs, dry cleaning and photo processing. Since Timpsons celebrated its 150th anniversary in 2015, it’s safe to say that this decision played a crucial part in the business’ longevity- and with sixth-generation James currently acting as Chief Executive, it seems they will remain a fixture for years to come.
Free Country
visitors with opportunities to experience the countryside in all its splendour. Whether it be abseiling, gorge walking, constructing bows and arrows, or even just lending a hand on the farm; the range of activities allow visitors to craft their own unique experiences. ‘We love it here and wanted to give other people a reason to stop, stay and spend some time in this amazing and largely undiscovered part of the country,’ says Sheena. ‘There is so much potential in the site and it is great to be starting to realise our vision,’ says founder, Jamie. www.theforgecorwen.co.uk
Launched by couple Jamie and Sheena Corry, The Forge is a twenty-acre smallholding located on the outskirts of Corwen, Wales- but more than that, it is the culmination of eight years of evolution of their survival activity business, the Wild Bushcraft Company. The ultimate glamping site, The Forge allows visitors ‘to step off the world and escape the pressures of modern life’. Combining Jamie’s background as a bushcraft instructor with Sheena’s corporate skills in coaching, the business provides
www.timpson.co.uk
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RBC1306/Sept2018
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Seventy in Style
Standing-Room Only The latest raft of appointments for Birmingham coffee machine manufacturer Fracino brings the multi-award winning team to 70-strong. The seventeen new positions, which include engineering roles, service engineers, boiler manufacturers and assembly line operatives, are based in Fracino’s 45,000 sq ft factory – one of the world’s most advanced and efficient espresso equipment manufacturing facilities. ‘The new roles complement our expansion strategy as we continue to mark growth, both in the UK and overseas,’ said Adrian Maxwell, Fracino MD.
He continued, ‘Our leading systems and equipment, coupled with our vibrant research and development programme which drives our new products, will further fuel innovation and the production of our world class espresso machines.’ As well as selling and exporting thousands of machines to over 70 countries every year (accounting for double-digit sales growth annually since 2009), Fracino is a champion of working to develop the next generation of engineers with its own in-house training certification. www.fracino.com
Weekend Warriors
of a changing rota of shift days, staff at Border now work one or two eight-hour shifts each week, allowing them to have weekends off while also benefitting from increased pay. As well as promoting a better work/life balance, the updated system will also create a more stable groundwork for consistent teamwork, with employees being
Scottish biscuit manufacturer, ‘Border Biscuits’ has promoted a better work/life balance for its 150 staff, by changing its production schedule from a seven to a five day week. Instead
The UK’s only family-run funeral coachbuilders celebrates its 70th anniversary this year. Set up by William and May Wilcox, Wilcox Limousines is now run by the second and third generations of the family; who have organised a jampacked schedule of events and activities to mark the milestone. Based in Northampton, Wigan, and Buckinghamshire, Wilcox has built vehicles for
split into more compact set working groups. Originating from a Lanark-based factory with only four members of staff, founder John Cunningham decided that his business would live or die on word of mouth. Over thirty years later, and Border has become a firm national favourite. ‘People are the heart and
use by the British Royal Family, as well as for state funerals around the world. The company also exports internationally, having just delivered two of its Jaguar XF hearses to New Zealand: the first international deal of its type in Australasia. Last November, the team attended the International Funeral Trade Exhibition, Funeraire Paris, in the French capital. Chief Executive officer, Paul Wilcox, said, ‘We are incredibly proud of our long-standing heritage and are looking forward to marking our 70th anniversary with an array of exciting celebrations next year.’ www.wilcox.uk
soul of our operation and the changes aim to provide a better work life balance for all of our employees,’ says Elaine Bone, Production Manager. ‘The new shift system is a great way to recognise the team for all of their hard work and dedication that makes our biscuits so exceptional.’ www.borderbiscuits.co.uk
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Oscars of the Industry
York-based Millers Fish & Chips was named the best in the country by The National Fish & Chip Awards, an event called ‘the Oscars of the industry’. The owners of the fourthgeneration chippy, Nick and his father, David, attribute their great
Centre-Stage The fascinating story of the three generations behind the famous Manchester restaurant, Sweet Mandarin, has been adapted into into a theatre production; Mountains: The Dreams of Lily Kwok. Based on Sweet Mandarin, the family memoirs of Helen Tse, the production was featured in the Royal Exchange Theatre in Manchester between March and April this year, and will continue its UK tour until June 2nd. It is the first major mid-scale tour of a British East Asian play. Written by In-Sook Chappell and directed by Jennifer Tang, the play recounts the story of Helen Tse (played by Siu-See Hung) growing up in the UK. When she travels to Hong Kong to visit her grandmother Lily Kwok (Tina Chiang), she steps into her past, discovering shocking family secrets that
will change her life forever. The play asks questions about what you give up to fit in, and what you leave behind to move forward; running the gamut between heart-warming highs and catastrophic lows. Helen and her twin sister Lisa have run the Sweet Mandarin restaurant since 2004, and were awarded an MBE for Services to Food and Drink in 2014. At selected venues, they will lead a pre-show cooking demo. The UK tour of Mountains is sponsored by the Hong Kong Economic & Trade Office. Director General, Priscilla To, said, ‘We are pleased to be supporting this play portraying the lives of three generations of women… it is a bittersweet tale of finding oneself, of trials and tribulations overcome by valour, determination and familial love, evident in the play.’ www.sweetmandarin.com
Struck a Chord Northern Irish family business, Wilsons Auctions, have helped the donation of 19 guitars to Northern Ireland Hospice to reach a grand total of £15,250. The Belfast man, Brian Bennett, donated the collectable Fender Stratocasters in honour of his late mother, who had volunteered for the charity. Some of the guitars had been signed by Slash, Vince Neil from Motley Crue, the Rolling Stones’ Bill Wyman, and Def-Leppard’s
accomplishment to a willingness to combine ‘the tradition associated with great British fish and chips together with a new, innovative approach’. The shop operates a separate frying area to cater for allergenfree diets, offering gluten-free, halal, and vegetarian products. Now in its 30th anniversary, the award is organised by Seafishconsidered by many to be the authority on seafood. ‘The judging process is known for being extremely challenging, with shops being thoroughly put through their paces,’ said Marcus Coleman, the Chief Executive Officer of Seafish, who added, ‘but Millers Fish & Chips stood out from the beginning.’ With the combination of David’s experience and Nick’s modern approach, they are a team to be reckoned with, and one of the industry’s greatest double acts.’ www.millersfish.co.uk Vivian Campbell. The guitars were auctioned to global interest at Wilsons in Mallusk just before Christmas. John Ardill, Wilsons Auctions’ Belfast Branch Manager, said: ‘We were thrilled to be able to support Northern Ireland Hospice by facilitating the auction of such an impressive collection of guitars. Brian’s generous donation certainly created a wave of excitement throughout the auction on the night, and we were blown away by the amount raised, especially knowing it is going to such a worthy cause.’ www.wilsonsauctions.com
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Shoes Make the Man Robin Elt Shoes took home a highly coveted Footwear Industry Award at this year’s ceremony, clinching the top spot in the Men’s independent Footwear Retailer of the Year category. Worcester’s very own 145-year-old family-run footwear store had been shortlisted for an impressive five Retailer of the Year categories. Director Robin Elt commented, ‘The Footwear Industry Awards are the pinnacle of achievement judged by industry pundits. To have received an
accolade for three years running is most rewarding. As a family run business we could not have achieved this without the dedicated, hardworking team that are our staff.’ The Footwear Industry Awards continued its timehonoured tradition of giving back by carrying out a charity fundraiser for Footwear Friends, which has been supporting the sector for over 175 years, and The Bobby Moore Fund, which funds pioneering, lifesaving bowel cancer research. Throughout the evening, guests raised a generous amount for the two charities which they are keen to continue to support. www.robineltshoes.co.uk
Castle in the Sky Mayor Mullins Charlie Mullins OBE, the founder and CEO of Pimlico Plumbers, has announced his intention to stand as an independent candidate in the 2020 Mayor of London elections. Charlie said, ‘While one of my first policies will be to put an ambassador for London in Brussels to fight our corner, I believe that keeping London’s pride of place is about making it a better place for all its diverse citizens to live.’ ‘This for me has always meant that there needs to be jobs, good, skilled, well paid jobs for everyone who wants them, which is why I intend to build London into a centre of excellence for skills training, based on my
years of campaigning for apprenticeships.’ If elected, one of Charlie’s first policies will be to make travel on public transport for all registered apprentices under the age of 25 completely free- both to provide support to apprentices, and by extension, go toward solving the UK’s skills gap. www.pimlicoplumbers.com
Ashford Castle, one of Ireland’s most luxurious five-star destination hotels, has been featured on BBC’s Amazing Hotels: Life Beyond the Lobby. As well as being given a tour of the spectacular 13th-century estate, presenters Giles Coren and Monica Galetti stepped into the shoes of hotel staff; getting a taste of the exemplary service levels enjoyed by guests such as George V (then Prince of Wales), Ronald Reagan, John Travolta, Brad Pitt, Oscar Wilde, John Lennon, Barbra Streisand and John Wayne. The Guinness family’s
former seat, Ashford Castle’s outstanding reputation led to its acquisition by The Red Carnation Hotel Collection – a collection of the finest familyrun boutique hotels across the UK, Ireland, South Africa, Switzerland, and the USA. Following a multi-million pound restoration project that saw the addition of a luxurious spa, an indoor ozone-filtrated swimming pool, stunning wine cellars, 26 estate activities and a private Hideaway Cottage, Ashford Castle re-opened in 2015 to great acclaim, and has since been crowned the ‘Best Hotel in the World’ and inducted into National Geographic’s Unique Lodges of the World. www.ashfordcastle.com
If you have an exciting piece of family business news just give us a call and let us know. We could feature you in the next issue of Generation and on familybusinessplace.com Contact us by email: press@familybusinessplace.com or telephone: 01732 220 120
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THE NATIONAL FAMILY BUSINESS AWARDS 2018 TM
TM
A Kaleidoscope of infiffiinite brilliance
WE’RE GOING TO
WEMBLEY 14 July 2018
BOOK YOUR TICKETS NOW www.thenationalfamilybusinessawards.com
The National Family Business Awards descended upon Wembley Stadium on the 15th July 2017
Agencia Consulting took home the ‘Best Small Business Award’, presented by Chris Riddell from Matthews.
The family behind ONE.a Hair & Beauty Salon won Judges’ Choice for Wales & regional Apprenticeship Champion.
The event saw 350 guests in attendance, reflecting our growing reputation for recognising the most outstanding family businesses throughout the UK & Ireland.
The two families behind Abbott-Wade, GENERATION 2014 21 who won the North AUTUMN/WINTER West regional award for Best Small Business
TWO SIDES
Even in this modern age, father-son accountants Graham & Chris Lamont of Lamont Pridmore champion a personal touch over online financing. Anita Brightley-Hodges finds out more
Tell me about the challenges facing the accountancy profession. CHRIS The real problem for the profession is, you don’t have people learning how to turn data into a proper set of financial accounts anymore. These days, the computer could produce a result that is clearly wrong, but the operator doesn’t challenge those findings. GRAHAM We seem to have that sixth sense. If you give us a set of accounts, in five to ten minutes, we can tell you whether they’re right or not.
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SAME COIN
Graham, how did you started this enterprise? GRAHAM Well I’d trained as a chartered secretary, and I was joint first in the country when I qualified. I was headhunted to work in London, but my professor thought I had a head for accountancy, so he introduced me to a chartered accountant in Workington. I was offered a partnership with him in September 1977, but that following March he was sadly killed in a car crash. Normally, you can’t practice for two years after qualifying, but because of the situation, the Institute of Chartered Accountants gave me special dispensation to
practice and his wife and secretary allowed me to buy the practice. They always treated me like family and decided that I was the ideal person to take over the practice. How did you fund the business? GRAHAM Well, my Dad had the offer to buy a business some years ago, but Mum was too nervous to put everything on the line. So, when I was saying ‘I’m not sure I can do this,’ Dad said ‘here’s the deeds of the house, use that as security, just do it.’ The 80s were boom time for us, so
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within three years we’d paid all the loan off. By 1985, we had built up such a good reputation that we got a call from Harry Pridmore, who was retiring. His nephew, Wilf Pridmore met with us and we seemed to get on, so that’s how we expanded further. Then to my surprise, in 2008, Chris came back from London!
at Workington were just thinking ‘oh, it’s only little Chris.’ So there wasn’t an awful lot of respect until I’d necessarily earned it. But with the Kendal and Carlisle teams, I was just showing what I could do, so it wasn’t really a problem. Accountancy is just cracking fun.
Was it you who approached your Dad?
GRAHAM I think Chris had the advantage of being able to develop the small Carlisle practice we already had. Then when we bought four more, he was able to run his own show. But now we’ve been working together in the same office for the last three years. I’m very proud of him… I maybe don’t tell him enough, but he’s very good at what he does.
CHRIS Oh, no, he was giving genuine hints while I was qualifying. GRAHAM I don’t remember those hints.
