IN the wake of a number of closures of long-standing Dorset family businesses, an insolvency expert has advised families to seek objective external perspectives to ensure their long-term survival.

Elaine Wilkins, director at Antony Batty & Company in Bournemouth, said despite family-run businesses being the lifeblood of Dorset and Hampshire’s local economies, when they face financial difficulty, the challenges go far beyond the balance sheet, with impacts on relationships, succession plans, and even personal assets.

“Family-run businesses often begin with a vision passed down through generations,” she said.

“But familiarity can sometimes mean missed opportunities to adapt, and that is where risk and relationships can collide.

“We are seeing more family companies facing insolvency not because the business model is broken, but because they have been unable to navigate financial distress.”

Why the region’s family businesses matter

Small and micro businesses dominate both counties, with a high proportion being family-run, particularly in agriculture, construction, tourism, and retail.

The south west region has one of the highest concentrations of family-run agricultural and tourism enterprises in the UK.

In Dorset, self-employment rates are around 20%, well above the national average, highlighting a strong tradition of owner-managed firms, many of which are family businesses.

But, as Elaine warned, tradition alone is not protection from financial difficulties.

She said: “We have seen too many businesses trip up because they did not adjust in time to the challenges they were facing. My message to family business owners would be: legacy is powerful, but agility is vital.

“Family businesses tend to be more personal, which can make restructuring and turnaround emotionally harder but also more rewarding when it works.

“Too often, families delay seeking help or shy away from tough conversations. That can turn a temporary cash flow issue into a long-term crisis.”

Elaine recommends these key strategies for family-run firms looking to safeguard their future:

• Get external perspective: A trusted accountant or insolvency practitioner can provide the objectivity needed to tackle legacy problems.
• Formalise succession planning: A clear plan for leadership transition avoids last-minute decisions and family friction.
• Keep personal and business finances distinct: Blurring the two is a common red flag seen in insolvency cases.
• Act early: Do not wait until the business is in distress. Timely advice can turn things around or avoid the risk altogether.

She added: “When family firms enter distress, insolvency practitioners must work with more than balance sheets. The family dynamic is central.

“Blame, pride and relationships all affect communication and outcomes. Insolvency and restructuring advice must be both commercially sound and emotionally sensitive.

“Family businesses have so much going for them – loyalty, tradition and deep local roots. But it takes more than heart to survive in today’s climate. It takes forward planning and swift action too.”