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pandemic

non-blood-family-business

Family Business – blood non-blood

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

Unless your family business is a “mom & pop corner store” (which is more akin to owning a job than owning a business anyway), you will need to have a mix of ‘blood’ and ‘non-blood’ people working in it. As any business matures and grows, there becomes a need for professionalisation and systemisation. While owners may put a high value on the people in the business (especially family), the true value created in any business…

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wealth and happiness

Wealth and Happiness

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

Q: If the world’s two richest men cannot keep their wives happy, what hope do we have? A: No, that’s not a real question – it’s a meme that circulated following the news of the divorce of Bill & Melinda Gates. Many people with wealth realise that money can’t make a wife (or anyone) happy, but that doesn’t stop them trying. In business, sometimes we decide to “throwing money at a problem”. That means directing significant resources…

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Keys to Transition Family Business

Keys to Family Business Transition

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“How to transition the family business to the next generation?” The answer depends on (a) who is asking (incumbent or rising generation) and (b) when (in the life-cycle of the business) they are asking. More often than not, the question is raised too late – when the incumbent generation is thinking of retirement, when there are already unstated expectations from both generations, and when there is already latent conflict. The key ingredients to a successful…

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Owners and managers of a family business

Owners and Managers of a Family Business

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Family is (hopefully) for life. If the family business starts to interfere negatively with the relationships in the family, then there is imbalance. Family businesses are challenging because of the overlapping of family, business and ownership (known as the “three circle model”). Researchers from Harvard have extended this into four “rooms” by adding in the board room. Because family members wear multiple hats, are in multiple circles, or sit in multiple rooms, they need an…

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Sudden Wealth Syndrome

Sudden Wealth

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Sudden change of any type is risky. When someone’s personal wealth circumstances change quickly, it can lead to all sorts of adverse and unintended consequences. Here are some examples: * after being drafted, sportsperson gets a huge contract * winning the lottery – research shows most lose it * entrepreneur sells business for huge gain * ‘sudden’ inheritance Specialist wealth managers have emerged to support people through such transitions. Once the shock subsides, recipients sometimes…

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Family Business Conflict

Family Business Conflict

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You might think conflict in family business is predominately around business performance. Wrong. At the core, it’s most commonly about the ‘people’ side of things: ineffective communication, and not recognising the different needs, interests & capability of family members. Evolutionary psychology tells us that we behave more altruistically toward the relatives with whom we share the greatest genetic overlap, and more with our maternal than paternal relatives. This means as the family group grows deeper…

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Pruning the Tree - Exit Strategy

Pruning the Tree

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As a tree grows, it is often helpful to prune some branches to make space for other branches to grow. As families grow generationally, “pruning” – allowing some family branches to exit – can be beneficial both to the main family group and to the group that chooses to exit. As families grow, so does the diversity of family members. Managing the diverse needs and expectations becomes much harder. Unless the family business is always…

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wealth transition resilience

Wealth Transition Resilience

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#Intergenerational necessity, vulnerabilities, and resilience are typical factors addressed in determining wealth transition. However, adapting to the changing demands, expectations and opportunities in the disruption via #pandemic will epically force family businesses to rethink their strategies. The immediate need for #workfromhome, revised #familybusiness strategy, #riskassessment, and governance are paramount for pivoting to #nextgeneration and #futureofwork organizations. In the UK, the final report by the Intergenerational Commission speaks in terms of an intergenerational contract – “the principle that…

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Wealth Transfer Skiing

Your Kids Inheritance; SKIing

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Whether you choose to spend your kids inheritance, gift assets, or you prefer to hold money back for the kids, managing what you leave behind can be done a few different ways. There is no right way, and there should be no pressure to choose one direction or another. Your life, your money! Mass media will always jump on stories that seek to challenge and debunk commonly accepted narratives. CNBC is running a story suggesting…

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Privilege and Diseases of Family Wealth

Privilege and Other Diseases of the Wealthy

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Consider This: How do you explain your family wealth to young children? At what do you start this process? How do you say ‘no’ to them and place limits on their spending when they reply “but we can afford it”? Affluenza and entitle-itis are some of the newest ‘diseases’ that afflict the wealthy, and of course there is always the ubiquitous ‘privilege’ that almost everyone is now obliged to check. In her book Uneasy Street:…

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