CHRIS It was! ‘Don’t forget, you can always join if you You’ve got a real stronghold in Cumbria. Can you ever get bored of London’? (laughs) give me your thoughts on contributing to the wider community? GRAHAM He worked for an American pharmaceutical company for a year, and then he said, GRAHAM We’ve been involved in various things ‘I’ve been fighting this, but I think I’ve got the faulty accountancy gene’. He qualified in London, and they over the years, in particular as joint chair of Theatre by the Lake helping to raise £6.5million to build a were thinking of offering him a partnership, but he said to us ‘I was always going to come back’. Not that 400-seat theatre in Keswick… we also set up our own Grassroots Trust Fund, at Cumbria Community he ever told me… Foundation. We chip in money every year. The CHRIS You never asked! interest and the amount we chip in goes to 5 or 6 projects a year in Cumbria. When you joined your Dad, did you feel like it was a family business environment, or was it just CHRIS We re-did the Parish Hall which was unusable, working for your Dad? so we put 16 drug-and-alcohol dependent children on a rehabilitation scheme. We want to make sure we do CHRIS Yeah, I think most of the staff had known me these things for the right people. since I was knee-high to a grasshopper, so the team
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GRAHAM We’re currently funding an area I grew up in, trying to give something back to the local area and raising the confidence and aspirations of its young people. CHRIS … and there’s high unemployment. We’ve had 53 internships over the last few years and the highest number was 12 in one year, but effectively I think it’s only about four this year because everyone’s been! (laughs) It’s often tricky for fathers and sons to work together, because of how men are. What do you think is the secret to being able to work together well, and live as a close family? GRAHAM Well I get joy from him being successful… it’s not a competition, we’re not trying to prove anything to one another, I don’t think. So I think we both enjoy success for each other. I love him dearly and I’m very proud of him. That’s twice he’s said he’s proud of you now! CHRIS I’m choking up. But I’m driving, you see. He needs a lift home. GRAHAM It’s a long walk from here. CHRIS I think looking at a number of other family businesses where fathers and sons are involved, there’s no trust, just a lot of ‘once you’ve proven yourself, you can have a go.’ There’s no confidence, whereas with us, if something doesn’t work, we don’t beat each other up about it, we just tie a knot and move on. GRAHAM I think my Dad had a really good Victorian work ethic, and I think that’s been passed on to us… there’s never been a time when Chris hasn’t worked hard. I think he worked hardest in the first year at University, because he was trying to impress Alison... and it worked, mind you... CHRIS And then I coasted for the rest! (laughs) No, a family business has custodial requirements… I do end up working long hours but it’s not work for me, it’s just fun. GRAHAM If one of our clients is in difficulty, we’ll go that extra mile and go and see them. It doesn’t stop outside of 9-5. We got a new client- well, Chris got a new client… CHRIS It’s obviously going to be ‘we’, because it’s a good one. (laughs)
GRAHAM Yes… so Chris got a client, a chap from London, who had sold this property and was told he had a tax bill of £86,000. We get a call from his mortgage broker 7 days before the tax return filing deadline, and we then did some digging. CHRIS Asked the right questions. GRAHAM Asked the right questions, that’s the trick. Because we do, Chris managed to reduce the tax bill from £86,000 to £16,000. Some people just don’t know the rules! Years ago, we took over a case… all these top employers had set up a particular type of company. I’d written a paper years ago, and because I’d researched the taxation of this type of company for the Institute of Chartered Accountants, so I could say ‘they shouldn’t be paying any tax.’ There’s this mutual trading exemption, so if all six members traded with each other and didn’t trade with the outside world, there shouldn’t be any tax payable. So we amended the calculations, and the taxman agreed that we were right, and they got a £160,000 tax refund. That’s the sort of thing we do, because we’ve done our homework. We know the rules. CHRIS What we’re trying to do is create a sustainable family business that fulfils our hopes, goals and dreams and those of our staff and clients. My Uncle’s words always ring in my ears… he went to Oxford and Harvard Business School and Dad asked for his advice, as we were finding it difficult to recruit at the time. He said that he had two pieces of advice for us: 1. Get out of accountancy, and 2. Get out of Cumbria. Since then we have doubled in size. What a hoot! www.lamontpridmore.co.uk
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Refreshed and ready to make family businesses famous, Amalia Brightley-Gillott returns from maternity leave as Managing Director of Family Business Place. Alec Pitman finds out more
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s Guest Editor of Generation Magazine, it’s odd to be interviewing Amalia- and that’s ignoring the fact that she’s now my boss. By looking back through past issues, I’ve almost seen her grow into the woman she is today; now at the helm of a business she helped her mother build from the ground up. ‘I think all the time I was ghost-writing for Mum’s old business partner, I was thinking “this should be ours”,’ says Amalia. ‘I think for him, it was a bit more of a side-line project, so even back then I felt like I was working on something that was going to be mine someday. Now this is our ship, so no pressure!’ Initially starting as Anita’s PA while she ‘looked for a real job’, Amalia soon found herself getting more and more involved with early FBP by writing for the magazine. ‘It wasn’t really the traditional route… whilst I was growing up, it was just that Mum had a business and I never thought I was going into it. I probably thought I was going to run my own, just because I thought that’s what people didit happened by osmosis, really. 10 years later, here I still am!’ Would you say that entrepreneurship is normality for you, then? ‘For us, certainly. My grandmother’s from Hong Kong, so she came over here, barely speaking any English and not knowing anyone. She told Mum and her sister to do well at school and get good jobs, like as a secretary, or a teacher, or a nurse. So I think it was a bold move for Mum to start her own business. For us it was just second nature, that was just what people did- because of her, we never thought that we couldn’t.’ What comes with being second generation? ‘I think for most people in the same shoes, there’s a real sense of responsibility. Anita’s spent ten years building the business, and I’ve been alongside her, but it’s her baby. If you’re taking over the mantle, you have to respect that, but there’s also the responsibility to bring
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RETURN something new and make the business better. You never actually own a family business, you’re just looking after it for the next generation, and you should always try to leave it in a better condition than when you inherited it.’
(L-R) Olympia, Amalia and Anita
Speaking of babies… stepping back, how did that make you feel? ‘I found it really hard. Hendrix ended up being premature, so when he came sooner than expected I wasn’t prepared, I wasn’t ready to leave. But at the end of the day, when you have a baby, you just have to stop. So I had him, but I personally found it really tough to step back. I convinced myself I was going to go back after three months, and it was a disaster. I had post-natal depression, I couldn’t even cope with getting out of bed, let alone try to motivate a team and concentrate on work. That’s where family business comes into its own. Mum sat me down and said “at the end of the day, you’re my daughter and he’s my grandson. Your best interests are what’s important to me. The business will be fine, it’ll tick along fine without you.” We made the decision to take a full year of maternity off, and come back much better, new, and more invigorated, and really, it turned out to be the best choice for everyone.
How does it feel to be juggling two babies? ‘When you’re a woman running your own business, you expect so much of yourself; you have to run the business, look after your team, bring the money in, raise your family- I think sometimes you have to give yourself a break. I now feel in a much healthier place because of that time off. I have twelve months’ worth of ideas bursting, and Hendrix is now old enough to cope without me being there 24/7- he can go to a childminders’ or spend a day with family. Between the hours of 9-6, I concentrate on my ‘work baby.’ After hours, I concentrate on him and my family. It’s a tough juggle, and I admire women who are able to do both.
What can you tell us about plans for FBP? ‘It’s my job to keep the ship sailing. I see myself as Anita’s gatekeeper- her time is valuable, and family businesses are the people who need her. I want to promote her, and give her time to be an ambassador for FBP. She needs to be out there, face-to-face with family businesses. In the last 10 years, we’ve done so well to build and establish a community of amazing family business friends. I think now it’s time to cement that by launching the membership. Ultimately, we’re here to help family businesses to thrive for generations to come. I think the membership will be great for helping family businesses to connect, help, and trade with each other all under one umbrella. I spent ten years building probably the biggest database of family businesses in the country, and I think it’s time we make more of it.’ www.familybusinessplace.com
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LIGHTS CAMERA ACTION! With their technology now in widespread use in studios over 42 countries, it’s hard to believe that lighting manufacturer Rotolight began life in the garden shed. Alec Pitman speaks with Helen Gammons about her family’s success ‘We launched the company right after the bank crash, which is probably the worst time you could ever start a business,’ says Helen Gammons, financial director of Rotolight. Less than an hour ago, the revolutionary LED lighting technology Anova PRO 2 was unveiled in London’s Celebro studios, presented by the Managing Director, Helen’s son Rod Aaron. Helen and her husband Rod Snr. are well known within the music industry, but with the onset of downloads and copyrights losing their value, the Gammons decided to look elsewhere in the creative sector- turning to Rod’s other passion, photography. ‘He experimented literally on the kitchen table and the garden shed, and the first light we created was the RL48. That goes back nine years ago, but that light is still selling- we’ve sold over 75,000 units of that one! So, from
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that small acorn we decided to switch our focus toward the lighting industry and we started to develop the technology that we felt very passionate about.’ ‘That’s why, alongside all our developments, we’ve taken an active role in pursuing patents. We’ve got about 8 or 9 granted patents now, and a similar number of patents pending, because we’re very passionate about where we’re going with the product. For a small company like ours, to have 20 patents this time next year, that’s pretty mad.’ The brightest LED lights ever launched in its class, The Anova PRO 2 delivers 10,700 lux at 3 feet, and is packed with innovative features for television, film production, and photography. ‘We had everything going for us, but they seemed to all be red markers in terms of the bank,’ she continues. ‘so technology company? Red flag. We do R&D? Big red flag. We’re manufacturers? They don’t like that. And all our assets are intangible: IP, copyright. They don’t understand that either.’ ‘We had to find different ways of funding the business, and we started work with two trade and sales finance companies- If it wasn’t for them, we wouldn’t have been able to grow our business, because we haven’t used any bank funding, and it’s been a huge challenge. We’ve come from zero to a turnover approaching
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£5million, 75-80% of our sales are exports, we’re employing people and growing, and we still don’t get any support from banks, and shame on them!’ All the assembly, quality control and final testing of the technology take place at Pinewood Studios in Iver Heath. Rod Gammons Sr. is the inventor and chairman, with Helen and Rod Aaron Gammons providing ‘a structure’ to support the development of his creative ideas. ‘My son came in seven years ago, really right at the inception of the business. He came into the business quite organically and has really grown into the role he has now. He brings a huge amount to the family business because of that expertise from his MBA studies, so he is exactly the right person to be leading the company as managing director. It suited him best to be in a creative environment that he could help sharpen.’ Rotolight technology is pivotal to many studios in 42 countries around the world. Most recently, the Anova PRO 2 was used in ITV’s Dancing on Ice. ‘It’s not just R&D to us- we develop around conversations and the needs of our customers, and they feed that back constantly to us. It helps give us ideas as to what the market needs and how people are using our lights, and how better we can actually support their creativity. They
can do so many new things, it’s just opening up their minds by being able to be flexible with the lighting technology that we’re developing.’ Rotolight has been recognised by many different institutions, picking up accolades for achievements in technical design and innovation. Their success, according to Helen, is attributable toward shared family values. ‘A harmony exists because you’re all fighting in the right direction, rather than against each other. You’re fighting because you want the best for the business, and to make sure that the ideas are as good as they can be. I think the other element is, most of our staff have grown up with us- a couple of them have got married, onto their second child- we know what it’s like to have young kids and build a business, so we’re very understanding and supportive before they’ve even asked for time off to take care of things- you wouldn’t get that in a normal, HR environment. There’s much more empathy.’ ‘The thing is, it’s so important, there’s so many good business frameworks, and feedback from business schools that you should celebrate your small wins. On any day that you get featured somewhere, or a customer comes back saying ‘look what I achieved with your lights’, it’s brilliant. All these small wins are what makes the difference.’ www.rotolight.com
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COOKING UP A
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Anita Brightley-Hodges catches up with Storm Watches co-founder Anna Lee to discuss the trends affecting the industry and the dynamics of working with her husband Steve. ANNA The watch industry itself is going through a lot of change. There are a lot more brands than there have ever been- a lot moreand also there’s the introduction of smart phones and watches, which have taken a bit of the market segment. So the market itself for analogue watches is shrinking, but there are more and more brands coming on board. So what would you say is making your family business stand out? ANNA I think the product itself, we strive with innovation, always bringing out new products. That’s our game, and that’s why we’re still here. Every couple of years, there’s a new brand on the block, and the more I look back and see how many are still doing well, it’s very few. Many brands have been and gone, I’m glad to be able to say that we’ve stood the test of time. And you’re the person who’s looking after the product and innovation? ANNA Actually, my husband Steve, looks after the design and product production and everything around that, the research and the development and what have you. I look after the sales and the marketing side of things. So when you’re marketing Storm, do you promote it as a family business? ANNA We never used to, but we do now. There are a lot of corporate giants that have multiple brands, working the corporate way. You know: a new CEO comes along, makes new decisions that involve big changes which directly affect their clients, and the clients don’t like that. Two years later, another CEO will change it
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back to how it was. We don’t have that. When our guys are pitching for new business, part of it is promoting the fact that we’re a family run business. We listen more to what our clients are saying, they’re more likely to heard. There’s also that level of care, which allows us to grow and develop together. People like and want to support that, especially if they’re tired of corporate ways of working. What’s the secret to leading an independent business as a couple? ANNA Well Steve and I are both quite strongminded, so we often disagree on how certain things should be done, or if they should be done at all. This can occur in any area, I might want it black, he might want it white; we could disagree on a product or an entire range, or how something should be done… but I think that’s good, because you can just sit around a table and just thrash it out. But we don’t talk shop at home, and especially whilst we’re on a welldeserved holiday... not unless there’s a serious and urgent issue. Was that a deliberate decision? ANNA I think it’s just the way it’s become, because we’ve worked together for so many years. There are boundaries everywhere. One of the reasons Steve and I have been able to work together for so long is because we try not to cross into each others’ areas. We’re both very mindful people, it’s about not overstepping boundaries and to have respect for each other. Working with your husband Steve, what’s the best thing about being a family business?
ANNA Well you do get to choose the direction of where you’re going, and you get to choose your team. I think there’s a certain degree of support from each other, as well, and flexibility… when I had the children, we made it work. How old are the children now? Are they involved in the business? ANNA At the moment, it’s just Steve and I, and we have four kids. Cheyne is at Amazon, Roscoe works in banking, and the other two are studying. Our idea was that they could work with us during their summer holidaysreluctantly! (Laughs). They didn’t have to come into the business, but if they chose to, they had to bring something special to it. If Cheyne or Roscoe chose to, they could bring some new knowledge and ideas with them… but you can never say until it actually happens, can you? I do hope that at least one will join the business. Since you founded it in 1985 to now, are there instances where you’ve felt you could celebrate ‘I never thought we’d have done that’? ANNA I think whenever I meet somebody who I don’t know, but they are familiar the brand, or they have one of our watches, that always makes me feel really good inside. What motivates you? ANNA Personally, I have a background in fashion. Watches are great accessories and that’s been in my DNA to this day. I think it’s important to be passionate about what you do, especially when you’ve done this for as long as I have. I think if you’re really excited and motivated you’ll always do well, because a lot of it is staying power. Plans for the future? ANNA We’re looking at trends in technology, and how we can innovate and keep ahead of the market, people always want to look good. There’s a place for smart watch technology, but phones are getting bigger because of how many things we can do with them. Why would you want to revert back to a smaller screen? It might be good for a certain number of things, but there will always be a place for watches www.stormwatches.com
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ONWARDS AND UPWARDS FORWARDS NOT BACKWARDS Alec Pitman catches up with Adrian and
So you came in on the ground floor?
Rachel Tweedale, the second and third
RACHEL As kids, on Saturday morning we used to butter bread, chop lettuce, all that stuff, and Grandad used to give us a fiver each. When I turned 13 I worked part time at the restaurant. At the time there was nothing really here, so I wanted to experience something else- it wasn’t my intention to work for the family business. Adrian: I never wanted my children to follow in my footsteps. There’s a pressure that comes with family business, a silent pressure. You have to leap the other fences, because unfortunately your other employees won’t. They don’t feel the same way that you do, but can’t let anybody down. It’s our pride, we won’t let it disappear. That’s what Rachel’s got in abundance now.
generation heads of Sleaford’s very own Elite Fish & Chips
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found myself taken aback by just how beautiful the Elite Fish and Chip restaurant is. It strikes a fascinatingly homely balance between modern polish and rustic charm, although, I suppose this aesthetic makes sense. While Rachel is the young entrepreneur leading her grandfather’s business into the modern day, she is adamant that her family’s values remain at the heart of everything she does. As the second generation, when Rachel took over, did you get an insight into what your Dad went through when he passed it down to you? ADRIAN Different circumstances. At fourteen I was frying fish next to my father, and I knew that I was going to take the business on. I then offered Rachel the opportunity to join when we expanded with this unit, because she had just been through University… but she had to learn the business. It’s not as easy as walking in and turning a fryer on every day. Six years down the line, she could step into my role quite easily, but you’ve got to be hands on to learn that. It’s the only way I know.
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RACHEL My view on that is that they aren’t my staff. They don’t work for me, we work together as a team. They see us working in the business every day, rather than just being sat in the office. They feel more of a tie there, they see that it matters to us, and in turn it matters to them. ADRIAN She’s fought the battle though. We had a big campaign against us, vindictive, but we got to the bottom of it. I kept saying ‘you’ll be fine, just don’t listen to what they’re saying, stick to your principles and keep doing what you’re doing. It works.’ We invited every single one of them to this restaurant for a meal, and to have a look around. None of them came- and through
their IP addresses, all linked to a competitor. It happens.
scampi, tea for two, he likes ketchup. You get to know your customers that much that sometimes you don’t even need to give them a menu.
