In times of economic challenge family businesses know their closest relatives have their back. 

Being a family business doesn’t insulate you against the same challenges that other businesses face. But it does mean you’re more likely to stand firm together when the going gets tough.

Business & Innovation Magazine - in Association with Crowe, invited 20 leaders of family-owned businesses in the region to the prestigious Michelin rated restaurant PRITHVI in Cheltenham to discuss the issues they are facing over lunch, and it wasn’t a surprise to hear that in challenging times, those leading family businesses are more than willing to roll up their sleeves for the battle ahead.

Nick Latimer, Family Business Partner at Cheltenham-based leading audit, tax, advisory and risk firm, Crowe UK, said:

“It was a special moment to be able to get family business leaders together again after the rollercoaster ride of the last three years, and to support a fascinating conversation about the importance of family businesses.

The stories we heard from the family businesses were varied but had a familiar theme – when the chips are down, and when the dust has settled, the family unit comes together to drive the business forward and bounce back better. It made me proud to be there and be part of it.”

Paul Wenham is Managing Director at Tewkesbury-based Geometric Manufacturing – which produces complex components for the defence industry. Paul, an engineer, started the company in 1986 with his wife and father Brian, now retired. Paul’s daughter runs the day-to-day business while he manages the strategic side.

He said: “I think a reason that family businesses seem steadier than corporates in a recession is that we’ve got skin in the game. The family digs deeper for their business when things are hard.”

Simon Hollingshead runs Top Utility Solutions with his wife Sue. The company helps people and businesses cut the cost of their utility bills. He said: “Working together means we can support each other through tough times and enjoy celebrating the successes, it is like working with your best friend.”

That support doesn’t stop at family members. James Poeton-Bridges is a director at the 120-year-old Gloucester manufacturing company Poeton Industries.

James returned to the family business after more than a decade working for technology companies in London. “My father aims to support and give back to employees, many of whom we see as extended family, and I support that. “It’s that culture and the values of a family business which differentiate us from others.”

Poeton’s commitment to its employees may be traditional, but the company’s success is based on innovation. It collaborates on some of the world’s largest engineering projects, developing surface treatments for metals and complex materials.

Cicely Elliot-Berry, who owns Cheltenham based Sibling Distillery with her two brothers and sister, also recognises the value of being a family business. “One of the benefits of being a 100 per cent family owned, and nearly 100 per cent family run business is that we can define our own ethics. During the pandemic we pivoted to making ethanol for hand gel for the NHS. We decided not to boost our prices as some other firms were doing – shareholders might have thought differently.”

| Adapting to the economic challenges ahead

The continuity enjoyed by family businesses is likely to help them as the country anticipates the economically rocky year ahead, as the next generation learns from the experience of the previous one.

Alex Rose is Managing Director at Beard’s Jewellery in Cheltenham. Established in 1804 during the reign of George III and when Britain was fighting in the Napoleonic Wars, it is one of the UK’s oldest family-run independent jewellers.

He said: “All businesses were under pressure during the pandemic, but it was particularly brutal for retailers like us who couldn’t open their shops. “Leading a sixth-generation family business gave me the added pressure of ensuring our family legacy. I don’t want to let the family down, but I can draw on their experience.”

Beard’s Jewellers pivoted its business online and saw a significant recovery in sales.

Maria Mann is the daughter of another long-standing independent jeweller dynasty, Mann Jewellers in Stroud. “As a young girl, I loved trying on jewellery in the shop. I was inspired by my grandfather (now 78) and my father who showed such passion for jewellery and how it makes the customer feel when they buy it. I now help drive the modern side of retail, with its online and social media presence.”

But selling online isn’t easy. Customers compare prices and can’t always recognise the quality offered by established jewellers such as Beards and Manns.

Alex added: “We’re now doing 45 per cent of our sales via e-commerce¬. But for me the customers relationships are important. With e-commerce it’s more likely to be a one-off transaction.”

Ben Hough is a director at Cheltenham based Workplace Interiors which designs and builds offices and other corporate environments. The company was started by Ben’s father in 1993.

