Family Business Wealth Management
Most well run companies have a commitment to provide a stable, predictable place of employment. However, they must also have a primary focus on profits. The success of your family business provides wealth for your family. If your family business does not prosper, neither will your family (at least not as a result of your business).
When it comes to the financial health of your family business, wealth management must be a top priority. The ultimate goal for your family business is to build a strong and successful business and also build a cash reserve that can sustain your family for generations to come. With wealth comes the need to responsibly manage and protect it.
“The successor who is focused on “living well,” and forgets about minding the store or feeding the goose that lays the “golden eggs,” will ultimately dine on roast goose.”
The Little Red Book of Family Business: Page 98
The Right Approach to Wealth Management
Every family wants to build and protect its wealth. However, Family Business Wealth Management can be a complex undertaking. There are many issues involved in effective wealth management strategies. These include preparing for eventual business succession, estate planning, and various investment strategies. Every family business requires a unique approach to wealth management. This often requires the assistance of a consultant who has extensive experience with developing Family Business Wealth
What is Your Family Business Wealth Management Plan?
Most family businesses have a similar goal in mind: To preserve and build wealth that will sustain future generations of family members. But despite a common goal, many family businesses run into challenges along the way. Barriers to financial success can be attributed to any number of obstacles. For this reason, it is extremely important to manage wealth in the appropriate manner.
Factors to Consider in Devising Wealth Management Strategies include:
- Investment Choices
- Tax Planning
- Succession Planning
- Managing Risk
- Establishing Family Trusts
Being Smart With Money
Wealth generated through a family business carries responsibilities that future generations must maintain. The eventual successors of your business must understand their obligation to guard and grow the family wealth for future generations. This means that business successors must be taught how to handle the burden of this responsibility. If your family is wealthy, those in charge must effectively manage the money, or they must understand how to manage the people who manage the family’s money!
Does Your Family Business Need Help?
Family Business Matters has extensive experience assisting family businesses in the development of Family Business Wealth Management strategies. With many decades of experience, we understand the wide variety of challenges that families face as they work together to build, grow and sustain a thriving family business generation after generation. Through conferences, continuing education programs, family business retreats, speaking engagements and private family business consulting services, Family Business Matters has assisted more than 450 family-owned businesses around the world chart their way through family business issues of all shapes and sizes.
For more information on how Family Business Matters can help your family business survive and thrive, please contact us today at (970) 948-5077.