How else does your Dad help you? RACHEL I think some things I’ve learned from him, or at least tried to... often, it’s Dad having an opinion, and me thinking to myself ‘that’s not right’, then finding out in my own way that actually yes, he is, and now I’ve seen and learned it on my own. ADRIAN Rachel will expand this business following the same ethos that we’ve always had. I’ve seen it more and more over the years; family businesses that stick to their principles are successful. If a customer complains, they see Rachel. They’re seeing family. Some customers walk past, making sure to wave and nod at Rachel and Adrian before they leave. It’s rare for the head of a business and to be so familiar with customers. Rachel gestures at some regulars dotted across the restaurant, quietly content in the enjoyment of their meals. RACHEL We were sat here earlier, and I was like ‘two seniors, two mushy peas, mixed bread, tea for two. She’ll have a kids’ fish and chips, he’ll have a senior, Coke and a J20. Tony and Sheila over there will have a haddock, and she’ll have
ADRIAN That’s how you build it, if you can keep that attitude as you grow… you know every customer, some by their names. We might be the only people they see all day… so you make them part of you. Jo says ‘this is my dining room at home.’ I’ve used that as a lot when we’ve spoken to people. If you could say anything to each other in one sentence, what would it be? ADRIAN I love you. RACHEL I love you too. ADRIAN In terms of business, it’d be something to the tune of ‘when I wake up in the morning, I know that my business is going to go forward in safe hands’. RACHEL You know what I’d say to you? ‘Onwards and upwards, forwards not backwards.’ Adrian and Rachel laugh at this private joke, and I catch a glimpse of the deep bond between them- that, I realise, is what makes Elite so special, what will make it stand apart from the crowd and continue to be a success. www.elitefishandchips.com
Royal Warrant
37 Connevans Ear to the Ground
Joel & Son A Stitch in Time
Goring Hotel Lap of Luxury
38 Berry Bros. & Rudd Better with Age
Artistic Iron Products The Carriage Trade
Partridges Upmarket
39 J. Floris By Any Other Name
Kinloch Anderson Scottish at Heart
Shepherd Neame Setting the Bar High
40 C. Brewer & Sons Highly Decorated
A.J. Charlton & Sons In the Grain
James Lock & Co. Hatters Tip of the Hat
41 Truefitt & Hill Right as a Trivet
J. Barbour Wear, No Tear
Holders
Coventry Scaffolding From the Ground Up
Royal Warrant Holders
The Royal Warrant ROYAL WARRANT FACTFILE Interesting facts There are currently 816 Royal Warrant Holders between The Queen, The Prince of Wales, and The Duke of Edinburgh The annual contribution of the monarchy to the UK economy in 2017 was £1,766million, with Royal Warrants accounting for a collective uplift of £193million to UK brands.
Deborah Pocock, Executive Director of the Queen Elizabeth Scholarship Trust, (QEST) gives us an insight into the Royal Warrant Holders Association. The history of the Royal Warrant and the relationship between monarchy and trade can be traced all the way back to medieval times. But it was during the reign of Elizabeth I that the system of Royal Warrants of Appointment as we know it today was established. The Royal Warrant is a document that appoints an individual or company in a trading capacity and is a mark of recognition of their goods and services that have, and continue to be used, by the Royal Household. Royal Warrants of Appointment are granted by HM The Queen, HRH The Duke of Edinburgh and HRH The Prince of Wales and permit the holder to use the Royal Arms in connection with the business. Royal Warrants have a unique status within business, are highly prized and held with great pride. Around 800 companies currently hold a Royal Warrant – from independent craftspeople to global multi-national companies, a significant proportion are family-owned businesses. The Royal Warrant Holders Association www.royalwarrant.org
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THE ROYAL WARRANT Over the years, The Queen has granted 686 Royal Warrants, the Prince of Wales has granted 159, and the Duke of Edinburgh 38 Family businesses account for approximately a fifth of all Royal Warrant Holders Research by Robert Haigh of Brand Finance indicates that some companies may earn up to a 5% boost to revenue as a direct result of a Royal Warrant An academic experiment by the University of Warwick’s Professor Qing Wang indicated that 70% of Chinese shoppers would rather buy a product with than without a Royal Warrant
Royal Warrant Holders
Ear to the Ground A third generation business, Surrey based Connevans holds a Royal Warrant to HM The Queen, as Manufacturer and Supplier of Audio Equipment Deriving its name from original founders Meurig and Connie Evans, Connevans has over fifty-five years of experience and knowledge of working closely with
Lap of Luxury Built in Belgravia by visionary Otto Goring in 1910, The Goring Hotel has the esteemed title of the last grand hotel of the Edwardian era From its hand-woven Gainsborough silks, the award-winning afternoon tea served in its Lounge Bar, to the Linley-designed dining room celebrating only the finest
the deaf community to continually develop their assistive technology to suit their needs. Now managed by son, David Evans, daughter, Mary Cann, and granddaughter, Laura Evans Beynon, Connevans supply their specialist items to countless education and health authorities, charities, public bodies, companies, and private customers. ‘Induction loop’ technology, which is used to feed certain sounds directly to a hearing aid, has been used by Connevans to allow wearers to hear music, television, and conversations through a phone or in person. Visual and vibrating alarm clocks and smoke alarms are also a speciality item which afford more independence to deaf or hard of hearing clients. Having worked with education professionals since their inception, Connevans are currently developing a range of ‘Soundfield’ systems for schools, designed to transmit the teacher’s voice at consistent volume throughout the classroom. www.connevans.co.uk
A Stitch in Time A fabric retailer from humble beginnings, Joel & Son now specialises only in the very best of haute couture fabrics Originating as a stall that sold shirt fabric made from surplus army parachutes just after World War II, few would have predicted that Joel & Son would have a future of great prestige- especially after the owner, Hyman Bull, fell ill in 1952. It was the decision of his 14 year-old son Joel to leave school to take over that saved his family business from jeopardy- and the rest is history. Four generations down the line, Joel & Son is headed by Gary Bull, with son Coby coming in to give the business an online presence and selling platform. As Supplier of Fabrics to HM The Queen, the business is the biggest couture fabric store in Europe, with connections in Italy, Switzerland, and France. Never too far from the spotlight, Joel & Sons work closely with virtually every fashion week designer on the scene today, as well as supplying fabrics for many Oscar-nominated costumes across film and television. www.joelandsonfabrics.com
examples of British cuisine, everything about The Goring is impeccably English: right down to its location directly in the heart of London. Widely believed to be the worlds’ first hotel to feature en suite facilities and central heating in every single bedroom, The Goring is also the only hotel in history to have been awarded a Royal Warrant for hospitality services. A royal favourite for over a century, its sixty-nine suites and rooms have accommodated royals from all over the world, most notably during the coronations of King George VI and Her Majesty the Queen. With Otto Goring’s grandson George accepting an O.B.E from Her Majesty in 1990 for services to the hotel industry, the hotel is under the control of greatgrandson Jeremy Goring. The last remaining family-owned luxury hotel in London, it has made its reputation by maintaining an atmosphere of intimacy, warmth, and personalised service. www.thegoring.com
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Royal Warrant Holders
Better with Age Having traded from the same premises as far back as 1698, Berry Bros. & Rudd is the oldest wine and spirit merchant in Britain
Having supplied the Royal Family since the reign of King George III, Berry Bros. & Rudd continues its proud legacy as holders of Royal Warrants to both HM The Queen and HRH The Prince of Wales. With over 4000 wines & spirits at their disposal, the merchant family of No.3 St James’s Street can also count Lord Byron, William Pitt the Younger, and the Aga Khan among their historic customers. Boasting over 300 years of history, the families behind Berry Bros & Rudd have seen two World Wars, and have direct links with Napoleon III, the Titanic, and the 1920s American Prohibition. Not that the business is only a record-breaker in terms of its longevity- in 1967 it became the first wine merchant to build temperaturecontrolled wine cellars, and in 1994, was the first to open an online shop. Known for creating the immensely popular Cutty Sark whisky, Berry Bros. & Rudd continue to sell to many of the same families that have been purchasing its wines for generations. www.bbr.com
The Carriage Trade As carriage builders to HRH The Duke of Edinburgh, Artistic Iron Products also specialise in metal conservatory furniture Whether serving pleasure drivers or international level carriage-driving competitors, Artistic Iron Products are experts in the manufacture of carriages; with all painting, woodwork, metalwork, upholstery, and assembly done at their base in Nottinghamshire. Some noteworthy patrons in the last 46 years include members of the British Monarchy, The Sultan of Brunei, and the
Upmarket Originally opening in Chelsea in 1972, grocer Partridges was awarded its Royal Warrant only 22 years later; now run by the founder’s brother, John Shepherd Having held the title of ‘Grocers to Her Majesty The Queen’ since 1994, Partridges has made its sterling reputation from selling, importing, and exporting the very best of local, British, and international foods worldwide. One of the last remaining familyowned grocers in central London, Partridges also have their own unique
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Disney Corporation. As pioneers in their field, the Mart family have been responsible for many features of carriages today considered commonplace, such as the ‘back step’, which allows a passenger to stand behind a driver to aid stability; the aluminium wheel, which is lighter and stronger than wood, and carriage powder coating, which enhances paint finish and durability. Artistic Iron Products expanded into the manufacture of metal conservatory furniture in 2001. Second generation sisters Sue and Wendy Mart now split the running of Bennington Carriages and Furniture between them, respectively, though continue to compete nationally and internationally for Team GB in Single Pony Carriage Driving Trials. www.bennington.co.uk
branded products, including tea, biscuits, preserves, bags, and most recently, their Chelsea Flower Gin. If their pride in their Royal Warrant wasn’t obvious enough from their packaging, Partridges try to stock products from as many Royal Warrant holders as they can. John Shepherd was appointed president of the Royal Warrant Holders Association in 2007; taking the title of Honorary Treasurer for five years after the year-long tenure. As well as a terrace café, wine bar, delicatessen counter, and range of American goods, John’s three daughters also run Shepherds Markets and Startisans, a site based in Covent Garden which gives artisan food start-ups the chance to test their mettle in a real market environment. www.partridges.co.uk
Royal Warrant Holders
By Any Other Name Founded nearly 300 years ago by Juan Floris and his wife Elizabeth, the perfume shop, J. Floris is still operating under their ninth generation descendants
Situated on Jermyn Street in the elegant quarter of St James district, Floris’ perfume and combs were immensely popular among London’s distinguished elite. As well as their Royal Warrant to King George IV as Smooth Pointed Comb Makers, other famous customers over the years have included Frankenstein author Mary Shelley, Florence Nightingale, Sir Winston Churchill, and when the brand was gaining popularity in the US in the 1950s, Marilyn Monroe. The only perfumers to hold Royal Warrants to HM The Queen and HRH The Prince of Wales, the bedrock of the business’ success can be attributed to a leather-bound book, where each and every one of the family’s fragrance formulas have been recorded from the very beginning. Passed down through each generation of the family to provide inspiration for new fragrances, this allows the current director and ninth generation, Edward Bodenham, to innovate, while still keeping Floris’ consistent quality intact. www.florislondon.com
Set the Bar High Known for brewing award-winning Kentish ales, Shepherd Neame only became family-owned in 1864 - a full 166 years into the brewery’s history The business has always been family owned, just not necessarily by the same family. It’s been passed down through marriage, inheritance and partnerships and has had several different names reflecting that. While current director, Jonathan Neame, is eager to adapt to modern trendsexpanding its range to accommodate the recent mainstream popularity of cider; revamping its classic Spitfire brand; or adopting modern, energy-saving brewing techniques- safeguarding local heritage is also a priority. Believed to own more listed buildings than any other commercial organisation in Kent, Shepherd Neame makes a point of investing in the upkeep of their older properties; preserving time-honoured
crafts like thatching, signwriting, stonemasonry, traditional carpentry and glass etching. As Supplier of Specialist Orders to HRH The Prince of Wales, Shepherd Neame own 322 pubs, bars, and hotels across South East England, produce around 180,000 brewers’ barrels a year (a million pints of beer a week!), and export to more than 35 countries including Sweden, Italy, Brazil, and Canada. www.shepherdneame.co.uk
Scottish at Heart Called ‘The Best of British style and fashion with a Scottish emphasis,’ kilt and tartan-making experts Kinloch Anderson celebrate its 150th anniversary this year First supplying the Royal family as far back as 1903 By Appointment to King George V, the fifth and sixth generations of Kinloch Anderson are proud holders of Royal Warrants as Tailors and Kilt Makers to HM the Queen, HRH the Duke of Edinburgh and HRH the Prince of Wales. Now based in Leith, the original tailoring business gained a good reputation throughout Scotland due to the work of William Anderson and his two sons. The main speciality was the supply of uniforms to the officers of all the Scottish Regiments. The company has developed into menswear retailing, then clothing manufacturing for men and ladies. It was given The Queens Award for Export Achievement in 1979, and now enjoys excellent sales partnerships internationally. Major markets are Japan, Taiwan, China, and the USA. As well as celebrating its Scottish heritage through its fine tailoring of the national Highland Dress, 2010 also saw the launch of its exclusive range of Scotch Whisky. www.kinlochanderson.com
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Royal Warrant Holders
Highly Decorated As the UK’s largest independent decorators’ merchant, C. Brewer & Sons have over 150 outlets across the Midlands, East Anglia, and South England
Founded in 1904 in Sussex by Clement Brewer, a Quaker, the business principles of the future Decorators Merchant to HM The Queen had strong foundations right from the outset. C. Brewer particularly thrived during the restoration period after WWI, with his five sons joining to meet demand. Since then, the consistent focus on family
Tip of the Hat Celebrated for the iconic bowler hat design, the luxury hats of James Lock & Co. Hatters can be spotted in unforgettable images throughout history
As Hatters By Appointment to both HRH The Duke of Edinburgh, and HRH The Prince of Wales, James Lock & Co Hatters is also the 34th oldest family business in the world. Having made its reputation out of three centuries of quality craftsmanship, their hats have graced the heads of
none other than Admiral Lord Nelson, Sir Winston Churchill, Charlie Chaplin, and Oscar Wilde. Favouring designs that marry fashion with function, none of Lock & Co.’s hats quite embody this quite as much as the classic bowler hat. Originally designed to be sturdy enough to protect from lowhanging branches and poacher attacks by Lock’s chief hatmaker, Thomas Bowler, the iconic design has experienced global appeal within the spheres of fashion and show business. A member of the Tercentenarian Club, the seventh generation of James Lock & Co. Hatters continue to run the business through the same shop established in 1676, with the bowler hat still its bestselling style. www.lockhatters.co.uk
values has remained integral to the business’ success. ‘By retaining our status as an independent family business, we have been able to grow at our own natural pace,’ says Chairman, Mark Brewer. ‘This has enabled us to build teams of knowledgeable and helpful people at each branch.’ With a staff now 1000 strong, C. Brewer & Sons continue to supply decorators, traders, and the general public with an unrivalled range of materials, papers, tools, and paints- in particular, its in-house brand, Albany Paints and Wallcoverings, which has enjoyed high regard for over 70 years. www.brewers.co.uk
In the Grain The gates of Somerset-based timber manufacturer A.J. Charlton & Sons are sought after far and wide
Having honed their craft for over 115 years, A J Charlton & Sons have built a reputation on manufacturing beautiful gates that are designed to last. Constructed using kiln dried Scandinavian softwood, the gates are used in various National Trust properties, the National Arboretum at Westonbirt, and Longleat Safari Park. With each of the gates and fencing hand made by expert craftsmen, Charlton have supplied to Royal households for close to 20 years, and have held the title of Timber Merchants and Manufacturers of Timber Gates to HM The Queen since 2000. However, Charlton does not only enjoy nationwide success- Australian businessman Adrian Reis had seen them first in the Cotswolds, and been so impressed by their quality that he tracked Charlton down and contacted them directly. Since then, Reis has set up his own firm in Melbourne, Westbury Gates, which imports and distributes the gates across Australia. www.charltonsgates.com
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Royal Warrant Holders
Wear, No Tear Beginning in 1894, J. Barbour & Sons’ classic wax jackets are still manufactured by hand to this day
Right as a Trivet Mentioned in the works of Dickens and William Thackeray, 213-year old barbershop Truefitt & Hill is a true fixture of London
With premises in various locations across Canada, the U.S., and Asia, Truefitt & Hill is known worldwide for specialising in traditional English fragrances, shaving requisites and grooming products. Carefully crafted in England since the business’ inception in 1805, the
From the Ground Up Formed by Pat Hanifan after serving in the Royal Navy, Coventry Scaffolding was the first scaffolding contractor to hold a Royal Warrant to HM The Queen
With many buildings in 1950 still needing repair from damage taken from WWII, South London was in great need for a new scaffolding company to take the lead in its revival. It found exactly that in Coventry Scaffolding, at the time working only with a second-hand lorry, a handful of necessary materials, and a bombed-out
oldest barbershop in the world became known throughout London for the quality of their gentleman’s wigs, which tended to fit so well that it gave rise to the phrase ‘right as a trivet’- which was a corruption of Truefitt. Having served male members of the British monarchy for nine consecutive reigns, Truefitt & Hill have held numerous Royal Warrants throughout their tenure, and continue to hold the title of Hairdressers to HRH The Duke of Edinburgh to this day. Though the wigs that brought them to fame are no longer in circulation, Truefitt & Hill continue to work with only the very best chemists, designers, and craftsmen to deliver the finest in men’s grooming. www.truefittandhill.co.uk
Setting up shop in South Shields, Scottish native John Barbour made a living in the Market Place as an importer of oil cloth. The business, J. Barbour, soon became so well known for its waxed cotton jackets that they would come to be known as ‘Barbour jackets’ regardless of the manufacturer. Now in its fifth generation, the business is Manufacturers of Waterproof and Protective Clothing to HM The Queen, HRH The Duke of Edinburgh, and HRH The Prince of Wales. While J. Barbour’s origins are rooted firmly in countrywear, it has enjoyed a spike in popularity as an urban fashion item since 2010. This, coupled with its presence in over 40 countries worldwide has resulted in many expansions to its collection, creating a ‘full lifestyle wardrobe’. Despite this broadened range, the waxed jackets remain J. Barbour’s favourite product- even with over 100,000 processed annually, customers have been known to keep their Barbour jackets for years, if not decades. www.barbour.com
Catholic churchyard on Monck Street in Westminster. Now taken forward by Hanifan’s sons, Paul and Perry, Coventry has accrued many feathers in its cap. Work on Buckingham Palace and Windsor Castle have all secured its reputation with the Royal family; but it is its emergency scaffolding work that has secured its reputation elsewhere. Over the years, Coventry have been instrumental in saving lives in bombing attacks all across London, allowing wounded people safe passage out of ruined buildings. Many of Coventry’s staff have worked for the Hanifan family for well over 20 years, with an impressive number working all the way up to retirement. www. coventryscaffolding.com
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For internal and external use, enabling the user to setup different form types whether for creative or corporate requirements. All of this is managed and monitored online with a variety of commands set up to ensure your teams remain efficient as well as providing an easy to use solution.