“Having a dad working in the business gives us all a longer perspective,” said Ben. “I’ve been through two recessions and am anticipating a third. Dad’s on about number five so we know the importance of bracing ourselves and getting our finances in order.

“It’s great to have the advice of someone who’s been through it before. Perhaps those of us who are younger are a bit braver looking forward, but that’s balanced with the hard-won experience of my dad.”

James Poeton-Bridges agreed. “We had the benefit of “grey hairs” too. My father said batten down the hatches and prepare for 50 per cent loss in sales because we do a lot of aerospace work. That helped us manage our costs which allowed us to get through the crisis.”

Another way to ensure the future is by investing in innovation, which is what Kevin Pope and his brother Tracey have done with Gloucester-based ProTrack Solutions and BioStart security.

“Many logistics companies have problems with people stealing vehicles. BioStart safely shuts the vehicle down when drivers exit the vehicle – even if they leave the engine running. They can’t restart it without fingerprint recognition. We’ve patented the ability to record a fingerprint and send it to any vehicle in the world remotely. The potential market for our product is huge.”

| Through adversity, there is opportunity

James Horwood is a director at Stroud based Kitchen Garden Foods. “Covid-19 had a big impact on us. Restaurants, hotels, trains and airports all closed. While farm shops and delis stayed open, that isn’t our core business, although we sold more jars of jam to farm shops and delis than we’d done in 10 years. People find money for a small treat.

Don Robins is managing director of Printwaste Recycling & Shredding in Cheltenham. The company was established by Don and his brother Geof in 1983 recycling waste from local printers. It has grown to offer wider recycling services and waste management. “The big thing about the economic change we’re going through at the moment and what I’ve seen before is being able to prepare for the opportunities that may come out of it.”

What could the opportunities be? “Possibly more recycling of plastics. With oil prices being so high it’s likely that recycled plastic will be in higher demand.” Such a positive perspective from a company that suffered badly from the Covid-19 lockdown, is admirable.

Printwaste collected from offices, and with people working from home, its business was affected badly. “The family all pulled together, and so did many of our staff. It was heartening and humbling to work with them.”

While many family businesses struggled with lower orders and closed shops, the construction sector kept on building. Michael Carter is Chairman of Gloucester based construction company E G Carter which has now welcomed a fourth generation into the business.

“The government encouraged us to get back to work. Our challenges were around supply chains, labour and materials, and adapting our on-site practices to be Covid compliant.

“I genuinely believe that being recognised as a family business by clients and employees ensured that we were in a better place to negotiate our way through a lot of the challenges. We got deals done with our suppliers because of our previous relationship with them and understanding from loyal employees because of what we stand for.”

Keith Bell Group Chairman of KW Bell Homes, agrees. He set up KW Bell Homes in the Forest of Dean in 1965 and has built hundreds of homes across the region.

Recently the company built and opened a construction training centre in Cinderford. Christened AccXel, it was co-funded by KW Bell and the government’s Getting Building Funding through Gloucestershire’s Local Enterprise Partnership. It is run by Keith’s granddaughters.

He said: “I am really proud to see my granddaughters working in construction and what they are achieving in the family business.”

Michael Carter added: “My youngest son always wanted to join the family business and now my two sons are managing directors. When it came to looking at the succession planning, we had a big family meeting and every option on was on the table: selling, employee ownership buyout, management buyout and the whole family unanimously wanted to keep the business in the family – this was something I am very proud of.”

| Setting an example for others to follow

The 100-years old Hobbs House Bakery is a small baker based in South Gloucestershire with big ambitions. In 2019 it became the only British bakery to be a Certified B Corp, which means it is now legally accountable to prioritise its responsibility to the environment and society.

Director Henry Herbert is determined to set an example and feels that being a family business helps. “I think our food system is pretty broken. We are just one small bakery, but luckily in this area there’s a growing a movement of bakers, farmers and millers – many of us family businesses, who are trying to improve the system. But it’s a big challenge.

“One of our long-term pledges is to buy all our wheat from healthy soils – that’s the soils that are regenerative rather than denuding our land. Modern farming is dependent on fertilizers and pesticides.”

