Lord Weatherill on family businesses…

In a 2002 survey by Barclays Bank, Lord Weatherill was quoted on family businesses:

“Family businesses are a distinct and important sector…running a family business can be stressful and emotional, but I can vouch for the fact that, with the right guidance and support, it can be creative, exciting, very rewarding and successful.”

Dispelling the family business myths…

Although not readily apparent from the financial pages of a daily newspaper, family owned and managed businesses are at the core of the UK economy, contributing significantly to GDP, employment and the community at large.  Their importance as a stabilising element of the economy has never been questioned and they continue as the unsung heroes in a constantly changing world.

In fact, some seriously well known household names lead the way as family businesses yet the market continues to portray them as small, family run corner shops.  Many family businesses far exceed this market perception and it is about time the UK recognised the true value of the contribution that family firms make, and took them seriously.

Myth 1 – Family Businesses Are Small Businesses
1 – JCB is now one of the UKs largest privately owned manufacturers and the worlds fifth largest maker of construction equipment
2 – Clarks, the shoe business, employs 12,000 people and owns over 50 shops in the UK and sells 40 million pairs of shoes every year

Myth 2 – Family Businesses Are Not Significant Employers
1 – Samworth Brothers is a leading player in the production of food and generates a turnover in excess of £250 million and employs more than 4,000 staff
2 – Bernard Matthews is a global business with an annual turnover of £400 million and more than 7,000 employees worldwide

Myth 3 – Family Businesses Are Not Survivors
1 – Lodge Brothers (Funerals) Ltd is currently run by the seventh generation of the Lodge family and has been in business for over 200 years
2 – John Smedley celebrates its 225 anniversary in 2010
3 – Shepherd Neame, Britains oldest brewer, began business in 1698 and three centuries on, Jonathan Neame of the fifth generation is at the helm

To read the full article click here and share your thoughts on other household names that help to dispel the myths that are written in the media once and for all.

Do you need a family constitution?

Family businesses of all sizes and in all sectors are recognising the need for professional governance structures to be put in place to safeguard their businesses going forward, and to ensure that everyone is working to the same set of agreed goals and values.

Whilst the degree to which a constitution will be needed tends to vary according to the size and age of the business, it is recognised that all family businesses can benefit from considering the needs to adopt policies in certain areas. 

Successful families running successful family companies have cracked the core family business problem. They’ve arrived at policies that strike the right balance between the best interests of the business and the well-being of the family – and their agreed position on this is generally recorded in a written family constitution. 

Peter Leach, leading family business expert, shares his thoughts on the content and role of the family business in a thought provoking article.   Could you benefit from a family constitution in your business?

The importance of family…

Much has been written about the importance of the entrepreneur’s access to financial capital, as well as educational achievement, to the ultimate success of his or her enterprise. But an often overlooked aspect of success is the family background of the entrepreneur. The children of business owners are two to three times more likely to own businesses than those whose parents don’t own a business.

Clearly, business ownership runs in the family. But does it lead to success? When entrepreneurs work in a family business before starting their own, their businesses are 10 to 40 percent more successful than they would be otherwise. Informal learning and apprenticeship that occurs while working in a family business gives valuable experience for the would-be-entrepreneur. Working in family business provides an excellent way to learn the “nuts and bolts” of running a business—who better to learn from than your parents?

I came across this article on the website of The Journal of the American Enterprise Institute and thought it was good food for thought…

Click here to read the full article.  Do you agree?

Bespoke lingerie from a family business

I never knew that Rigby & Peller are a family run business who pride ourselves on their wonderful customer service until today!June Kenton, grantee of the Royal Warrants has been in the corsetry business along with her husband Harold for over 40 years.

Their son David now supervises the day to day running of the business ensuring that the high standards of Rigby & Peller are continued.

Rigby & Peller currently have stores located in and around London in some of the most prestigious shopping locations including Knightsbridge,  Mayfair, Chelsea,  Westfield, Bluewater and Brent Cross.

As a family business they are also very excited about the growth and success of the business and are looking forward to continued expansion.

Rigby & Peller are famous for the quality of their bespoke lingerie and the innovation of their styling with a very extensive client list including Royals from home and abroad, stars from stage and screen and personalities from the media and fashion world. They are proud to have held the Royal Warrant of Appointment as Corsetieres to H.M. Queen Elizabeth since 1960.

Another great family business that is managing to span the generations too.

Certainly not scrambled…

Farming and food production is one area of the UK economy that continues to see a large volume of family businesses.  One such family business is run by the Elliotts in Bewholme.

Three generations of Elliotts have farmed at Manor House Farm, since the family moved to Bewholme in 1958. Sons Tom and Mark now work with their parents Stewart and Caroline, whilst the youngest member of the family, Phil, is studying Agriculture at University.

The Elliotts pride themselves in producing fresh free range eggs on their farm from hens that are regularly audited by DEFRA, Freedom Food and British Egg Industry Council. The farm also grows wheat that is milled on site to feed their 37,000 free range layers.

“The birds join us at 17 weeks of age and once used to their new home, are free to roam in open fields each day. They have continual access to feed, water and scratch area”, explains Tom. In addition to producing eggs and growing wheat, Tom is responsible for the running of the free range enterprise and Mark for the packing station and egg deliveries.

Another ‘cracking’ family business success story…

Shepherds Purse Blues Scoop Gold!

Artisan cheese makers, Shepherds Purse of Thirsk, North Yorkshire has scooped two Golds for two of its blues at the 114th International Cheese Awards, the largest and most cosmopolitan cheese competition in the world, held at Dorford Park, Nantwich, Cheshire this week.

Mrs Bells Blue won the prestigious Gold standard and recently launched Bells Bluemin White also achieved Gold status, on the back of its recent first win at the Great Yorkshire Show. With more than 3,200 entries across 300 classes and competitors from 24 countries, the wins prove Yorkshire cheese cuts it on the world stage.

Traditionally handcrafted with local ewe’s milk, Mrs Bells Blue won in the soft blue veined cheese UK category and Bells Bluemin White, the region’s first blue rind brie, triumphed in the best English cheese class (other than territorials and Cheddars). The cheeses were tasted and judged by a panel of 140 expert judges from the dairy industry.

Commenting on the wins, Judy Bell, chief executive of Shepherds Purse Cheeses said: “With such strong competition at the largest cheese show in the world, it is really gratifying to have two of our cheeses recognised as gold standard. The credit has to go to the whole team at Shepherds Purse, maintaining the quality of our handmade cheese range.”

Richard Paul, show chairman said: “We had record entries and the standard across the board was extremely high. Our panel of judges really did have their work cut out to make their selections. We will now be working hard to educate consumers on what the Awards logo means, that if they spot it on labels they can be safe in the knowledge that it has the seal of approval which guarantees the outstanding quality of the product.”

Another family business success story!