Neil Wright is the Managing Director of TensCare, specialists in electrotherapy products for pain relief and muscle rehabilitation, who became employee-owned four years ago.
Since then, the company has grown, innovated and reaped the benefits of this alternative business structure. We caught up with Neil to learn more about the “transformative effect” employee ownership has had on his business.
How did you find out about employee ownership?
Employee ownership came onto my radar when I was looking at finance for buying the business and it was an option that resonated with us.
What are the benefits of employee ownership for your business?
As well as the financial benefits, one of the biggest rewards is the emotional reward for the staff who have helped build the business under private ownership, there is also ae entrepreneurial legacy from the previous private owners. Since becoming employee-owned, we’ve more than doubled our staff from 17 to 40. Employee ownership is great for staff retention and attracting new recruits.
Employee ownership has also encouraged innovation and idea generation because our team are more engaged. In fact, like many of our products, one of our bestselling facial beauty products was originally an idea from an employee.
What advice do you have for business owners looking at employee ownership?
Employee ownership should be a serious consideration for small businesses particularly I would say with 10 or more employees – it’s not just larger businesses who can take advantage of this structure. Not only is it financially attractive, but there are emotional rewards too. Selling your businesses to your staff after the hard toil of building up the business is a fantastic way of easing out of a business whilst still offering an opportunity to taper down being involved.
Talk to your employees and reach out to specialists for advice, like the Employee Ownership Association. As with any business transaction, you should always get professional advice during the transition period.