Confidence grows for family run businesses

(2 minutes to read)

Although Covid-19 is still having an impact on family businesses, directors are far more optimistic and the outlook is far better than expected at the start of the crisis.

Despite many family businesses being pessimistic about their survival at the beginning of the pandemic, they’re actually emerging from the Coronavirus crises stronger than they predicted.

RSM and Nyenrode Business University surveyed family businesses in April, delving into their thoughts on the pandemic’s impact on revenue, employee numbers and profitability.

The researchers then repeated the survey with the same group of family business directors three months later.

They found that family businesses are significantly more positive about their economic situation now than three months ago with the impact on their businesses not as dramatic as expected.

Looking at revenue, family businesses feared an average loss of 36% in April but in June 2020, the loss of revenue is only 3% compared to the previous year. The directors also expected the number of employees in the business to decrease by an average of 8.2% but in reality, they only decreased by 0.5% on average.

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In April, the family businesses also expected their annual profit to decrease by 42% but, three months later, they now predict a loss of only 5%. In fact, 35% of the family businesses now expect an annual profit growth compared to 2019.

Roberto Flören, RSM Professor of Family Business and Business Transfer at Nyenrode, said, “Family businesses are characterised by flexibility, financial independence, and rapid decision-making, so they often emerge from crises better than non-family businesses. In fact, 61% of family businesses indicate that the coronavirus crisis has led to lasting innovations within the business.”

Laura Bles-Temme, Head of Tax at RSM, added, “The results show the drive of family businesses to keep their head above water in times of crisis. Emanating and giving confidence and continuing to innovate and do business, even in difficult times, are strengths of family businesses.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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