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experts
Planning a Lasting Legacy Simon Smales discusses the importance of strategy in multigenerational family businesses Simon Smales RBC Wealth Management Specialism Relationship Management Profile Based in London, Simon is responsible for leading a relationship management team that provides integrated wealth management solutions, primarily for business owners and entrepreneurs. rbcwealthmanagement.com
For business owners whose success is the result of a lifetime of hard work, it stands to reason that they will want to leave a legacy that lasts throughout the generations. Unfortunately this is much harder than it seems. Indeed, the evidence suggests that preserving family wealth for the long term becomes far more difficult the further down the line you go. In her report, ‘Beating the odds: Improving the 15% probability of staying wealthy’, Maria Elena Lagomasino found that 85 percent of the Forbes 400 Rich List failed to remain on the list over the course of a generation, while a 20-year study by Williams Group Wealth Consultancy in the U.S. revealed 90% of families had lost their wealth by the third generation.
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Early planning and financial education are essential tools in preventing the loss of wealth as it is passed down
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The statistics are startling, but this does not mean that any single family will suffer the same fate. Given that everyone’s circumstances are unique, there are a number of reasons why a legacy can diminish, spanning both investment management and family issues. On the investments side, wealth can decline as the result of common pitfalls, whether it is portfolio inactivity, over-concentration in a single asset, or perhaps excessive leverage. Equally, overspending by family members or changes in family dynamics can cause wealth to deplete over time. With so many factors at play, there is little doubt that early planning and financial education are essential tools in preventing
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the loss of wealth as it is passed down to future generations. Next generation planning is essential It is clear that most people are focused on ensuring their wealth lasts for their lifetime, but it is beyond this point that there appears to be a lack of vision. Data from the CEB Small Business Owners Survey show that in 2016 almost 50 per cent of HNWI were most concerned about maximising investment returns, while 45 per cent were focused on maintaining their current lifestyle in retirement. Moreover, 40 per cent were concerned about protecting their wealth amid stock market volatility. Perhaps surprisingly, just 15 per cent were most concerned about passing their wealth to their children or grandchildren. How people spend their wealth is a personal choice, but preparation can be key to reducing the complications of building a lasting legacy. RBC Wealth Management’s own research, published in the Wealth Transfer Report 2017, showed that only 26 per cent of respondents have a full wealth transfer
Illustrations by
experts
Illustration by Rhian Stone
strategy in place, while 35 per cent of respondents had yet to begin educating their children about wealth and money. With so much emphasis being placed on preserving wealth for the immediate future rather than creating a legacy that can be passed from generation to generation, it becomes clear why so many legacies quickly disappear. Smart budgeting, smart investing In a workshop at the Family Business Place National Conference, we discussed the issue of why wealthy families don’t stay wealthy across the generations. Delegates attending the workshop were asked several questions related to the common pitfalls made by high net worth investors, such as how much leverage they are willing to take on their personal investments, what they would do with a £10 million lottery win, and how they track their family’s spending. The last point is one that becomes more important in a world of uncertain financial market and economic conditions when many high net worth individuals do not have a structured budget. Nearly half of
those who attended our workshop said they rely on technology to automatically record their family’s spending and keep it in check, while 12 per cent admitted they don’t track spending at all. In our Wealth Transfer Report, 51 per cent of respondents said that budgeting is the most valuable tool in their financial toolkit given that it prevents overspending that can erode their capital base. Don’t put all your eggs in one basket Along with overspending, families should pay close attention to other major risks that can cause wealth to diminish rapidly: overly concentrated investment strategies, excessive leverage and portfolio inactivity. Having too much wealth invested in a single asset comes with significantly more risk than a diversified portfolio and can create unwanted outcomes. While such investments might have grown substantially in the past, there is no guarantee this will continue in the future. Meanwhile, too much leverage can cause similar outcomes; borrowing to invest might have the potential to magnify
investment gains exponentionally, but it can also amplify losses should financial markets turn sour. Conversely, investment inactivity can also prove detrimental to a portfolio as time out of the market can cause an investor to miss out on gains. A large majority of the delegates in our workshop agreed compound interest is the most powerful investment force, with 77% saying that it did more to growth wealth than low interest rates, market timing or rising financial markets. Having a firm grasp of financial matters and understanding the family business is the first step in securing family wealth for the future. Given that our workshop showed 53 per cent of delegates would choose to make children shareholders in their business as a way of transferring wealth to the next generation, and 41 percent of attendees would use a trust structure, it is clear that education needs to play a large part in preparing the next generations for the responsibility of wealth and the best way to secure it for the future www.rbcwealthmanagement.com
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experts
Ownership 10 Things to Think About Tom Shaw and James Freeman Tom Shaw Charles Russell Speechlys
run through the steps you can take in preparation for when the unexpected comes around
James Freeman Charles Russell Speechlys Specialism Advisory and Transactional Work, Family Mediator Profile Tom Shaw is a partner in the Corporate team at Charles Russell Speechlys LLP and James Freeman, Resolutiontrained Collaborative Lawyer and Family Mediator, is a partner in the Family team. www.charlesrussellspeechlys.com
There are some things that just get put off. As a business owner you are a busy person with your focus on running the business and making it a success. But from time to time it’s a good thing to pause, look up and check to see you are looking after your own personal interest in the business. After all, ultimately you are running the business to benefit yourself and your family as the owners as well as looking after your customers and providing jobs and security to your employees. Your ownership interest needs attention too.
Here are our top 10 things to check that you have under control Succession 1 Have you made a Will? If you have, is it current and not ten years out of date?! What happens to your shares (or interest in the business) if you die? 2 Have you checked the company’s constitution and any shareholders agreement? Do they restrict you from transferring your shares or otherwise doing what you intend? 3 What will happen to the business (and its various stakeholders) after you die or if you become incapacitated? Is there a management succession plan and, if so, how would it work in practice? If the business were to be sold what steps would be needed to make it ready for sale? Tax you may have to pay 4 Have you checked that you would qualify for Entrepreneur’s Relief to reduce your
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capital gains tax rate on a sale to 10%? Have you thought about transferring shares to other members of your family (who work in the business) so that they are able to qualify as well? 5 Have you checked whether your interest in the business would qualify for inheritance tax Business Property Relief? If not, how would inheritance tax be paid in the event of your death? 6 Are you and/or your business resident in the UK or overseas? Have you thought about how this would affect the tax on a sale/on your death? 7 Do you want to reward certain employees on the sale of the business? Have you made the incentive arrangements in a tax efficient way? Proceeds from a sale of the business 8 Are you going to give away the proceeds of a sale to your children or anyone else (or to a charity)? If so, how will you structure the gifts to make sure that they are tax efficient and protected from outside threats to wealth like divorce or bankruptcy? Would you want the money to be held safely for the children until they are a bit older? Business partners and other owners 9 What happens to the shares of your business partners if they die? Who would take their place and how would it affect the management (or sale) of the business?
Illustration by Lily Simmons
experts
10 Have you considered what would happen if you (or your business partners) lost mental capacity? Have Lasting Powers of Attorney been put in place? So do set aside some time to look at this list. You might want to book some time into your diary so that you really do get around to it. Take care of yourself and
your interest in your business. If you are interested in finding out more information, please contact one of the team for a free copy of our guide, ‘Connecting Generations: A guide for entrepreneurs and family businesses, which explores this and other topics relevant to business owners in more detail www.charlesrussellspeechlys.com
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experts
Collaborating your way to success Belinda Collins discusses the Belinda Collins Zest The Agency Specialism Strategic integrated marketing communication solutions incorporating creative, digital and content Profile Prior to becoming Managing Director at Zest, Belinda spent many years working in London across recruitment marketing, not for profit, as well as B2B and B2C accounts. She’s dedicated, strategic and knows how to do business. www.zesttheagency.com
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importance of establishing collaborative working principles with your marketing partner from the very outset of the relationship Making the decision to work with a marketing partner can seem daunting. Handing over your lovingly-established brand and reputation to strangers is a big decision. But this is often the first step in an exciting journey to evolve and elevate your marketing efforts to increase leads, brand, influence and market share. Don’t see this as losing control. It’s not about throwing out what has been done before but re-assessing and refining, checking that your strategic marketing approach is still relevant in today’s changing markets. This is about owning that decision to take the growth of your family business to the next level. Have your business priorities and aspirations changed? Does your brand still
reflect your values and how you want to be perceived externally? Does your content need a refresh? These are all questions a good marketing partner can help you find the answers to. Collaboration is the foundation that underpins a best practice approach to good client management. Collaborative client relationships ensure a clear governance structure, increased trust and joint value creation. This will allow your business to effectively and clearly measure the impact and benefits of the relationship over time. While I strongly believe embedded client and agency relationships can lead to incredible results, there are some key considerations to ensure the cultural and organisational fit is right for both parties. 1. Pick a marketing partner that shares your values Be selective with the organisations that you would like to adopt working relationships with – how do they approach customer service and conflict resolution? Do they support local businesses? What is their commitment to Corporate Social Responsibility? This should be extended out even further into relationships with suppliers and any strategic partnerships you hold. When you are all on the same page, the relationship evolves more organically and you encounter less issues.
experts
2. Start as you mean to go on I like to start all new client relationship with a Discovery Workshop. Introductory sessions bring key stakeholders together, giving everyone the opportunity to share their views, and allow your marketing partner to really get to know your family business. By taking a step back to reflect on the brand and direction, drawing out any potential challenges and opportunities and thinking at length about your audience, you gain valuable input and ensure everyone is bought-in to the strategy moving forward. This early transparency means that expectations are clearly communicated and jointly agreed and the whole relationship is aligned towards mutual benefit. 3. You don’t have to do everything yourself Family businesses often fall into the trap of trying to take on too much and see asking for help as a weakness. However, as any good leader will tell you, it is vital to use
the skills within your team to deliver the best results. This extends to skills externally. The smart move is often to invite subject matter experts to come in and offer a fresh perspective, which the family may not see from being too close. This elevates your marketing and its offering to achieve more impactful results. 4. Collaboration as the key to innovation Collaboration is perhaps surprisingly the prime motivator for innovation. When you have the basics right and the working relationship with your marketing partner is grounded in shared values and trust, you often see that this consistency is the ideal footing from which to branch-out and explore new ideas and tactics. Building trust through working as a partnership gives you the space to take ‘creative risks’ together, often to great success and reward. 5. Preparing for the duration Embedding collaboration as a key
component of any working relationship supports a business as it grows and adapts. Establishing a successful relationship with your marketing partner early on ensures they become ‘part of the family’ and that you will be able to rely on their advice and support throughout all stages of your businesses growth, and perhaps more importantly during challenging times. As the visibility of your business grows in this digital age, you want a partner beside you that you can trust should any reputational challenges arise. Ultimately, collaboration is about aligning yourself to like-minded organisations to achieve more together than you could independently. Make sure that you understand and feel confident in your marketing partner’s processes for setting joint goals and milestones, completing work, measuring and reporting on results and ongoing improvement. You should expect them to go beyond the expected. And if it doesn’t feel right, keep looking. www.zesttheagency.com
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prosperity
Harnessing the Talents in your Family Business Properly Professor Amanda Kirby highlights the many benefits that can come from
Specialism Neurodiversity Profile Amanda is a professor of developmental disorders. She is CEO of Do-IT Solutions – a profiling system to screen for strengths and challenges relating to neurodiversity and a parent of two neurodiverse children who have worked in her company. www..doitprofiler.com
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In every family business there will be members of the family who have a variety of talents. Utilising these talents effectively can bring benefit to the business but ignoring potential differences may also generate discord.
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The continuing needs of the business may actually need additional skills that need to be identified
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Professor Amanda Kirby Do-IT Solutions
As Confucius said, “Success depends upon previous preparation, and without such preparation there is sure to be failure.” Harnessing, retaining and growing diverse talents within the family is an important consideration for successful intergenerational working. Entrepreneurial skills may have been the leading quality that enabled the initial development and
growth of a family business, but continuing needs may require additional skills that need to be identified. This article focuses on the importance of recognising this diversity in businesses and the advantages that it may confer. In particular, it focuses on the one in eight people in the general population who may be neurodiverse. Previous generations within the family may have recognised these talents but not ascribed them to being called neurodiverse or having a more specific label such as Dyslexia or Autism Spectrum Disorder. In fact, some family members because of difficulty fitting into a conventional educational setting may have left education early and finding alternative ways of demonstrating skills and talents actually provided them with the opportunity to develop new business solutions. The term neurodiversity includes people who may have Dyslexia (reading, spelling, writing
Illustration by Lily Simmons
identifying and harnessing neurodiverse talent within a business
prosperity
difficulties), Dyspraxia (also known as Developmental Co-ordination Disorder), ADHD (attention and concentration difficulties), Autism Spectrum Disorder (social and communication difficulties), and Developmental Language Disorders.
