‘Do We Need a Family Office?'
Many successful business families ask me, “Do we need a family office?” This question usually arises when managing family wealth, relationships and responsibilities becomes too complex for informal approaches.
When a family asks this, they’re possibly asking:
- How do we manage our growing wealth and responsibilities as a family?
- How do we prepare for succession and ensure a smooth transition to the next generation?
- How do we keep the family united, engaged, and aligned as life changes?
- What’s the best way to organise ourselves so both our business and our family can thrive?
My answer: As your family grows in generations, assets, and voices, you may need new governance and operating structures, like a family office, to support both business success and family unity for generations. If you want your business to thrive and your family to flourish, you’ll eventually need to balance the legacy of the business with your family’s well-being and aspirations.
If you have ever wondered whether your family needs a family office or how to organise for long-term success, read the full article for practical steps and insights from my experience with families who want to thrive in both business and life.
Family First, Business Always: How Business Families Can Thrive for Generations
You can have a thriving business and a thriving family, but it won’t happen by accident. At a certain level of financial success and family size, you need a structured governance and operations framework to align and oversee both business and family strategy.
The Real Question Behind “Do We Need a Family Office?”
When business families ask about setting up a family office, they are rarely just seeking a new structure. They’re looking for a way to manage complexity, prepare for succession and keep the family together as life changes. The real question is, “how do we organise ourselves so both our business and our family can thrive?”
Case Study: From Unity to Governance
A family with a thriving operating business and a substantial property portfolio had strong unity but they had no formal governance, no family office, and no clear plan for managing shared or personal wealth outside the business.
Their challenges:
• Should they separate property assets or keep them together?
• How to plan succession for ownership and assets?
• Is it time to set up a family office or governance framework?
Outcome achieved
As they faced decisions about whether to separate property assets or keep them together, and how to plan succession, they realised running a business and stewarding family wealth requires different skills and mindsets.
With guidance, they created a family charter, set up regular meetings, and developed a succession plan. The result was a renewed sense of unity and purpose, where both the business and the family could thrive.
“We realised our business gave us wealth, but our family harmony was what mattered most. Getting organised outside the business helped us see that both are worth protecting.”
This family’s experience highlights unity and purpose don’t happen by accident. They are the result of conscious choices and structured planning.
Investing In The Business of Family
As families grow in both wealth and complexity, informal approaches often reach their limits. This is when the question arises: how do we ensure both our business and our family can thrive together?
The answer lies in intentionally investing in the “business of family,” creating structures that support unity and long-term success.
In my experience, the most successful families invest as much in the “business of family” as they do in the family business. This means:
- Building governance frameworks, like family charters and regular meetings, to guide decisions and resolve conflicts.
- Planning for succession, not just in the business, but in family leadership and shared assets.
- Educating and empowering the next generation to become stewards, not just beneficiaries.
- Aligning investments and wealth management with the family’s values and long-term vision.
Case Study: The Founder’s Dilemma
A founder deeply tied to the business wanted future generations to be healthy, happy, and united, even if they didn’t share the same passion for the legacy business.
Their challenges:
- Founders often feel a sense of loss or uncertainty when shifting focus from the business to broader family matters.
- The rising generation had different interests. Some wanted to continue in the business, others were drawn to philanthropy or new ventures.
- There was tension around decisions about shared assets.
Outcome achieved
By holding regular meetings to discuss priorities and values, and by creating a family charter and succession plan reflecting both the founder’s legacy and the rising generation’s aspirations, the family established a family office to manage passive assets and support new initiatives.
"I respect what my parents built, and I’m proud of our family’s legacy. But my vision of success is broader, it’s about making a positive impact, supporting each other and having the freedom to explore new ventures. For me, being part of a thriving family matters just as much as the business itself."
The founder’s experience highlights the importance of adapting to changing priorities across generations, balancing tradition with innovation.
A Unified Roadmap for Family and Business Success
Success in both business and family life is the result of conscious choices, clear structures, and ongoing commitment. You need to be intentional, invest time and energy in both and create structures that support your family’s unique vision of success
Practical Steps for Lasting Success
Whether you’re just beginning to formalise your approach or refining established practices, the following key actions offer a practical and strategic road map.
1. Clarify What Success Means for Your Family
Define your vision. Whether it’s growing the business, preserving wealth, supporting lifestyles, or leaving a legacy. Achieving clarity and consensus is the foundation for all future decisions.
2. Create Clear Governance
Establish governance structures for both the business and family wealth. Create a family charter or constitution, set up regular meetings to discuss family and business matters and formalise decision-making roles. Strong governance builds trust, transparency, and unity.
3. Professionalise Wealth and Asset Management
Treat passive assets with the same rigor as your business. Engage trusted advisers, consider forming a family office, and develop investment policies aligned with your family’s goals and risk appetite.
4. Prepare for Succession and Transition
Plan for the transfer of ownership and leadership in both business and family wealth. Educate and involve the next generation early to ensure continuity and stewardship.
5. Foster Open Communication
Schedule regular family meetings and encourage honest conversations about values, priorities, and legacy. Open dialogue helps resolve tensions and align interests.
6. Educate and Empower the Next Generation
Provide mentoring, leadership opportunities, and financial education. Empower future stewards to take active roles in both business and family governance.
7. Align Business Strategies and Family Priorities
Recognise both the business and the family require dedicated attention and planning. Success in one does not guarantee success in the other. Ensure that business decisions support family unity and long-term aspirations. Revisit plans regularly as the family and business evolve.
Tip: Start small. An informal family dinner or a facilitated workshop can be a great way to begin. The most important step is to get everyone talking and listening, so you can build a shared vision for the future.
Organising Family Wealth Beyond The Business
As families grow and evolve, new challenges emerge, especially around managing wealth beyond the core business. One of the main reason families set up a family office is to organise and steward passive assets to support long-term goals and family lifestyles.
Many business families are confident running their business but uncertain about managing passive assets. The business is often the active asset, the source of identity, purpose, and control. Passive assets can feel less important or complex. Yet, every business family will eventually consider diversifying wealth for reasons such as preserving capital, funding family distributions and shared expenses, supporting family lifestyles (especially for those who retire from the business), entrepreneurial ventures and philanthropy.
My advice is to start by acknowledging the difference between running a business and stewarding family wealth. The skills, mindset, and structures required are not the same but both are essential for long-term success.
"Building this business was my life’s work. It gave our family opportunities I never dreamed of. But as I look ahead, I realise my greatest hope is that my children are healthy, happy, and united, whether they choose to run the business or pursue their own paths.
Final Thought
“Do we need a family office?” is shorthand for a deeper set of concerns about stewardship, legacy and the future. It opens the door to a conversation about governance, values, and the kind of family you want to be - not just the kind of business you want to run.
Reflect on how your family currently balances business and family priorities. Consider whether your existing structures support both unity and business growth and identify areas where more intentional planning could help.
By taking intentional steps, families can build a foundation for unity, resilience, and shared purpose, ensuring both business and family flourish for generations to come.
By Victorian based Family Business Accredited Advisor
Jason Chequer
Managing Partner
