10
A new generation: playing ’family fortunes’ is now a serious business
Many UK companies have been founded upon the bedrock of family endeavours. But, as each family is inherently different, finding the right family formula for success can be difficult, according to BDO. John Burbedge of The Business Magazine writes
Personal desires and differing business dynamics need to be understood and carefully nurtured if the business is to evolve over the generations as a stable and sustainable business entity.
Over those generations, things change, of course – not least the increasing demands of running a modern business.
Family heritage, traditional ways of working and emotional links do not usually encourage change, but family pride, passion and individual
interests can be channelled as business drivers. If, that is, the family members running the business have appropriate skills and talents, and can bring something beneficial to the boardroom-table.
There is an old saying that: ’You can choose your friends, but not your family.’ Today, in family business terms that might now be rephrased: ’You can choose your business associates, but they won’t necessarily be your family.’
Case study: Bunn Leisure Parks
’I was determined to make a difference, but on my own terms’
The Bunn family name is well known around the Selsey peninsular, and yet you don’t need to wander far into the 300 acres of Bunn Leisure to realise that the JB persona also plays an essential role in the company.
JB is John Bunn, the managing director of Bunn Leisure, the Tourism South East Holiday Park of the Year for the past three years and a £60 million annual contributor to the local economy.
The company began life when John’s father Douglas bought a 20-acre Selsey Bill field from his land-owning father in 1959 and set up the White Horse static caravan park. Douglas, born in Selsey, felt that post-war austerity was over, and people were ready for more holiday breaks and affordable second-home ownership by the sea.
Today, Bunn Leisure’s four holiday parks represent the largest independent holiday village in Europe. It can accommodate more than 12,500 people on a peak season weekend – serviced by a 700-strong staff (350-full time) – and regularly generates a £20m-plus turnover.
Bunn Leisure Parks is unquestionably a family- centric business from its Bunn family ownership and established family trusts, right through to its commercial family-focused holiday and leisure offering, but in management terms it is not a stereotypical family business.
www.businessmag.co.uk
fact, he sacked me five times.“ After formative groundfloor work at Hickstead during school holidays, John headed to the City, while also playing rugby at Harlequins.
However, like John today, Douglas could spot the right man for a key position, and enticed John back to Bunn Leisure in the late 1980s. “Everyone else was making fortunes; we were not.“ JB sorted out the company’s cost- effectiveness – “I was always good at figures. You have to be able to read a balance sheet or people pull the wool over your eyes.“ By 1992 he was joint MD.
Bunn refocused expenditure, rooted out inefficiency, empowered and motivated staff, and head-hunted top industry management talent as required. “You can’t run a holiday park of this size without it being almost an autocracy.“
Bunn redirected the company’s strategy towards selling holidays as well as caravans. “People who buy static units for £15,000 – £100,000 are very different to those who hire those units for a UK holiday, but this business needs both to work properly.“ He concentrated on better marketing and upgrading facilities for all-season use by holidaymakers.
John Bunn celebrates the final rock placement on the new Bunn Leisure breakwater scheme
For one thing, JB is the only member of the Bunn family actively involved in the day-to-day operations of this annually profitable purveyor of family holiday fun.
The reason? Although a practising barrister, Douglas Bunn loved horses and while running the fledgling Bunn Leisure organisation he was also creating Hickstead, the now internationally acclaimed All England Jumping Course. Hickstead and horses are the diverting fascinations of John’s other siblings.
JB has undoubtedly inherited his father’s business acumen and bravery, innovatory flair and no-nonsense attitude. “Dad taught me the value of money from an early age. If we wanted pocket money we had to work.“
But, JB had his own ideas and entrepreneurial drive. “It was difficult to work under Dad, in
From 1993 to 2005, over £36m was re- invested in onsite improvements, not least the company’s flagship swimming and well-being complex, The Oasis. During his time at the helm, turnover has increased five-fold. Bunn has made things ship-shape and steered the company back into the mainstream, Now, ’the ship’ is literally facing its biggest ever battle against the sea.
It is currently completing a major £16.8m coastal protection scheme, the first of its type in the UK. This will defend the West Sands park from winter sea-storm damage, but also provide a new beach. Ultimately, the scheme will adjoin a major Environment Agency wetland nature reserve development.
Bunn Leisure has funded the scheme itself. “We have always borrowed sensibly.“ (The company has banked with Lloyds since 1959). “It wasn’t a brave investment, it was essential. We had no choice. The EA drew a line across our parks, which would have meant we lost 70% of West Sands park.“
One suspects JB will enjoy his personal pride when the scheme is completed for the 2013 holiday season, while recognising that family responsibilities have been upheld by securing the business for future family generations – of Bunns, Selsey workers and holidaymakers.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – NOVEMBER 2012
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44