Matt Cleevely, managing director of Cleevely Electric Vehicles, also feels a deep commitment to future generations. His company was born out of the family garage business Cleevely Motors. Now he runs the new business with his wife. They sell, service and lease electric vehicles and are building the business to be more than just a garage.

Matt said: “We are very environmentally minded and try to live as sustainability as possible. We want to create a family atmosphere which has helped us bring more staff into the business because they seem to like the family feel.”

Although not a direct member of the Dunkley family, which owns Cheltenham based beauty product design and manufacturer SLG Brands, Richard Buckland is considered as close to being family as can be by the Dunkley’s.

“When Miles Dunkley couldn’t participate in this family business lunch and suggested I come, it felt right because they’ve made me feel like family.” “They care about all the employees and that’s what makes us feel special.

We’re encouraged to make a difference and are all made to feel like we’re a part of one big family. It’s not just me feeling this, many others have been with the business for years too, and long may it continue.”

“They care about all the employees and that’s what makes us feel special. It’s not just any old firm. We know we can make a difference. It’s not just me feeling this, others stayed for years too, and long may it continue.”

| Don’t expect everyone to fit in

But working for a family business isn’t for everyone, as Paul Wenham at Geometric Manufacturing points out. “Some of those who have come from a corporate background can’t acclimatize to a family structure.

“Working for a family business is unique. You get involved in all sorts of different things, never mind what your job description is. At the end of day, we all do what needs to be done. Some people love that. Others don’t.”

Cicely Elliot-Berry at Sibling Distillery agreed. “We had one girl come to work for us from quite a corporate background. She felt like she needed to read between the lines of our conversations, but we kept saying “Relax, there’s nothing more to everything than what it looks like.”

| Family businesses are not without their challenges

David Jones not only owns a family business, which is celebrating 50 years this year, but his Cheltenham based chartered surveyor and planning consultancy business works with many of them too.

“There can be a lot of emotions tied up in planning and development, especially where families own land and property, and “If you make it feel like you enjoy the job and you show your children that they could also, You can make it feel like  there is a future and an opportunity for them to thrive and carve their own career.” sometimes that takes diplomacy on our part. Being part of a family business, myself perhaps gives me a better understanding of their perspective.”

Anne Johnstrup is co-chairman of Nailsworth-based Truturn Precision Engineering, which was first established in 1960 by her husband Bill and his father. In 1985 Bill and Anne took the business on and changed the name. When Bill sadly died in 1994, Anne continued to run the company. She is now supported by her daughter, Becky Beacham, an experienced engineer.

Becky started electronic assembly before progressing to quality control manager and is now the company’s  commercial director. “Becky came into the business and started making cameras and undertaking electronic assembly. She’s working her way up through the business and loves it.”

Sometimes, rivalry between siblings is calmed when they start working together. Rob Lister owns Lister Communications in Stonehouse with his brother Tom. The company provides telecommunications equipment and services.

“When I grew up with my two brothers. Tom and I fought like cat and dog, and you would never have put us in the same room. “But we still formed the business together. Having argued all our life – fought and competed on everything, we’ve barely argued once in business.

“We’re now at the stage where our children are all in their early twenties. We’re not sure whether they’ll want to work with us or whether our business will be big enough for them. But there’s a home for them, if that’s what they also want, when they can bring a skill back to us.”

James Horwood at Kitchen Garden Foods agrees. “I’d like my children to do exactly what they want to do, not what I want them to do. I wouldn’t be at all disappointed if they said no, of course I don’t want to make jam.”

Henry Herbert added: “If you make it feel like you enjoy the job and you show your children that they could also, there could be an opportunity. You can’t force them to do it. You can make it feel like there is a future and an opportunity for them to thrive and carve their own career out of it.”

PRITHVI, is one of Cheltenham’s highest-rated, fine-dining experiences, renowned for its refined and sophisticated approach to dining in an intimate and relaxed surrounding.  Prithvi - "Earth or Mother Earth, in the ancient Sanskrit", where mouth-watering food and an attention to detail is second to none.

This lunch was supported by Crowe UK to bring together family business leaders for mutual discussion over lunch in a relaxed environment.

To start the conversation on how we can help your business, call Nick Latimer on 01242 234421, or email [email protected]

www.crowe.com/uk