Lady walking on hillside

The family business road to success

How to navigate ‘Lockdown 2.0’

Rebecca Durrant, Partner, National Head of Private Clients
02/12/2020
Lady walking on hillside

Some of the biggest and most successful businesses in the UK are or certainly started out as family businesses. One of the reasons for this is simple, the owners are truly invested as the success or failure of the business has a personal impact for them, their family and generations to come.

Businesses in all sectors have had to adapt to lockdown in different ways but for family businesses it has presented different challenges:

  • succession and next generation planning – the best laid plans pre-lockdown may not now be viable as the market remains uncertain
  • remuneration planning – many business owners have had pay freezes or certainly held off dividend payments but how long is this sustainable
  • tax reform – this could affect business owners on many different levels. While businesses are grateful for the financial support the government has given, they are all too aware that this will eventually need to be repaid but how is as yet unclear.

That said family businesses are nothing if not resilient and adaptable. We have seen some businesses introduce innovative adaptations to product lines, service and delivery that may not always enable them to sustain growth, but are certainly helping them keep going throughout the pandemic.

What should family businesses do?

The future is still uncertain and the road ahead is unlikely to be smooth for anyone. During these uncertain times, family businesses should:

  • protect your cash where you can by making the most of funding opportunities and keeping a close eye on expenditure.
  • look after your people so you have a good team to hit the ground running when things do improve, keeping in touch particularly remotely can be difficult especially when we are all busy and firefighting. A call just to check in can go a long way and help and ease the isolation
  •  to what could be our new normal as we may never conduct business in the same way again. This could have implications for product design, property space and client delivery. The successful business will be those that embrace this change and adapt their businesses to it.

The route for your business journey may have changed but the destination can still be the same!

For more information on the issues addressed in this article or to discuss your circumstances, get in touch with Rebecca Durrant or your usual Crowe contact.

Family Business Focus series

Addressing the wide range of issues, challenges and opportunities affecting your family businesses providing insight on the actions to take to ensure its success.
For more information, visit our Business lifecycle.

How we can help

We can help you navigate the business lifecycle and support you through the challenges and opportunities at each stage of your journey to success. For more information please visit our Business lifecycle or speak to your usual Crowe contact.

Contact us

Our national private clients team provides specialist tax advice to some of the most successful individuals and families in the UK. We understand that absolute discretion is essential and take pride in building long-term relationships with our clients. Get in touch with us today.
Rebecca Durrant
Rebecca Durrant
Partner, National Head of Private Clients
Manchester