In the current economic environment, family businesses are facing challenges due to the ongoing Trade War. While the situation is serious, with potential difficulties projected into 2026, there are practical steps you can take to guide your business through these times.
The Seabrook Wessex Approach
We use a process designed to assist leaders of lower-mid-market family-owned businesses in managing the impacts of the Trade War and the threats to the sustainability of your company - and the well-being of your family and the families of your team members. Our approach starts with understanding your situation through direct communication. We then collect essential data and work with your stakeholders to evaluate your business's current health and pinpoint any critical issues.
We then partner with you to develop a strategy that aims to improve your business's direction and help prevent the end of your company’s existence.
Your Strategic Toolkit
Here are the core components often found in a tariff strategies and tactics toolkit:
1. Supply Chain Optimization:
- Look for new suppliers in stable regions to diversify.
- Work on better terms with current suppliers to reduce costs.
- Consider local or regional sourcing for a more stable supply chain.
- Manage inventory strategically to control expenses.
2. Financial & Tax Strategies:
- Review and renegotiate contracts to manage financial pressures.
- Enhance cash flow through detailed analysis and management.
- Explore available financing and support programs.
- Use tax incentives and consult experts for a customized tax strategy.
3. Operations & Pricing:
- Streamline operations to cut costs and increase efficiency.
- Reassess product designs for better cost management.
- Adjust pricing strategies to maintain profitability.
4. Market & Customer Focus:
- Expand into new markets to spread risk.
- Keep your customers informed about your business's value.
- Focus on retaining customers through strong relationships.
5. Family Governance & Communication:
- Coordinate family shareholders to align on strategy.
- Improve governance with the help of councils or boards.
A Call to Action
The seas in the next two years will likely be rough. Many family-owned lower-mid-market companies may not make it past the second quarter of 2026. By employing these strategies, you can fortify your family company against the effects of the Trade War, and give your family, your team members, and their families a fighting chance of not becoming collateral damage in the Trade War.
To learn about Seabrook Wessex Group's Tariff Strategies and Tactics practice -
Let's talk about laying out a strategy to take your company through the Trade War and give your family and the families of your team members a fighting chance -
My business can't run without me. Do you ever find yourself thinking or saying that? We know we have.
You have worked to build a business that you either started or took over from a previous generation. You have done a pretty good job, and there is a great deal of satisfaction in it - maybe even some pride in knowing that you are important to the well-being of your family. You like the feeling of value at being indispensable.
That's too bad.
If your business can't run without you, then you - and your family - are missing out. It can be hard to not to choose staying late at the office over a soccer game or recitals if there is a fire to put out or a looming deadline.
Vacations? If you are taking them, and your business can't run without you, your body is there, but your brain is not fully present. How often do you check with the office, fire up your laptop, or shoot a text while you are at the beach with your spouse and children?
And if your business can't run without you, what happens if you can't run it because you aren't coming into the office - ever? If your disability or death means you are no longer there to run it, then you - or your family - will realize you didn't own a business; you just had a job where your employer was you.
You can change that. We can help you.
The Battle of Goose Green - a lesson in why having a business that CAN run without you is imperative
In 1982, Argentina invaded the Falkland Islands - or the Islas Malvinas, as they are known in Buenos Aires, in an effort to reclaim them. They had been under British rule since 1833, but Argentina never renounced its claim. Even though the islands were 8,000 miles away from London, the Thatcher government refused to abandon the 3,400 British citizens who had previously made clear that they liked trading with Argentina, but did not want Buenos Aires to rule over them. So, a joint-service task force was quickly assembled and dispatched to the South Atlantic.
One of the significant engagements of the war was the effort to dislodge a 1,200-man Argentine garrison holding a hamlet called Goose Green. The garrison was under the command of professional officers, but the soldiers were mostly draftees who landed full of patriotic anticipation but little if any real experience. Tasked with retaking Goose Green was a force of paratroopers and Royal Marines. One of the units was 2nd Para, a 450-man contingent of professional, disciplined, and very well-trained paratroopers. 2nd Para was under the command of 42-year-old Lt. Col. Herbert "H" Jones, whose battlefield call-sign was Sunray.
On the 29th of May, 1982 the battle for Goose Green was raging. 2nd Para found itself pinned down. To create some momentum, Lt. Col. Jones led a charge against the nearest Argentine position - and was killed. As soon as the words "Sunray is down!" came over the unit's radios, leadership was assumed by Jones's second in command, Major Chris Keeble. Like Jones, Keeble was a graduate of Sandhurst - the Royal Military Academy. Keeble, who had not slept in over 40 hours, walked a short distance from the men now under his command and prayed for guidance. He then proposed a solution to his superiors, who, after expressing incredulity, gave him a green light.
Keeble met in a neutral space with the commanders of the Argentine garrison. He gave them two options - surrender honourably, or face the arrival of an overwhelming cadre of British reinforcements. The latter option was a bluff, but the weary Argentine officers, knowing their demoralized troops were even more fatigued, expressed gratitude that Major Keeble had arrived.
The Battle of Goose Green contains some lessons for the entrepreneur business-owner who wants his or her organization to grow and be sustainable -
- First, a great organization is not dependent upon the presence of a single, specific leader. The wheels did not fall off of 2nd Para when Colonel Jones was killed. Major Keeble had been identified in advance as the one who would succeed Jones.
- The Lesson: If your business cannot run without you, you don't have a sustainable business.
- Secondly, Major Keeble was not merely designated to take over if Lt. Col. Jones was killed. Far in advance of the Falklands War, Keeble had been trained and entrusted with authority that would prepare him for the task he faced at Goose Green.
- The Lesson: Merely having someone in mind to take charge means nothing if you have not trained them, given them responsibility, and empowered them, and communicated their standing to others, before the unthinkable happens.
- Thirdly, when Major Keeble suggested meeting with his Argentine counterparts to propose their surrender, his superiors radioed back what amounted to scoffing at the idea. It was a very risky strategy on several levels - What if the Argentines rejected the idea? What if they took Keeble himself as a hostage? What if the Argentines behaved treacherously and mounted an all-out attack instead? Keeble's bosses looked at all of this and more. In the end, as counterintuitive as proposing surrender to the enemy seemed, they trusted Keeble's instincts as an experienced command officer. They were rewarded with a result that ended the death and suffering from a battle that had bogged down.
- The Lesson: Trust the instincts of those you choose to lead, and give them the authority they need now, even if it means they make mistakes. They will develop confidence, and learn from the experience of their failures.
