You are thinking about setting up a Family Office but are wanting to know what are the decisions you will need to make. A good step is to start with your strategy or compass.

Launching a family office can be a complex and involved process, and requires careful planning and execution. In order to create a successful family office, it is important to have a clear strategy or compass that outlines the mission, values, and vision of the office, as well as the scope of services and activities that it will provide. A “Compass” will reduce family misunderstandings and potential friction. Here are some key elements you can use to consider when creating a family office blueprint:

Mission, Values, and Vision: These three elements are essential to defining the purpose and aspirations of the family office. The mission statement should articulate the overarching goal of the office, while the values statement should outline the guiding principles that will govern its operations. The vision statement should provide a long-term view of what the office hopes to achieve.

Scope of Services and Activities: The family office should clearly outline the services and activities it will provide to its members. This could include wealth management services, investment advice, estate planning, tax planning, philanthropic services, and more. It is also important to consider whether the office will provide staggered services for different family members, or whether it will provide all services to all family members. Additionally, a masterclass in investing and due diligence of the portfolio could be considered.

Financial Situation and Future Goals: A thorough analysis of the family's current financial situation is essential to creating a successful family office. This should include an assessment of assets and liabilities, as well as an evaluation of future goals and objectives. It is important to understand the family's financial needs and priorities in order to develop an effective long-term investment strategy.

Risk Tolerance and Investment Objectives: Determining acceptable risk levels and investment aims is crucial to creating a successful investment strategy. The family office should work with its members to identify their risk tolerance and investment objectives, and then develop a plan that aligns with these goals.

Long-Term Investment Strategy: Developing a comprehensive long-term investment strategy is essential to achieving the family's financial goals. This should include a plan for asset allocation and diversification, as well as an evaluation of potential investment opportunities.

Governance and Decision Making: Establishing the family office's organizational structure and decision-making processes is critical to ensuring that it operates effectively. This should include clear guidelines on who has decision-making authority, as well as how decisions are made. Additionally, it is important to establish clear accountabilities, such as attending meetings and participating in decision-making processes.

Key Stakeholders: Recognizing crucial family members, advisors, and service providers is important to the success of the family office. This should include identifying key stakeholders and developing strategies for engaging with them effectively.

Operational Capabilities: Assessing the family office's infrastructure and capacity is essential to ensuring that it can deliver the services and activities outlined in its scope. This should include an evaluation of staffing needs, as well as an assessment of the technology and systems required to support the office's operations.

Monitoring and Evaluation: Having an external expert to track progress towards goals. Remember to celebrate the wins!

In conclusion, launching a family office requires careful planning and execution. By following these key elements outlined above, you can create a successful family office that supports your family's financial goals and objectives. It is important to remember that the family office blueprint is a living document and should be regularly reviewed and updated to ensure that it remains relevant and effective over time