The Family Office

The term "family office" may refer to a number of different methods for organizing and managing a family's resources that are no longer tied up in the core business - the family's operational business activities - in addition to providing services to family members. During the early years of the family business, it is common for the founder to rely on someone he or she trusts - for example, the company accountant - to deal with personal issues as well. As new generations join the business and it begins to grow, the services provided to the family, and how they are carried out, must be better organized. This is a key moment in the life of a family that is in business together; it provides the opportunity to develop a strategy for the family office that adheres to sound business principles in order to establish an efficient hub for financial services, accounting, tax consulting and training for the entire family. However, the family office may also end up taking care of miscellaneous management tasks and family red tape, with the serious risk of it turning into a landing pad for those family members who don't have specific career plans. If this happens, the services provided are unlikely to be competitive and the organization will become obsolete in the medium term.