Unique challenges for family businesses
The current downturn is forcing family-run businesses to face unique challenges and re-focus business priorities to ensure sustainability through and out of the downturn.
"Succession plans are usually the backbone of any business plan for a family-run, privately-owned firm, but with the downturn the focus necessarily shifts towards securing survival and sustainability, whilst succession plans take more of a back seat," says Charlotte Prow, joint managing director of The Wilson Organisation with her sister Annabel.
Family businesses account for around two out of three firms in the UK - in the region of three million family firms - and in Britain employ around nine million, making it the single largest group of employees working in the private sector.
"As MD of a family business, I know first-hand the unique challenges that come with running a family business," says Charlotte. "This was one of the main inspirations behind creating The Next Generation Forum jointly hosted by Wilsons and Coutts Bank - we work closely with Coutts and after being invited to speak at one of the Bank's family business seminars in London, we explored the feasibility of setting up our own Next Generation Forum in partnership with the Coutts family business team, for current generation family business owners in the Midlands."
Unique in the Midlands, The Next Generation Forum aims to bridge the gap between the theory and fact of running a family business and the associated succession issues, and present the opportunity to share experiences and concerns.
Mark Evans, head of family business at Coutts Bank, comments: "Over the past few months, we have found ourselves working in difficult and unpredictable economic conditions. Some believe that family businesses are in the best position to ride out this turmoil, having characteristics such as a long-term vision, conservative outlook and low levels of gearing, which contribute to their survival when times become tough. Others believe that no one can escape the threat and unpredictability of the current market and that family dynamics and disputes at this time will ultimately lead to their downfall."
Coutts family business manager Rob Jacob adds: "Having siblings working together in a family business can create a powerful and cohesive management team, yet it brings with it some challenges. The Next Generation Forum is an excellent initiative and is already proving a great success - its focus and objectives very much fit with those of the family business team at Coutts and the template for the Forum is proving so popular in the Midlands, we are keen to explore launching similar programmes across the UK."
Charlotte adds: "In the difficult economic conditions, family-run businesses have to maintain planning and communication throughout the organisation. I appreciate the real benefit of sharing experiences - working in a family business can sometimes be a lonely job and the Forum meetings have proved a good way to forge friendships and new business relationships.
"This year, we are even more focussed on helping family businesses with a programme of Forum events that realistically reflect the issues being faced by family businesses in the difficult economic times."
The Next Generation Forum has its next event on the 9th June 2009, at The Carriage Hall, Perkins Restaurant, Nottingham, with guest speakers Justin Cheatle of John Cheatle Ltd, and Jonathan and David Perkins of Perkins Restaurant and The Carriage Hall.
"John Cheatle Ltd is the UK's largest independent school wear retailer and are based in Leicester," explains Charlotte. "The business founder John Cheatle started the business in 1937 in the Midlands and today the Managing Director is his grandson Justin Cheatle, who is to tell his story about the challenges he and the business faced whilst taking the business through the succession from one generation to the next. Perkins Restaurant has been at the forefront of Nottingham's restaurant scene for over 25 years offering award winning food and service. The business was founded in 1982 by Tony and Wendy Perkins who handed over the reigns to their sons Jonathan and David in 2002."
The Wilson Organisation provides professional independent insurance, financial, risk management and corporate finance solutions to businesses and individuals both regionally and nationally. For more information, visit: http://www.wilorg.com/, or Tel: 0115 942 0111.