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Leaving school was often not an easy solution but for some it resulted in a means of finding a workspace that better suited their style of working
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All these conditions often overlap with each other so that every person will have their unique set of strengths. Often the person will have what is described as a ‘spiky’ profile, having real strengths in one area but alongside this possibly having some difficulties in other areas. For example, someone with Dyslexia may be the best person to sell a product, but find it impossible to complete written reports on time. Another person despite being proficient at spotting errors in computer code, become highly disorganised in regards to managing their home life or making a meal for themselves. This disparity can make it harder for other family members to understand the person.
Some neurodivergent brains can offer a unique way of viewing solutions and developing new ideas. More and more entrepreneurs are coming forward and discussing their school experiences more openly, and the difficulties conforming to a set of behaviours.
Defying Convention Leaving school was often not an easy solution but for some it resulted in a means of finding a workspace that better suited their style of working. The dyslexic entrepreneur may be creative and an ideas person. A person on the autistic spectrum may consider new ways of using technology to solve old problems. In reality each person will come with their own set of talents. Growing interest in recognising the benefits that these traits might give a business a competitive edge has meant that some businesses are positively recognising this. In the U.S. some employers are seeking out neurodiversity in the workplace, including Ernst and Young and Microsoft. In the UK at GCHQ in Cheltenham, they have especially focused on attracting people who have Dyslexia and Dyspraxia, seeing that some of them have good spying skills! In any family business, recognising the similarities between generations whilst
also recognising the diversity, is an important factor when considering ways to communicate effectively. Understanding how adaptations may be made as a consequence to ‘the way it has always been done’ can harness everyone’s skills effectively www.doitprofiler.com
experts
Financing your Family Business in 2018
www.tmfbrokerage.co.uk
finance, as opposed to bank loans Before we look at some of the options available to you in order to finance your family business, it is important to look at how important the family business sector is to the UK economy and more so to the local-regional economy. What are important growth prospects, outlooks, & key issues for family business SME’s, according to various business commentators & pundits in 2018?
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Family businesses make a significant contribution to local employment Outlook for 2018
According to a report conducted by Barclays¹, the first-generation familyowned businesses will see their revenues rise to £661 billion in 2018 from £540 billion per year (rise of 22% = £121 billion). This in terms of Gross Value Added (GVA)2 for UK economy will mean a £218 billion (rise of 21% from £180 billion annually). The bank also claims that 1 in 5 of their business customers are a family SME. The Survey conducted by Barclays & CBRE3 also indicates that the number of SME in UK is set to rise in 2018 to 2.65 million. The report also indicated that the first- generation family businesses make a significant contribution to local employment and this will increase to 6 million jobs in 2018. According to the survey conducted by Worldpay4, of around 1,000 of SME’s, more than 50% of owners suggested a very positive outlook, anticipating growth in 2018.
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Bank loans may not be available at the same levels in 2018
Key Finance issues for SMEs in 2018 Access to finance – removal or restriction of traditional form of finance Business Owners - Lack of understanding of finance options available
Your Business Finance Options Firstly, it is important to highlight this that in addition to the five main clearing banks in UK (Lloyds, Barclays, RBSNatWest, HSBC & Santander) there are at least 36+ business lenders that now operate in UK. These include international merchant banks, specialist merchant banks, challenger banks, boutique funders, Independents, P2P platforms etc. The good news is that there is a rainbow of lenders to cater for potentially all types of business finance requirements. Business Financing can be either Debt Funding or Equity Funding. In this part of the article we would focus on addressing the two main issues for SME’s in 2018. As an alternative to traditional bank overdraft and term loan we will look at asset-based finance, its benefits, forms and how it can help SME’s.
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A leaner management structure makes for quick decision making
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Profile Wasim Ahmed is the M.D of Trade & Merchant Finance Brokerage, with 20 years’ experience in Banking & Finance. Wasim is an expert in SME Finance and has extensive experience of financing business of all types & sectors.
of an alternative method of business
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Specialism Asset-based Finance
Wasim Ahmed explores the benefits
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Wasim Ahmed Trade & Merchant Finance Brokerage
However, nearly 52% of the surveyed SME’s, which includes start-ups and early stage business owners shared their concerns that traditional routes to finance, including bank loans, may not be available at the same levels in 2018. The survey also revealed that 30% of the SME owners have experienced difficulties in securing traditional forms of business finance.
Asset based finance can be used to raise cash depending upon the business finance requirement, i.e. working capital, to fund a Management buyout or Management buyin, Acquisition of new business or to fund exports/imports.
experts
Illustration by Lily Simmons
Benefits Availability Asset-based finance is available to all types and size of firms including start-up and early stage businesses. Flexibility The biggest benefit of asset-based finance compared to traditional bank overdraft is its flexibility to grow according to the cashflow requirements of a business. Liquidity Another key benefit of asset-based finance is that it can utilise all kinds of assets within a business, such as inventory, receivables, or other tangible assets to generate working capital and hence, can provide increased liquidity.
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Relationship The sole purpose of asset-based finance providers are to provide for their customers. A leaner management structure makes for quick decision making, and they will work with you. They value your relationship with them. It’s not just finance Due to the vast and varied experience of funding businesses of all shapes and sizes, financiers will usually share their experiences with you to help understand any business growth or finance challenges you may face.
2 Supplier Finance, Working Capital Loans, Peer to Peer Finance (P2P) The message for SME owners is that finance is available to support the growth of your business in 2018. The key is to look beyond your bank and research and seek help from a business finance specialist, who can help you achieve your business finance goals www.tmfbrokerage.co.uk ¹ It’s a family affair - https://newsroom.barclays.com ² https://en.wikipedia.org/wiki/Gross_value_added ³ http://m.londonlovesbusiness.com
Types of Asset-Based Finance 1 Invoice Finance, Factoring Finance, Asset Finance, Stock Finance, Trade Finance
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Types – Asset Based Finance is ideal for businesses
who are B2B, it may have limited or no benefits for business who deal directly with consumers-B2C
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experts
Family Charters Going Forward by Looking Back Anita Brightley- Hodges higlights the value of a family charter Anita Brightley-Hodges Family Business Place
for the good of a multi-generational family business
Profile Anita helps family businesses overcome the issues and challenges they face around succession and next generation integration into the business. www.anitabrightleyhodges.com
Research tells us that only 30% of family businesses successfully transition to the second generation, and only 12% go further than that. In my experience, this can be put down to a lack of forward-thinking, proper governance structure, and possibly the most difficult: honest, direct communication. Let’s be honest- when times are hard, how can emotionally-charged discussions be had in a constructive way? How can succession planning be discussed openly, when speaking honestly could cause bad blood in their work and home life?
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Specialism Family Business Advisory
Shirtsleeves to shirtsleeves in three generations
We see it time and time again- this hesitancy to address ‘the elephant in the room’ is a big reason why 70% of family businesses don’t transition successfully to their second generation. Due to the nature of running a business, often personal family issues go unsaid- and that emotional baggage means that other things, like ensuring family business values are still aligning with each other, fall by the wayside.
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The old adage, ‘shirtsleeves to shirtsleeves in three generations’, comes to mind. The first generation creates the business from scratch, making sacrifices for the sake of a better future. As a witness to their parents’ struggles, the second generation knows the value of hard work, and builds on the success of the first. The third generation, having grown up with moderate wealth without knowing the adversity that came with it, squanders what their parents and grandparents worked so hard to gain. What this comes down to is that the culture created and nurtured by the first and second generations can be taken for granted by the third, resulting in the collapse of the business. Where the first generation knew a culture of purpose, drive, and selling their wares on quality, craftmanship, and service; as the years pass, later generations may need
reminding of the value of these things. Since this difference of understanding could be the root cause of any intergenerational conflict, it is healthy for family members to regularly regroup, and re-evaluate whether the business is staying true to these original values that gave it life in the first place. In my honest opinion, putting together a family charter with the help of an outside mediator can be an excellent way of accomplishing this. A charter is essentially a collection of experiences and history of the family business, as well as their vision for the future- everything that makes the business what it is, and what it hopes to be. While this will need complete buy-in from all members if it’s to be a success, the rewards are well worth the effort. With a charter, the ethos the business and family were built on can be shared,
and better ingrained amongst family members. Most importantly, it promotes open discussion- allowing personal issues to be aired and resolved, and creating an atmosphere of understanding and togetherness.
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Illustrations by Lily Simmons
experts
It’s about long term security, rather than short term gain
This atmosphere is crucial when it comes time to agree policy and governance; which will address everything from ownership and employment of family members, to share transfer and successioneffectively giving directors a ‘road map’ when navigating business decisions in the future. However, a charter is more than just a history book. I like to think of
it as a ‘living document’- after all, your experiences are every bit as valuable as those of earlier generations. As the business grows, difficulties can arisemaking a record of how these difficulties were perceived, addressed, agreed, and recorded can act as a point of reference to any future generations. Whether they are in the successful 30%, 12%, or 4%, a strong culture is the key to any multi-generational business. Our purpose in life, values, hopes, and dreams for the future are all closely wrapped up in the culture created by our family. This is why it’s so important to have a document that sums up the identity of the family business in one place: not just for your own benefit, but for the generations to come. It’s about long-term security, rather than short term gain www.anitabrightleyhodges.com
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Are expert entrepreneurs made or born
something you are born with. As someone with a military background myself, I also wanted to examine the effect that prior military experience has on future entrepreneurial success, providing support for the idea it is a learned skill rather than an innate one. Individuals who start a business having first served in the military are by definition not born entrepreneurs. If this was the case, they would have been unlikely to have put on a uniform in the first place. Career entrepreneurs driven by a vocational compulsion, meanwhile, would strive to build their businesses without allowing any distraction or delay, making it counter-intuitive to first sign up to the armed forces.
Rob Douglas explores the common Rob Douglas MBA Warwick Business School Specialism Relationship Management Profile Rob holds a BA (Hons) 1st Class Honours degree from Durham University and a MBA (Distinction) from Warwick Business School.
mindsets and attributes of successful business founders Existing research into the area of entrepreneurship tends to argue that certain individuals are predisposed to do better than others, through having inbuilt entrepreneurial characteristics. The starting point of my research, however, was to contradict this somewhat with the idea that entrepreneurship is something that can be learned and is not
How, Who, and What Guided by academic research on the influence of psychology, personality, the environment, biology and cognition, the basis for my thesis involved looking at two
One is either suited to entrepreneurship, or they are not
7.
35
92.
no
65
yes
68 Non-military entrepreneurs (%) 56
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sample sets of entrepreneurs, those with a background of military service before starting a business and those without, and comparing their answers to 12 identical questions, followed by individual interviews with selected respondents.
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There are certain influences that improve the potential for success
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As such the study focused more on the subjective than the scientific, with a data set skewed towards qualitative rather than statistical information. In terms of respondents the bulk of the civilian entrepreneurs came from members of Family Business Place, which produced a varied and wide-ranging sample of business people, while the majority of the
ex-military participants were in the earlier stages of their entrepreneurship journey, having started later in life. The comparison and correlation between the two sample sets highlighted some very noteworthy results and distinct differences between those who had served in the military before becoming entrepreneurs to those that had not.
decision making while under pressure with imperfect information, a challenge often faced by entrepreneurs. As all three areas are self-evident during war, testing how these skills transfer from the battlefield into a business environment can offer original insight.
However, consistent with some of the scholarly literature on the wider subject, the study supported the view that anyone can learn the requisite skills to become a successful entrepreneur, although there are certain undeniable influences that improves the potential for success, such as genetic predisposition, environmental context and the ability to identify and then exploit opportunities. It is has been recognised that three key themes that entrepreneurs need to master in order to be successful are leadership; their attitude towards risk and
The findings of the study threw up some perhaps surprising results. I instinctively thought a greater number of the entrepreneurs who had served before starting businesses would think they had acquired their skills solely through tacit experience, education and application rather than being partially or fully inherited. Interestingly, the overwhelming majority of both types of entrepreneurs believe that entrepreneurship is a vocation that one is either suited to or not. While 93 percent of civilian respondents took this view,
The Findings
no
no
14.
29
no
85.
71
yes
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Entrepreneurship is purely genetic
Both 25
49.
Genetic 94
11.
Learned 81
38.
68 non-military entrepreneurs (%)
Both 14
57.
Genetic 57
8.
Learned 29
34.
35 ex-military entrepreneurs (%)
significantly 86 percent of ex-military entrepreneurs agreed that entrepreneurship is vocational. Leadership is seen as an important trait for successful entrepreneurs, and one which is commonly attributed to military personnel. It is therefore surprising that more than half of the ex-military entrepreneurs, 51 percent, disagreed with the view that leadership is the most
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important skill for entrepreneurs. This contrasts strongly with the civilian group where 70 percent agreed with the statement, 29 percent of which were strongly in favour. What can we read into this? It is conceivable that ex-military business owners understate the importance of leadership as an entrepreneurial credential
as they may take it for granted due to their past training and experience. Instead ex-military entrepreneurs suggested determination, idea generation and subject matter expertise were the most important characteristics for success, while other traits favoured by both exmilitary and civilians included resilience; tenacity; vision; innovative thinking; problem solving; passion; courage;
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self-belief and risk taking. Both groups, however, showed similarities in their choice of what successful entrepreneurship means to them, with innovation and wealth creation the most popular answers from the majority of entrepreneurs. The responses to the study across both groups, meanwhile, highlighted a commonality in the reasons for becoming an entrepreneur, with autonomy, freedom, ability to control their own destiny and a desire to be their own boss all key considerations to becoming entrepreneurs. It is therefore not surprising that 69 percent of civilian and 54 percent of ex-military respondents agreed with the statement that entrepreneurs are made not born.
But it is a little too simplistic to take this as conclusive proof. The findings show there are certainly significant differences between the two classes of entrepreneurs. However, we cannot conclude definitively one way or the other whether those slight personality differences in terms of decision making, perceived expertise or view towards leadership would have a universally beneficial effect one way or the other. Success is, after all, measured in very different ways by all business founders. It does, however, become evident that any innate characteristics are unlikely to be sufficient to entirely dictate entrepreneurial success. In virtually all instances, nurture will be required alongside nature to
develop explicit expertise and boost the chances of success. This is as true for leadership as any other function of entrepreneurship. Success will be driven by numerous variables, including individual skillsets and motivations, the operating environment and specific market conditions. In short, there is no set template to make a successful entrepreneur; on the contrary, it is all about acquiring the right skills and mindset to succeed. Extract from: Expert entrepreneurs are made not born: exploring the mindset and attributes of successful business founders by Rob Douglas
Were you influenced by a role model?
68 non-military entrepreneurs (%)
58.82
yes no
41.18
35 ex-military entrepreneurs (%)
31.43
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prosperity
Simon Webley reminds us of the presence of ethics in everyday business decisions Simon Webley Institute of Business Ethics Specialism Business Ethics Profile Simon is Research Director at the Institute of Business Ethics and helps a range of businesses with ethics and their organisations. www.ibe.org.uk
Some people think that business ethics is an oxymoron – like a deafening silence or a jumbo shrimp. They don’t see it as relevant to daily life. Media reports of malfeasance by big business – sinister marketing practices, dodgy tax deals, fat cat pay and manipulative algorithms increase the perception that business ethics has little relevance to our work places. The IBE defines business ethics as the ‘application of ethical values to business behaviour’. In short it is about how business is done. Yet, just as everyone thinks they have a sense of humour, we all think we are ethical and don’t really take the time to consider exactly what that means. Talking about ethics at work can raise different emotions in people: they might be offended (“How dare you? I have been working here for years; no one has ever suggested I was anything but ethical!”) or too busy (“I don’t have time! I’ve got real work to do.”) or just don’t care (“Whatever.”)
