You and your family business: what's your succession plan?
Family businesses have a passion for what they do and the determination to make things work
Could you work with your family? Happily, many of us already do as founders, leaders or employees in some of the UK’s 5 million family-owned businesses.
Working with our partners, siblings or children adds a different dynamic. Creative? Yes. Challenging? Of course, at times – yet ultimately rewarding when the results of our shared efforts come through.
So what happens when the next generation wants something different? What’s the future for the family business you’ve built?
At JGA, we help family businesses to explore employee ownership as part of their succession planning, supporting any transition they choose to take. We also enable multi-generational family businesses to work more effectively, day-to-day, at a commercial and cultural level, with our practical people and governance support.
Celebrating your family business
That’s why we’re happy to join family-owned businesses across the UK to celebrate National Family Business Day today (23 September).
Organised by Family Business United, National Family Business Day champions all things ‘family business’ – whether that’s the number of people the sector employs (14.2 million and counting) or the £205bn family firms contribute annually in tax, according to the Institute for Family Business Research Foundation’s latest report.
But family businesses don’t just contribute financially – they’re also a force for good. Throughout Covid their role at the heart of local communities has remained strong.
‘Family businesses have a passion for what they do and the determination to make things work,’ says JGA Associate Lisa Fryer. ‘They are risk takers, bold and confident enough to make tough decisions to keep their businesses alive.’
Securing your family legacy
‘However, family members can struggle to find the right work-life balance and to disconnect at times. They can find separating decisions (especially difficult ones) from personal relationships a particular challenge – alongside succession planning when they have no descendants or their children want a different career.’
At JGA, we help family business owners to explore whether transitioning to employee ownership is the right succession plan for them.
‘Every client is different, but employee ownership can help secure jobs to the community and location,’ Lisa explains. ‘Employee ownership is more likely to retain your family business’s ethos and culture and bring a sense of reward for those who have built it and supported its growth.
Putting your loyal customers first
‘However, the biggest factor in choosing to transition is that family businesses often have a loyal customer base that they want looked after. Employee ownership can enable this more effectively than the M&A or MBO sale options, as your future employee owners already know and value your customers.’
At JGA, we have supported family business clients ranging from Kilnbridge to Moore Care to transition to employee ownership. We enable owners to articulate their family business ethos, vision and purpose, securing employee engagement and creating a strong identity for your brand.