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Asking why is not a joke. Defining purpose is a much more involved process than simply getting to ... More the other side.
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ForbesBuilding A Family Office? 9 Startup Principles To Guide Your Francois Botha
Every great startup begins with a compelling idea and a clear understanding of the problem it aims to solve. Without this focus, even well-funded ventures drift into obscurity. The same holds true for family offices. While startups obsess over product-market fit, many individuals who have experienced liquidity events—or families establishing wealth management structures—neglect to define their why. The result is fractured priorities, generational discord, and missed opportunities.
A family office's mission serves as its north star. It outlines activities and services, dictates investment philosophy, shapes legacy, and determines whether the structure fosters unity or tension. Much like a startup's founding thesis guides its first hire, product roadmap, and fundraising strategy, a family's articulated purpose must anchor every decision—from asset allocation and bill-pay to lifestyle services and philanthropy.
Why Purpose Matters More Than Capital
1. Aligning Stakeholders
Startups with muddled visions crumble under competing founder agendas. Family offices face a parallel challenge: differing priorities. Discussions often highlight generational divides, where a patriarch focused on capital preservation may clash with next-generation members advocating for impact investing. However, the more common scenarios involve varying financial and service needs among family members. Without alignment, the office risks becoming a battleground rather than an engine for legacy.
2. Guiding Decision-Making
A startup's mission helps it reject distractions—there is tremendous power in knowing what not to pursue. For families, purpose answers critical questions: How should investment decisions be made? Should certain asset classes be prioritized? How should philanthropic requests be handled? What level of risk is acceptable? Clarity prevents reactive shifts, such as chasing speculative trends or overcorrecting after market downturns.
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