Some interesting facts for Family Businesses of 2024.

Here are some facts and figures related to family businesses in the UK in 2024 and the impact of engagement with Business Improvement Consultants and Coaches:

1. Family Businesses in the UK

Fact: Family businesses make up 87.6% of all private sector businesses in the UK, which amounts to about 5 million family-run companies.

Why teaming up with Coaches and Consultants is Important: With such a large portion of UK businesses being family-run, these companies play a vital role in the economy. Business improvement coaches help them professionalise and become more resilient in an increasingly competitive market.

2. Succession Planning Issues

Fact: Around 30% of family businesses successfully transition to the second generation, but only 12% make it to the third generation.

Why: Succession planning is one of the biggest challenges for family firms. A business coach can improve these odds by helping family businesses prepare the next generation for leadership roles, creating succession roadmaps to ensure a smooth transition. Make them aware of their true wants and needs whilst supporting the team in being aligned to the vision of the business.

3. Growth and Expansion

Fact: Only 42% of family businesses report being able to scale successfully beyond their local markets. It is often a 'head down, bums up' ethic as it was in the beginning. This means businesses are missing out on opportunities.

Why: Hiring a business improvement consultant helps tackle scalability challenges, offering strategies to break into national and international markets by implementing growth-focused processes and systems.

4. Professionalisation and Structure

Fact: Around 67% of family businesses struggle with formalising processes, often relying on informal management styles, this is ok short term but stagnates a business and holds its back from its true potential.

Why: Business improvement consultants help implement professional structures such as formal reporting, standard operating procedures (SOPs), and clear financial planning, which can significantly enhance operational efficiency and growth potential.

5. Leadership Development

Fact: 58% of family businesses cite leadership issues as a primary barrier to growth and stability. They continue doing things the way 'They've always done it'. Those in the business haven't received any development or moved on in leadership styles.

Why: Business coaches can significantly reduce this figure by providing leadership development and mentoring to ensure that family members in leadership roles are equipped to manage and grow the business effectively, understanding the business in its entirety kin an uncomplicated way.

6. Longevity of Family Businesses

Fact: On average, family businesses in the UK last about 24 years, compared to non-family businesses, which typically last around 12 years. This is heart-breaking and a legacy for the founders should continue with the same passion and belief as the day it started.

Why: Although family businesses tend to last longer, the complexities of managing both family relationships and business operations can cause stagnation and often animosity. A coach can help ensure they adapt and grow, further increasing their longevity and success and professionalism to eliminate the tension in the family.

7. Employee Retention and Engagement

Fact: Family-owned businesses often boast higher employee loyalty, with a turnover rate 50% lower than non-family businesses.

Why: Despite this advantage, hiring a coach can help implement strategies to engage employees better, creating productivity and satisfaction, and further reducing turnover. Family businesses tend to put people in positions they aren't equipped for purely through who they are. A coach can recognise strengths and weaknesses ensuring the team are working to their strengths and in a happy environment.

8. Impact of Digital Transformation

Fact: 44% of UK family businesses feel unprepared for digital transformation, which is becoming critical for survival in many industries. Often it started out with nothing and they've learned along the way. Being in the business tends to shut your attention to outside world and opportunities available, including progression.

Why: Business improvement consultants help family businesses adopt digital tools, from automating operations to improving customer experience, getting them out of their antiquated ways they are set in, ensuring they remain competitive in the digital age.

9. Maintaining Family Values While Driving Change

Fact: One of the biggest challenges family businesses face is balancing the preservation of family values with the need to adapt to modern business practices.

Why: Coaches are skilled at helping family businesses modernise without losing their core values. They work with families to make sure that business improvements align with the legacy and cultural ethos of the family, ensuring that changes strengthen, rather than dilute, the family’s influence and identity in the business.

10. Financial Management and Profitability

Fact: Family-run businesses may struggle with financial transparency and profitability, often due to informal practices and a lack of financial discipline or accounting knowledge.

Why: A business improvement consultant helps instil better financial controls, reporting systems, and profitability-focused strategies. They can streamline financial management, improve cash flow, and create realistic financial forecasts, ensuring that the business is run efficiently and remains profitable in the long term. They take the time to explain things in an uncomplicated way and what is needed for the understanding of the business.

Business Glu was created because they care about helping family businesses succeed. They know from experience the challenges that come with running a family business, like handling family relationships, planning for the future, and making the business more professional. Business Glu understands how to balance keeping family values while helping the business grow. Their knowledge and approach have made a real difference for the family businesses they've worked with, helping them solve problems, improve leadership, and achieve lasting success.