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You will often hear people talking about ethical issues without even realising it’s contribution to local employment
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Business ethics is seen as being about misconduct, corruption, black-and-white bad behavior, big issues like human rights, sweatshop labour, or climate change, but there are ethical decisions to be made in the everyday: by the coffee machine, in the staff room, down the pub. You will often hear people talking about ethical issues without even realising it; issues of fairness, trust, conflicts, dilemmas.
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Whether it’s what supplier to go with, asking staff to work late, choosing who to hire or who to fire, whether to bend the rules for a client or take that contract– we are making ethical choices everyday. Let’s explore four of the most common ethical dilemmas, no matter what your job or business. Can you identify with any of them? What did you do in this situation? If you manage people, what would they do? Using these stories can help you discuss with each other the ethical dimensions of the everyday.
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Ethical values are the compass by which we live our life
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Ethics Everyday
Who Comes First? Craig is overwhelmed by the pile of bills in his in-tray. And it’s payday. He looks out from his office at his staff working late to get this big order out on time. Many of them have been with him for years, or their parents worked for his parents. If they can deliver it on schedule, the company will get a big bonus, on top of what they are owed, so it will be worth it. But he knows that with big orders like this, it can take months for the money to come through. He looks through the bills again. He’ll pay his staff, no question, but some of these are going to have to wait. He has warning letters for his car and the children’s school fees. Tariq’s bill is by far the biggest. His firm have always been lenient with him in the past, and Tariq knows he is good for it (in the end). But it’s tough times for everyone in this business, and Tariq had mentioned to him before how in the red he was.
Keeping it Professional Tara needs to find a new supplier. She calls around to get quotes and invites them in to pitch for her business. Danny, the boss of one of the firms, suggests a scoping meeting. “Let’s do it over lunch!” he says. “I always find it really helps to get a clear idea of the brief over a nice bottle of wine. I find the best partnerships are those cemented by friendship.”
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Resisting Temptation Simon is in the pub, when he spots the sales team from Maddison’s – his local competitor – having a very boozy after work get-together. They are being very loud, and he can’t help over hearing them talking about a pitch they are going to make for a big contract. Simon’s sales haven’t been great these past two months. He could do with a new contract, it would make a difference, not just to him, but to his company, which has been struggling to make ends meet. He considers moving tables to find out what exactly they are talking about. Ethical dilemmas arise in the grey areas – the tension between doing the right
thing for your company, customer, family, yourself. This is where your values come in. Ethical values are the compass by which we live our life; they are what is important to us. Our values help us make decisions on which way to go in a situation. Thinking about your values will help you to decide – who would my decision hurt? How would I feel if others knew about it? True, being ethical is not always easy and can take a lot of courage. But beginning to think about these things and by talking them over in your place of work, will help you to live your ethics every day. Don’t let business ethics be a deafening silence! www.ibe.org.uk
Illustration by Lily Simmons
Family, or Business? Sian is looking for a new general manager for one of the family shops. Her sisterin-law has mentioned several times that her son, who has just dropped out of university, would be an excellent choice. “He really needs this,” she says. “He’s been so down since he left college. I know he’ll work hard.” Sian isn’t so sure, and she asks her brother what skills his son has. Her brother is not very complimentary, implying that he might have a drug problem, but when Sian tells him she’s been asked to consider him for the job, he changes his tune. “He’ll be great!” he says. “It’s not rocket science is it? And he is your nephew. You’d be helping him out.”
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Your Pension Scheme: Your Strategy, Your Choice Ben Fowler Western Pension Specialism Pension Scheme Profile Ben has over 20 years’ experience consulting on UK and international pensions and established WPS to provide solutions to family businesses’ legacy and future pension arrangements. www.westernpensionsolutions.com
Ben Fowler emphasises the importance of taking an active role in the future of your business, and the people that are involved within it Reading the news, you would think that your final salary pension scheme is nothing but trouble for your business. Recent high-profile cases for BHS and Carillion have portrayed the pension scheme as a millstone dragging the business into the red, but it doesn’t have to be like that – it’s all about strategy. Of course, every scheme has a plan, but balancing the needs of your scheme and your business means having more than just a funding plan, it’s about creating your own strategy that is right for all stakeholders. So here’s what you should be thinking about.
Taking back control of your scheme It’s easy to think interest rates, unhelpful government intervention, and longevity direction means you have little control over the ultimate success of your scheme, and equally easy to assume the trustees and their advisors are making their own decisions anyway. Trustees play a very important role in scheme management, but it is different to the one you hold. Their aim is to ensure members’ benefit entitlements are met, but only within the parameters of the scheme design and they don’t make decisions impacting the business and the scheme’s future. Your pension strategy needs to take into account the short and long-term needs of both the business and its shareholders, as well as your unique culture and values - which involves looking at it from a number of perspectives.
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Different needs on different horizons In the short term, the impact of scheme funding on the cash needs of the business need to be addressed – alongside the cash needs for shareholders in the form of a sustainable dividend policy. You also need to think whether the cash being channelled into the scheme could be used more productively to manage the underlying liabilities. Increasingly, pension strategy has an important impact on longterm tax planning for family businesses, especially where a pension scheme sits alongside other business assets on the balance sheet. Businesses are normally surprised by how much can be done to improve their position in these areas - undertaking a strategic review of the scheme from the company perspective will normally highlight opportunities to make both immediate and long-term gains. Succession planning is critical to most family businesses. If your company is likely to remain in family ownership, then it follows that a longer-term plan is required for the pension scheme. Even if you can’t fully solve your pension issues within your generation, you can help the next generation by leaving them the legacy of a well-defined strategy, as well as equipping them with the skills and knowledge to see it through to its conclusion. For those that are looking to exit their businesses, the need for the company to take a proactive approach becomes more urgent. It takes longer than you might think to prepare a pension scheme properly for a sale of the business. Buyers are naturally cautious about taking on pension liabilities and a failure to plan can result in a significant, but avoidable, loss of value. There are several reasons why businesses fail to engage when it comes to setting long-term pension strategy. These range from a prevailing sense of helplessness that anything can be done on one hand, to a more confident, but somewhat complacent, view that no company intervention is needed as the problem will correct itself as market conditions improve. Further barriers emerge when it comes to targeting a long-term strategy for
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a full buy-out of the scheme with an insurance company. Whilst this might be an aspiration for most businesses, many believe it’s an unaffordable option. For some family business owners, there is also a reluctance to let go of their pension scheme because of a sense of responsibility towards their current and former employees. All of these views overlook the many different strategies that can be adopted that both reduce the cost and accelerate the journey towards a buy-out, whilst at the same providing the best security that members’ benefits will be paid in full.
What are others doing? The results of a well-planned and wellexecuted strategy can be dramatic. The fourth-generation Vestey Group transferred more than £500m of liabilities off its balance sheet to a leading insurer without any financial contribution from the business and with very significant additional benefits for members. This outcome was all the more remarkable as the trustees’ advisers had estimated a shortfall amounting to tens of millions. How was it achieved? On the face of it, with a series of well-timed transactions in the insurance market. More importantly, it was the culmination of several years of very careful planning and preparation with the company taking an active role in setting and delivering on its strategy.
Three key things to take-away •Take back control of your scheme. Set a strategy that fits with your business and engage with the trustees to develop a strategy that serves the interests of all stakeholders
Illustration by Rhian Stone
•Ensure your pension strategy matches your other plans. Succession planning, business development and shareholder objectives should all be working in the same direction • Targeting a full buy-out of your pension scheme can be both affordable and in the best interests of everyone if it’s achieved as part of a well thought out strategy www.westernpensionsolutions.com
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Small Business and Start-up Awards Donna O’Toole discusses how much Donna O’Toole CEO August - The Awards Consultancy Specialism Awards Consultancy Profile Donna has helped hundreds of household brands, businesses, entrepreneurs and leaders to raise their profile through winning prestigious industry awards. www.craftedbyaugust.com
small businesses can benefit from entering awards In my experience, entrepreneurs and innovators running small businesses tend to fall into two main camps when it comes to entering industry awards competitions: the first is the ‘hungry for awards’ camp who are keen and eager to start filling the trophy cabinet from day one. The second is ‘I’m too small to win awards’ camp who stand back from awards opportunities and watch others walk away with the recognition. Both have their reasons for their approach to awards. Both have their pros and cons.
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If you don’t enter the right awards competitions you won’t have a chance of winning
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The entrepreneurs in the ‘hungry for awards’ camp realise the importance of gaining external credibility for their business, are determined to show the world how brilliant their business, service or innovation is, and have the drive and determination to reach the podium. But... passion and enthusiasm won’t necessarily
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get you everywhere with awards, and they are in danger of falling at the first hurdle unless they have enough results to make them award winners. The entrepreneurs in the ‘I’m too small to win awards’ camp are just as passionate, driven and determined, but perhaps less confident - they see all the big brand names out there winning awards and think they have to wait until they’ve got a few more years under their belt before they start competing.
So what’s the secret to winning awards for start-ups and small businesses? The answer is the same no matter what the size of your business. If you don’t enter the right awards competitions you won’t have a chance of winning - no matter how big, small, old, or new your company is! To win awards when you are running a small business you need to be strategic. Take a bit of the confidence of the ‘hungry for awards’ camp, add it to the caution of the ‘I’m too small to win awards’ camp and what do you get? A balanced and measured approach to winning awards. Work your way through the questions below and take a look at my award suggestions for start-up and small businesses and you never know, it could be you walking away with the next cash prize, mentorship or trophy.
Are you ready to win awards? Do you have a minimum of 12 months financial results? Without at least a year’s financial results that demonstrate that your innovation, business model or service is commercially viable and sustainable, you are simply
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Don’t ignore your history, use it to breathe real life into your award entry
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Illustration by Rhian Stone
Is there an interesting story behind your business? If you have conquered adversity to get your business off the ground, or founded your business based on a new, fun, or unusual approach you could have something special for your award entry. The judges don’t want to hear your whole life story, but if it is connected to the creation of your business it could give you that magic unique selling point that helps you to stand out. Some awards judges are even journalists looking for a great story to promote in their winner’s write-ups, so don’t ignore your history, use it within a
slick storytelling method to breathe real life into your award entry.
Do you have big plans for the future? If you have a clear idea of the next steps for your business and your success is just the start of an exciting journey that you have mapped out - tell the judges what you have planned for the future. When entering awards for small business or start-up achievements the awards organisers are often offering significant benefits to help grow the winning businesses - and they want to find a winner with a solid plan and exciting ideas. Cash prizes, mentoring, export support, and free PR are just some of the benefits of winning many dedicated small business and startup awards.
Have you selected the awards you are most likely to win? It’s so important to make sure you are running in the right race before you spend precious time working on your awards entries or fund outsourcing your awards project to an expert. Check out past winners, look at the awards organisers’
own marketing material, find out who the awards’ target audience is, who the judges are, and what the benefits are of the awards before assessing if the categories and financial requirements fit your business achievements.
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Local and regional awards can be a great place to start when you run a local business
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pitching a ‘good idea’...and there are pitching competitions you can enter, but industry awards will need a bit more - so don’t launch in too early, you need growing revenues to gain serious credibility and buy-in from the judges.
There are brilliant awards run by your local newspapers, magazines and business networks, often appealing to small businesses looking to gain more local customers. Local and regional awards can be a great place to start when you run a local business, so don’t worry if you feel a little nervous or unsure about the awards you enter, you are not alone - planning and preparation is the key to success www.craftedbyaugust.com
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Can giving really be good for a family business? Spoiler: Yes! benefit to all Danny Witter Work for Good Specialism Social Enterprise Profile Investment Banker of 25 years turned Social Entrepreneur. He was also Chair of the UK Corporate Citizenship Committee. Passionate about giving back, his non-executive directorships include Shakespeare’s Globe, The Microloan Foundation, and Shape History. workforgood.co.uk
Reputation is everything when it comes to making a business work, and nobody knows that better than a family business. If your customer sees you in a good light, then you are halfway there. Larger corporations are moving rapidly down the ‘purpose-driven’ route, and using Corporate Social Responsibility as a marketing tool to attract and retain customers who want to spend with brands that align with their own values. Businesses with a clear ‘Brand Purpose’, those seen as making lives better, grew three times faster in value on average over the past 12 years. Many smaller businesses do want to give to back to society and make a difference, but it’s not always easy without designated CSR resource. Everyday pressures take over. And when time and money are tight, good intentions can fall by the wayside. But what if all sizes of businesses could give to charity in a way that’s good for their business too?
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Businesses who regularly give to charities, two thirds saw noticeable positive impacts
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We wanted to find out directly from the very businesses and charities themselves why charitable giving seemed to be the preserve of the large enterprise, so we surveyed people from both businesses and charities to see where the disconnect was. Firstly, one in four businesses surveyed have yet to give, with a failure to see the benefits being a significant factor in making this decision. Increasing your bottom line, elevating customer perception and retaining and
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Small businesses have huge potential to be a force for good
For most, giving doesn’t seem to be all that regular. Aside from the occasional charity bake-sale or ad-hoc donations, giving is often not part of company strategy, especially in small to medium business where margins can be tight and overheads prohibitive. However, it doesn’t require big bucks to make a difference. Alone, small business may feel just that…. small. Yet small businesses make up 99 per cent of the 5.7million businesses in the UK, and each have huge potential to be a force for good. In fact, enabling every business to donate in manageable increments when revenue allows could lead to a ‘give to grow’ movement that could really change things. So we can see the benefits to business giving, but what are the other barriers? With only 2% of charities’ income coming from the business sector, something is amiss. Well for starters; regular giving is a pain. For a business to donate off the back of their sales, there must be a Commercial Participation Agreement (CPA) in place which involves negotiations, admin and legal issues. This can actually result in charities having to turn down donations
Illustrations by Rhian Stone
giving back to some can be of
attracting staff are just a few of the fundamental aims all companies have, and have many tactics to achieve, but charitable giving may not be considered as one of those tactics or credited with helping to drive any of those success measures. Yet out of the businesses who do give regularly to charities, two thirds saw noticeable positive impacts on their profitability, and the more they give, the more benefits they report. Those that donate over 0.5% of turnover were twice as likely to report enhancements in company reputation and nearly 50% more likely to see it help recruit and retain staff.
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Danny Witter talks about how
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that are under a certain threshold, simply because it’s just not viable for the amount of time spent (average of ten hours to secure one donation from an SME) and businesses have enough on their plate without philanthropic efforts actually costing them time and therefore money. What a waste. Charities lose out on vital funding and businesses lose out on long term benefits of valuable PR, reputation building and profits. So out of this, we created another small business to add to the UK’s 5.5 million in order to solve the problem. The Work for Good platform was created to make giving easy, flexible and beneficial, both to SMEs and the charities they choose to support. BTE Automotive is a family run garage service business based in Hampshire. Started by husband and wife team Jan and David Parker 27 years ago, day-to-day operations are now run by their son Barry. BTE Automotive have recently signed up with Work for Good and are building giving into their business in a serious way. Barry comments, “As a family run business, our values are at the heart of what we do.
