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Family Office Priorities

Family Office Priorities

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Family offices (FOs) come in so many shapes and sizes that the term ceases to have specific meaning. It’s simply a set of services provided for a family. The origins of the FO often determine their primary focus: there are plenty of FOs that are simply vehicles for co-investment, or glorified reporting platforms. Having a FO essentially means taking a professional approach to managing the affairs of the family. It’s interesting that 92% of FO…

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Wealth Guilt & Shame

Wealth Guilt & Shame

By Articles, Blog, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Wealthy people are a soft target at the best of times. The media revels in sensational stories about wealthy families, especially when things go wrong. And if that wasn’t enough, neo-socialists in the US preach redistribution and question whether the world should have billionaires. The emerging “wealth minimisation” movement encourages inheritors to redistribute “excess wealth” for the betterment of society. In some cases, this is about making up for the “harm” done by the wealth…

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Transition - Hold or Fold

Transition; hold or fold?

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Kenny Rogers sang of the importance of knowing “when to hold ’em, and when to fold ’em”. Any succession plan worth its salt isn’t just a plan of who will succeed whom in running the business. It also needs a “Plan B” for the scenarios where the chosen successor is unwilling or unable, where there is no successor, or where a generational transition of the business might lead to serious conflict. Some business founders/owners enjoy…

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Pareto principle and the Family Business

Pareto Principle and the Family Business

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A “universal truth” about the imbalance of inputs and outputs is what became known as the Pareto principle, or the 80/20 rule. While it doesn’t always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases, Here we will address how not to sell a family business. 0% of all businesses do not sell, and only about 30% of family businesses get handed down to the next generation. If…

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Lets talk about the family business

Let’s Talk About This

By Articles, Familosophy, Featured Posts, LinkedIn, repost No Comments

One of the biggest challenges in wealthy families is when/how to talk about the family wealth to children. There are a number of factors to consider: 1. Being aware of other ways children will learn about it themselves, e.g. from the media, direct research, and from friends (it’s a bit like sex education). Would you rather your children find out about the family wealth from reports and rumours that are laden with assumptions? It’s better…

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Leadership vs Entitlement

Leadership vs Entitlement?

By Articles, Familosophy, Featured Posts, LinkedIn, repost No Comments

The e-word – “entitlement” – comes up in almost every presentation or lecture I give, and in many family discussions. It has become almost a dirty word when it comes to family wealth – something to be avoided at all cost. “How can I prevent my children from becoming entitled?” is what most every parent wants to know. When it comes to family business, limiting the negative impact of entitlement can be achieved by instilling…

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Purpose in Family Business

Purpose in Family Business

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Family business has positives and negatives – our aim should be leverage the positives and seek to mitigate the negatives. One important distinguishing feature of family businesses is that they can embody a sense of purpose. The original purpose of the business founder may have been wealth creation. However, as the business evolves and additional family members join, it’s an opportunity for the family as a group to discuss and articulate their collective values and…

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3 generation trope

The 3 Generation Trope

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

It’s a most quoted statistic – “just 13% of family businesses survive the third generation” – and it has finally been challenged. It comes from a single study of US manufacturing companies in the 1980s, and for some reason it has stuck and become almost axiomatic. But it is deeply flawed. Most importantly, it never compared family businesses to non-family businesses (family businesses on average do last longer), and it also never considered the reasons why those…

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family business social capital

Family business social capital

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A ‘family business’ is more than just a business owned and operated by a family. In addition to being a vehicle of wealth creation and entrepreneurship for the family, these businesses can bring other non-financial benefits – known as “socioemotional wealth” or “social capital” – to family members. Being part of the family enterprises brings feelings of pride, personal reward and satisfaction, and can constitute a part of family members’ identity. These additional intangibles are…

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Harmony Family vs Business

Harmony; Family vs Business

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Can you have the best of both worlds? Family businesses have to tread a fine line: they must compete like any business, while also maintaining harmony amongst the family – both those who are involved in the family business and those who are not. There are a few common themes that help families maintain this balance: 1. Trust is essential, and what builds trust are good communication and transparency. Anywhere information is not provided, people…

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