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donating a £1 for each MOT undertaken this year, we’ll raise more than £3500... and that’s just the start. We’re looking at giving through product sales and ways to get customers involved in choosing which charities we support. It’s a great way to develop trust and develop relationships.’ Work for Good makes it easy for us to build giving into our business. They really connect with the charity and take out the legal and admin hassle. We can focus more time on doing what we do best - serving our customers, supporting our team and growing our business” www.workforgood.co.uk
It’s a great way to develop trust and relationships
As well as offering our customers the best possible service, we also want to give back to the community we serve and the causes that are close to our heart. By
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ANITA BRIGHTLEY-HODGES Specialist advisor to family-owned businesses
Anita works as a personal advisor to those at the helm of family-owned businesses. She works side-by-side with ambitious leaders to overcome their biggest challenges. Giving them the confidence and the tools they need to take their business to the next level.
If there’s trouble in your family business please remember - you’re not alone. Companies everywhere face very similar issues and Anita is here to help you overcome them and move forward.
Whether it’s planning for succession to the next generation or resolving long-standing disputes between family members.
01732 220 120 anita@familybusinessplace.com www.anitabrightleyhodges.com
For a discreet, private conversation:
What keeps you awake at night? What doesn’t is possibly closer to the mark. And what’s more, others in your family are worrying about things too. Through our conversations with family businesses there are many common issues: • Lack of communication around succession plans • Exit options for the senior generation • Rivalry and tension between siblings, cousins and other relatives • Parents unable to take a step back or to completely let go • Competence and commitment of the next generation • Long term survival of the business in the market • Wealth protection • Aversion to risk in the senior generation v innovation and ambition in the next generation • Pressure from shareholders and partners not involved in the business Yes, it takes time and effort on behalf of all parties, but it is vital to create an honest, open and respectful environment; one that supports and encourages everyone to speak their mind. In order to resolve these challenges, as external advisors, we can mediate with all family members, regardless of role or seniority, to feel empowered to raise issues close to their heart and discuss frustrations they may have.
Opening the lines of communication When things are going well, business is booming, and staff and customers are happy, working with relatives can be a wonderful thing. But when times are tough and questions are being raised, it’s rare that people sincerely speak their minds. They agonise over possible fall outs. They worry about hurting others’ feelings as they fear this may cause bad blood, at work and at home. Any rifts between family members working in the business and those outside of it can also have potentially damaging consequences. What’s needed is a healthy, safe and welcoming environment where the ‘elephant in the room’ can be addressed. Issues need to be swept out from under the carpet and any ill feeling towards other family members must be resolved. Finding harmony, however that might manifest itself, is essential. We enable families to talk to each other; no matter how difficult or awkward this may be. By facilitating an environment whereby everyone’s point of view is heard; gets to have their say in confidence without fear of resentment; with cards on the table, we can begin on the path to resolution and plan for the future.
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An extension to the family
Our family will become an extension of yours, working with you to really get under the skin of your business, crafting incisive strategies and stand-out marketing plans. As honorary members, we are with you every step of the way, ensuring that we not only hit targets, but exceed them. Then, and only then, do we consider it a job well done.
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Top 10 tips for thinking about funding when you’re a family business More and more family businesses are using equity investment to help accelerate growth. BGF investor Laura Cockburn lists some things to think about when considering funding.
Consider your options. Not all equity partnerships are created equal Many family businesses are reluctant to involve external investors. Bringing an outsider into a company that’s been in your family for generations can feel like inviting a stranger into the fold. But equity partnerships come in all shapes and sizes – short-term, long-term, minority, majority, controlling, non-controlling. Consider the needs of your business and which model is right for your growth trajectory.
Make sure your investor is aligned with what you want for your business What are your longer-term ambitions? Are you looking to hand the company down to the next generation in the best possible shape, release an existing shareholder or are you potentially looking for a full exit? Do you want to acquire other businesses and can a funding partner continue to support you? Your funding partner should understand your goals and be on the same page from the outset.
Be open to new ideas What else can an equity partner offer you besides money? New contacts, business experience, specific expertise? Think about how your business could grow outside of the balance sheet. Sometimes a single introduction is all it takes to unlock untapped potential and get a fresh perspective.
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Talk to other family businesses We’re seeing a growing trend in the number of family businesses eschewing traditional private equity houses in favour of our offer: patient growth capital, a minority stake, and no forced exit. Ask those who’ve done it about their experience of the investment process, how they’ve used their additional capital, and what they looked for in an equity partner.
Make sure the chemistry’s right Finding an investor isn’t a purely commercial transaction. It’s about finding a partner you can trust. It’s vital that the enthusiasm for long-term success of the company is shared on both sides.
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Be realistic and upfront About revenue forecasts, market dynamics, or improvements that could be made to your business, and don’t hide past failures. There’s more to be learnt from what’s gone wrong than what’s gone right, and a good investor shouldn’t be someone you need to sugar-coat the facts for.
Be clear about your growth plans Whether it’s accelerating a site rollout or building a new manufacturing plant, make sure your investor understands what your ambitions are. It’s difficult to see too far into the future but, as well a plan for the short to medium-term, businesses should think about their vision for the longer-term.
Make your capital compatible with your business needs Think about the right kind of investment structure for your company – one size doesn’t fit all. Equity investments can be flexible and come in all shapes, sizes and structure: growth bonds, ordinary shares, or a mix of equity and loan notes. Talk direct to providers or ask your advisor to help find the right package for your growth plan.
Understand how your potential equity partner is funded Private equity companies will typically look to realise their investments within a fixed timescale to provide a return to their shareholders. Other investors may take a longer-term approach by providing patient capital. Find out who backs the people who’ll be backing you and how the rules around their capital will impact your business.
Maintain momentum Once you have decided on the right funding route, do all you need to keep the processes moving forward. Well- organised information, transparency on opportunities and challenges, and keeping the business trading well will all help you to find secure your preferred funding route. GENERATION SPRING / SUMMER 2018
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When it comes to business insurance, we’re right up your street
Talk to the face not a computer... We’re proud to of been helping Hertfordshire businesses and residents for over 357 years, offering competitive insurance solutions backed up by award winning customer service. Call our friendly team of advisors on 01992 471001 and get a no obligation quote for any of your insurance needs. www.ashbourneinsurance.co.uk @AshInsServices @AshbourneBert
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We don’t sell insurance online, we make sure we sell you the RIGHT insurance everytime!
reviews
How to Make Your Family Business Last As daughter and widow to two family business titans (Ernest Henderson of the Sheraton Hotel chain, and Frank Perdue of Perdue Farms, respectively), American author and businesswoman Mitzi Perdue is nothing short of an authority on family business. Her guide, How to Make Your Family Business Last, is as insightful as it is surprisingly exhaustive- while it still covers important aspects, such as implementing and demonstrating family values into business; there are also sections ranging from handling public speaking, spotting gold diggers, protecting yourself against Internet fraud, robbery, and even kidnapping! Mitzi’s experiences alone would make for a greatly informative read, but the guide also carries a very personal touch: affectionate stories of what made both her husband and father such exceptional men, both as people, and as businessmen. In the hands of a lesser writer, this may have manifested as patronising, or rambling- but everything from the humbly-sized chapters to the conversational tone makes How to Make Your Family Business Last positively shine with genuine warmth, love, and desire to help others in their endeavours. A humble, thorough, and above all accessible read, both current or future family business leaders will find something of value- be it how to conduct their business, how to live as part of one, or how to unlock the potential of the business to live beyond its third generation. www.mitziperdue.com
Single-Minded Infamous on The Apprentice for his harsh criticisms and withering glares, you perhaps wouldn’t expect anyone to describe Claude Littner’s autobiography as ‘inspirational’. Yet, that’s exactly what it is- starting from his dysfunctional school days in France, Single-Minded documents every one of the major business ventures undertaken by Littner right up to the present day, where he is now a visiting professor at the business school that bears his name. A media darling by absolutely no means, Claude’s hard-nosed persona begins to make more and more sense by the page; while simultaneously providing us with a peek behind the curtain. ‘Humanising’ is another word you probably wouldn’t expect to be associated with the book, but there it is- be it as a younger man guarding the remains of his ransacked shop late at night, or of his battle with lymphoma, above all Littner reveals his vulnerability- and the strength that came from it. A compelling read that also happens to feature some Apprentice ‘greatest hits’ from Littner’s point of view, Single-Minded provides a great exploration into the character of one of the most imposing figures in the worlds of business and television. Twitter: @claudelittner
Fuelled by Milk Recounting life in the village of Tewkesbury, the detailed memoirs of Cotteswold Dairy founder and former Mayor, Harry Workman, are as delightful as they are charming. Though he would never see this particular work published, it comes as no surprise why so many readers feel like they are conversing with Harry through his words- his many anecdotes of his neighbours are so warm and personal that you might feel like one of them yourself. Completed by eldest son, Roger, the book brings the historical business into the present, documenting key milestones and interesting stories along the way. Complete with photos of happy staff, charitable endeavours, and community life throughout the decades, it’s quickly clear that Harry’s inclusive and welcoming attitude continues to live on through his family. A heart-warming memoir, Fuelled by Milk is so much more than a simple account- as well as sharing the fantastic life story of two remarkable men, it makes a point of celebrating the lives of the neighbours they love, who spurred them on in its creation. Twitter: @CotteswoldDairy www.cotteswold-dairy.co.uk
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FAMILY BUSINESS BACK IN FASHION F O R Y O U N G F A M I LY B U S I N E S S E N T R E P R E N E U R S MO BRO'S HOT FUZZ
OBLIQUE NEW LEASE ON LIFE
PAULIN WATCHES ELEGANT BY DESIGN GENERATION SPRING SUMMER 2018
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TO THIS WAY UP For young family business entrepreneurs How Millennials are using their immersion in technology to transform businesses, and why it’s key to staying relevant in the modern age
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espite being part of the last generation to remember a time before the Internet, I as a Millennial often take for granted just how much technology is second nature to us. Yet, I’m coming to recognise how much it sets us apart from previous generations- and how that commonality is being integrated to great effect into business models both young and old. During the years when older generations would warn us about the dangers of looking at screens for too long, screens have become near omnipresent in our lives. Where Generation X conducted business over the phone, Millennials are connected by social media to people all over the world, 24/7. Where Baby Boomers had to trawl through libraries, Google gives Millennials access to all the information in the world, instantaneously, from anywhere. Where Traditionalists had to learn manual skills and technical knowhow from their parents, Millennials can learn all they need from a Youtube tutorial- and in some cases, even act as mentors to older generations. Technology will always be evolving at a rate of knots- but even then, what makes the family business so stressful is that people have always bought from people, and will always
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buy from people. Technology isn’t a tool for corporate use; it’s a way of connecting with others, a social platform, a way of genuinely engaging with your clientele, and projecting the unique personality of your business out for all to see. In this modern landscape, having an online presence has become such a vital part of how the businesses of today operate. To me, it’s clear that those who harness the skills of Millennials have the edge in the digital marketplaceand being able to place that trust in younger generations will serve in good stead when Generation Z come knocking.
Alec Pitman Content and Editorial Assistant www.familybusinessplace.com
modest, yet fashionable clothes for Muslim women, Amaliah has become an online platform for British Muslim voices to be heard
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ontinually struggling to find stylish, yet non-revealing clothes for sale in London, UCL student Nafisa Bakkar soon realised just how much she was hearing similar misgivings from her young Muslim peers. Recognising the gap in the market for trendy, culturally appropriate clothing, Nafisa decided to teach herself to code, allowing her and older sister Selina to launch Amaliah in 2016. With a degree in Natural Sciences, Nafisa confesses she never envisaged owning a fashion brand- it was personal frustration, rather than a love of fashion that motivated her. ‘I realised the problem was much bigger than me,’ says Nafisa. ‘It was my personal interest and goal in wanting to work on something meaningful that really helped me shape the business.’
personal and professional.’ However, the potential benefits of Amaliah won’t just affect Muslim Millennials (Generation M). Projected to make up a quarter of the world’s population by 2050; and forecast to spend $327bn just on apparel in only a year’s time, Generation M are poised to be a major influence in consumption, social, and political change. With the sheer wealth of viewpoints shared by Amaliah’s platform, retailers have every opportunity to better understand the needs of this demographic, and how they can adapt accordingly to reach them. Amaliah saw that there was a huge gap in understanding amongst brands and agencies that then led them to launch insights. amaliah.com - a way for brands and agencies to truly understand Muslim audiences.
ON A MISSION ‘Over the years, myself and my sister both grew to become a lot more in touch with Islam. Facing very different obstacles and challenges, we both realised that Islam gave us purpose and meaning to everything we did; it allowed us to believe in the unbelievable. Islam remains our guiding light for all matters,
I think it’s the same story for lots of Muslim women and men growing up in the UK
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‘Both of us have experienced times in our lives where we weren’t practising our faith and we weren’t particularly modestly dressed. I think a part of that was trying to understand how our British identity and our Muslim identity coexist… I think it’s the same story for lots of Muslim women and men growing up in the UK.’ ‘We have a responsibility to educate brands on how to talk to Muslim women and even to work out if they actually need to,’ says Selina. ‘It shouldn’t be just a corporate social responsibility thing. If they genuinely want to do it, then we’ll help them talk to Muslim women in a respectful, empowering way.’ www.insights.amaliah.com (l-r) Nafisa and Selina
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Starting as a clothing website to provide
AFTER A FASHION While the first version of Amaliah is still active, continuing to curate modest fashion finds from wellknown retailers, such as H&M, Asos and Zara, it quickly evolved into a media platform. Now attracting thousands of visitors a month, Amaliah has over 100 contributing writers from the Muslim community- that’s over 100 perspectives, telling stories on love, depression, survival, hope, celebration, living in Trump’s America- all centred around the key message: it’s okay to be a Muslim woman. ‘I always believed there was a bigger mission behind what we were doing,’ says Nafisa. ‘If you listen to the rhetoric in the world now, you realise how important it is for the Muslim woman’s voice to be spotlighted, and for it to exist in a positive light.’
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to revolutionise the way that Millennials socialise in the UK’s capital city
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Founded in 2016 by Romi, Shonil, and Keyu, The Oblique Life is a private members’ club with a difference. Committed to connecting young professionals with premium experiences, but without a hefty membership fee or restrictions to a single venue, Oblique hopes to truly unlock the hidden gems of London to Generation Y. Members gain access to unique events, exclusive benefits in London’s best restaurants, brands, and venues, and most importantly, a network where genuine and sociable people can meet and interact face-to-face. Between Romi’s years in banking, Shonil’s time in a finance graduate program at Unilever, and Keyu’s studies of Spanish and management at University College London, the Sumaria brothers have
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scene, the success of the app can also be attributed to strong network that the three brothers have built together during their time in London. Keyu also plays an integral role in the longevity of the brand with his understanding of the needs of the next generation making sure we are they are constantly attracting the next gen.
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we cannot wait to grow and change the way the next generation socialises
(l-r) Romi, Keyu and Shonil é
The Sumaria brothers are on a mission
a fantastic wealth of expertise to draw from and pool together. With Romi steering the ship in terms of strategy and growth, Shonil and Keyu are free to innovate and develop the business in a myriad of fantastic new ways. Not that the family business culture is anything new to the three- their grandfather founded the East Africa-based Sumaria Group alongside his six brothers. ‘From a very early stage of our professional lives saw the benefits of working with family,’ says Romi. ‘We share the same values, culture, and ambitions. We can be completely honest, and really push each other to the best of our abilities.’ Testament to this is the Oblique Life App, which allows members to easily navigate the city via an interactive map. Partner venues can be searched for and found easily, with a brief overview of details and member benefits available. Additionally, the app provides a finger on the pulse of Oblique, keeping users up-to-date with upcoming events, as well as access to a real-time chat service. Informed by Shonil’s knowledge of mobile app development, digital marketing, and London’s events
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While each of the brothers are clearly in love with London for ‘it’s unparalleled multiculturalism, welcoming atmosphere, and proactive people who are constantly looking to better their way of living’, the brothers plans to make Oblique a permanent fixture, with hubs across the world’s global cities. ‘We’re super confident in our business and really believe we are creating something for the next generation,’ Romi continues. ‘Oblique has just left the starting line and we cannot wait to grow and change the way the next generation socialises.’ www.obliquelondon.com
RISING STARS
GADGETS AND GIZMOS APLENTY In the male-dominated tech industry, the wife-and-wife team behind e-commerce platform That’s Clever stands apart from the crowd- for more reasons than one
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WOMEN IN TECH ‘I’ve always been very interested in running my own shop, but Lorna’s interest in technology has really rubbed off,’ says Jennifer. ‘It’s a growing market as well. So many things Lorna mentions makes me wonder why we don’t have them in our lives already. Now I’m learning so much about it, I’ve realised how exciting and interesting it is.’
Lorna’s interest in technology stems from the five years working for her family’s business, Mr Beams UK; which specialises in wireless LED lighting solutions for both indoor and outdoor use. ‘The skills I learned through the family business were invaluable,’ says Lorna, ‘it’s just it was never my baby.’ Lorna and Jennifer are both adamant that That’s Clever is about creating a sense of community by promoting lesser-known innovations of the tech market, rather than using their platform to just sell. Reviews of products from other sellers offers the chance for exposure for both parties. ‘We don’t just want to copy all the other tech blogs. We’d like to be unique in that sense,’ Lorna says. ‘We want to give people information about technology they haven’t seen, which isn’t plastered everywhere.’ ‘My parents knew that e-commerce was the way to go for me,’ she continues. ‘I was lucky that I had invested money into our family company years ago, which we used to launch this… it was
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actually meant for me to place a deposit on a house one day, but we took the plunge and used it on our own company instead!’
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ast year proved to be lifechanging for Lorna and Jennifer Preston; with their technology start-up, That’s Clever, launched only a few months before their wedding last May. One half news blog, one half e-commerce shop, the business is centred chiefly around independent- and above all, clever- technology that the couple think deserves more recognition. A self-confessed ‘techhead’, Lorna takes charge of the blogging side, Clever News, which focuses on exciting innovations in the technology market, as well as comprehensive product reviews. Jennifer, conversely, utilises her head office experience in the fashion industry to take charge of the buying and product-sourcing side of the business.
the couple have no problem standing on their own
‘It was quite scary,’ says Jennifer. ‘My parents were concerned about the risk, but they’re coming around to it now.’ Naturally, family is always on hand to help and give advicebut the couple have no problem standing on their own. ‘They were all on board, they felt that the idea I had was sound,’ Lorna says. ‘I had large growth plans, and it’s really starting to show that those plans will be met. Something I’ve learned from previous companies is to always be honest with your customers- it’s invaluable for building trust in your brand.’ www.thatsclever.co.uk
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The brainchild of three sisters, Glasgowbased Paulin Watches has reached a worldwide customer base after only three years
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ollowing in similar footsteps of notable sculptor and great-grandfather George Henry Paulin; Eleanor, Elizabeth, and Charlotte’s own artistic roots have manifested in their elegant watch design. Set up a mere four years ago, the five-strong team of Paulin Watches consist entirely of art graduates, and it shows: their watches have caught the eye of buyers as far away as Japan; and from midJanuary, have been on sale at the Museum of Modern Art gallery in New York City. ‘All three of us have always been artistic,’ explains Eleanor, 25. ‘I studied fashion, while Charlotte graduated as a painter and I suppose we viewed watch design as meeting in the middle.’ Following a visit to the Basel Watch Show in Switzerland, Charlotte identified a gap in the market for simple, design-led, affordable watches. A BIG HAND ‘People can use a multitude of digital gadgets to tell the time these days,’ says Charlotte, ‘but many still prefer a watch, especially since they are an accessory as well as having practical use. Men don’t have many options when it comes to jewellery and accessories, and I think that’s why so many enjoy choosing and wearing a watch.’ Beginning in 2014 after two years’ of development, the trio took time and care to translate their ideas into a market context- all while developing their trademark
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design, manufacturing, and their promotion strategies. Now selling from premises in Glasgow’s West End that provides a creative space, office, shop, studio, and leather workshop, Paulin also sees great success from their online shop. 'Often people like to look online then come into the shop and see the watches up close, try them for size, get a feel for the quality,' she continues. 'It helps give them the confidence to buy.'
It’s good to know you always have someone around you can rely on
Sharing the design and management duties between them, Eleanor chose to take the role of managing the dayto-day operations. As her own boss, she enjoys coupling responsibility with creative freedom.
ê Eleanor, Elizabeth & Charlotte
'You can decide to diversify when it suits you and take decisions on behalf of the brand,' she says. 'I’ve been working on new product lines recently and it has helped keep things really exciting. Growing as a brand, seeing your identity go from strength to strength, gives you confidence and drives you on.' She adds, ‘I had no management experience when I started, and it has definitely been a case of trial and error. ‘I’ve learned so much about how to bring a product to the market, getting the timing right, launching at the right moment… but working with my sisters makes it easier. It’s good to know you always have someone around you can rely on.’ Already diversifying into clocks and lamps, the Paulin sisters believe that with proper planning and support, artists and designers from all over can make a living from their creativity. www.paulinwatches.com
RISING STARS
LITTLE BLACK DRESS Setting out to change the restrictive ‘cut and fit’ approach of the fashion industry, Careaux have revolutionised the timeless ‘little black dress’
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RECIPE FOR SUCCESS Charlotte Mitchell has used her social media skills to keep Charlotte’s Butchery ahead of the competition
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unning the high street butchers shop alongside her brother Jamie (28), Charlotte (29) can attribute 40 percent of her business to the exposure gained from her Twitter, Instagram and Facebook accountsall operating under the single online handle, ‘girlbutcher’. Set up in Gosforth, Newcastle upon Tyne, in 2013, Charlotte’s Butchery now employs six permanent staff (not counting seasonal workers), enjoys a growing clientele of younger
luxury stretch lining, Careaux dresses allow for multiple outfit customisations with every purchase. 'Everybody said it was a lovely idea and something they’d never seen done before, and I think it’s some-thing that’s really hit home with women who are struggling to fit a certain size, which I know affects most women.' www.careaux.com
her grandmother, a professional dressmaker herself, Rachel designed and completed a dress from start to finish. ‘My Nana’s style of dressmaking harks back to an era of carefully fitting clothes to the silhouette, and this is something that is at the core of Careaux’, says Rachel. Made in Manchester from UKsourced heavyweight jersey and
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customers, families, and fitness buffs, and has accumulated over 7,000 online followers. ‘Facebook and Twitter allow me to communicate more easily with my clients,’ says Charlotte. ‘Someone might be watching Jamie Oliver’s show and tweet to see if I can stock some of the food they’ve seen on TV. Being connected allows me to give them an answer immediately.’ According to Charlotte and Jamie, siblings in business shouldn’t try to force a formalised business relationship with one another. Between Charlotte’s customer service expertise and Jamie’s keen eye for retail opportunities, their close bond allows them to really make the most of each other’s strengths. ‘As children, you’re taught to share and not be greedy. You need
to remember that as adults.’ she continues. ‘Our relationship isn’t defined by solicitors or contracts, because we trust each other implicitly. We know how each other operate, and we can make better-informed business decisions because of that.’ www.charlottesbutchery.com
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riginating from a desire to express themselves through their outfits, Stretford sisters Rachel (22) and Laura Beattie (29) designed the ‘Careaux’ dress. Featuring a zip around the waist, the sisters’ bespoke take on the ‘little black dress’ can be unzipped and split into a top and skirt, with both halves specifically tailored to fit the individual. While the inspiration came to Rachel in a dream when she was just 14, the opportunity to try her hand at dressmaking came in the form of an assignment for her Art GCSE. With aid from
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(l-r) Olivia and Charlotte
COAST TO COAST Having spent their youth regularly visiting family in Trinidad, UK accountant sisters, Charlotte and Olivia named their bikini brand after their favourite beach TOCO Swim
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s visits to Trinidad & Tobago happened less frequently, the Williams sisters found that
the annual summer holiday bikini shop was becoming more of a struggle. Left with a choice between cheap products available on the high street or expensive import prices from Australia, Charlotte (28) and Olivia (25) decided to launch their own brand last year. With their mango-coloured Kuchela set almost selling out within 24 hours of launch, TOCO Swim are taking the bikini market by storm.
‘My spare room is currently a TOCO warehouse,’ said Charlotte. ‘This is all new to us. We taught ourselves how to use Photoshop to turn our sketch doodles into something digital that factories could work from during the sampling process.’ Having launched TOCO in just eight months with the help of multiple late night shifts and a government start-up loan, Charlotte and Olivia continue to work as audit managers for a top six accounting firm in London. ‘We have been working full time jobs throughout the entire process, and work on this in our evenings and weekends,’ Charlotte continues. ‘We make sure to keep both jobs completely separate. Some people train for marathons in their spare time, we sell bikinis.’
www.tocoswim.com
HOME STRETCH Now in its 18th year, South East Living founder Nigel Styles welcomes his daughter, Molly, into the business
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he property business began when industry veteran Nigel Styles identified a growing demand for imaginatively designed living space around Greater London and the South East. ‘I remember going to show homes as a child,’ says Molly, 23. ‘After university, I was looking for a new challenge and a career path. It came from a cheeky question, to my Dad really considering a place for me.’ Working as Sales and Marketing Advisor, Molly is already using her communication skills to build strong relationships- a great currency for her father’s business.
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‘It still feels surreal, but I’m so proud to be here,’ says Molly. ‘When Molly suggested she would be interested in working at South East Living,’ says Nigel, ‘I jumped at the opportunity. Her work ethic and artistic flair is perfect for the role, and she will assist my company moving forward with different types of scheme, now and in the future.’
Priding themselves on their great efficiency, extensive local knowledge, and contemporary design; South East Living have found a real niche for mixed-use schemes, where commercial and residential space can be accommodated under a single roof. www.seliving.co.uk
RISING STARS
MS Paint, the Mo Bro’s have grown from start-up to success
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ith over 250,000 customers across 78 countries, the Mo Bro’s brand has completely changed the face of the male grooming industry. Yet, while it might be hard to imagine the trio of founders struggling to grow facial hair for the Movember challenge, it turns out that that is the precise reason for the business’ inception. Each with their share of facial hair-related woes, Keval, Kunal, and Suvan scoured the web for high quality, affordable grooming companies that could give stepby-step grooming advice. Unable to find any to suit their needs, the brothers decided to create their own grooming and skincare products, sourced with the finest in natural, ethical, and sustainable British ingredients. Each investing £250 for ingredients, tins, and a wax melting machine, the Dattani brothers started out with a batch of
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Debuting on eBay with a logo designed on
beeswax and petroleum jelly-based moustache wax sold on eBay. ‘We would have been happy to sell one,’ says Keval. ‘We were shocked to wake up in the morning when we found out that all 30 tins had been sold.’ A cost and risk-free platform, Keval recommends eBay to other start-ups for testing initial product appetite. ‘That initial £750 turned into £1500, which then turned into £3000,’ he continues. ‘We ploughed every single penny that we made back into the operation, paying ourselves the bare minimum that we could to afford things such as transport. That helped us to survive those first six months.’ Soon expanding their product line to include butters, balms, oils, shampoos, and conditioners, Keval, Kunal, and Suvan made sure to stay frugal; using personal laptops as work computers, and saving on a Photoshop licence by designing the logo on the very basic graphics editor, MS Paint. As well as compiling and selling reasonably-priced grooming kits, Mo Bro’s online community share grooming tips, routines, and lifestyles with one another. This (l-r) Keval, Suvan & Kunal is all in service to the brothers’
mission to help their ‘beard brothers’ to grow facial hair that they can be truly proud of, at every stage of growth. Concerning the future, the trio are currently working on two books- one about their business story, the other about beard grooming tips. As well as this, they aim to have 1m global customers by 2020.
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when one of us is having a down day, the other two are pulling the business forward
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HOT FUZZ
‘I genuinely love working with them,' he says. ‘running a business is most difficult when there's no trust… when one of us is having a down day, the other two are pulling the business forward. It's also great to have three opinions over two, which prevents deadlocks.' In 2017, Keval, Kunal, and Suvan all featured on Dragon’s Den, securing deals from both Peter Jones and Tej Lalvani. The first time the two dragons have worked together, they each invested £150k for 10% shares. www.mobros.co.uk
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OTHER STUFF
GREAT CONSTELLATION
IN BRIEF TRAVEL
Non-Stop Flight
Australian airline, Qantas, has unveiled the first non-stop flight between Australia and the UK, spanning 9008 miles in 17 hours. While the London-Perth journey misses out on the world’s longest flight by 20 miles, it will pave the way for a London-Sydney flight, which is to be launched commercially in 2020.
DOMESTIC
Elon Musk receives another green light to continue with plans to unite humanity through technology- this time with low-orbit satellites TECHNOLOGY
Elon Musk’s SpaceX has been given formal approval to use low-Earth orbit satellite technology to build a global broadband network. Dubbed ‘Starlink’, the technology can help reach those who live in rural or hardto-serve places where fibre-optic cables and cell towers cannot reach. Approved by the Federal Communications Commission (FCC), Starlink is to consist of 4425 satellites, compared by Musk to ‘rebuilding the Internet in space.’ The global comms system is to become a satellite-internet business
Out of Thin Air
Founded by former Imperial College students, Thin Air uses technology to solve the water crisis. Taking inspiration from a Namibian desert beetle, the composite membrane gathers droplets from the air to condense the molecules into water, which is then collected in a hydrophobic trough. The membrane will be applied to village billboards, house roofs, and refugee buildings.
TECH Speedy Delivery Zipline has developed what is thought to be the fastest commercial delivery drone, with a top speed of nearly 80 miles an hour. Already in use transporting blood and drugs to remote medical centres in Rwanda, the drones are also attracting the eye of big players like Amazon.
TECH
Flexible
Canadian researchers have developed the first flexible smartphone- though still in the prototype stage, the technology could make shattered screens and phones permanently bending in pockets a thing of the past. Christened ‘the ReFlex’, the bendable body will have multiple applications to leisure activities, such as reading eBooks and gaming.
DRIVERLESS CARS Aurora teams up with leading car companies to make autonomous vehicles a reality TECHNOLOGY
Volkswagen Group and Hyundai are the first car companies to partner with Aurora- the company owned by Chris Urmson, former pioneer of Google’s self-driving car. Working to integrate Aurora’s self-driving technology into some of their models, both companies plan to make
that would eventually go toward funding a future city on Mars. ‘This is an important step toward SpaceX building a next-generation satellite network that can link the globe with reliable and affordable broadband service,’ says Gwynne Shotwell of Space X, ‘especially reaching those not yet connected.’ SpaceX plans to release the 4425 satellites into orbit in instalments between 2019 and 2024, expecting to attract more than 40 million subscribers by 2025. www.spacex.com
self-driving vehicles commercially available by 2021. ‘At Aurora, we’re building a driver. We’re not building a driver assistance system,’ Urmson says. ‘We really have a deep understanding of what it will take to actually get to a truly driverless vehicles.’ How these partnerships will operate is that Aurora will function as the central nervous system, while VW and Hyundai will build the body- still designing the vehicles and handling customer interactions, while the tech can develop in relative isolation. Johann Jungwirth of the VW Group says that the company plans to test a double-digit number of prototypes by 2019, upping that figure to triple digits throughout the following two years. www.aurora.tech
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GENERATION SPRING SUMMER 2018