The Evolution of Family Office Services
Originally pioneered by the Rockefellers, the family office concept was designed to serve ultra-high-net-worth families ($50-100M+) by bringing all key professionals under one roof. Today, this model has evolved into several variations that make it accessible to a broader range of practices and clients.
Modern Family Office Structures
- Traditional Single Family Office
- Multi-Family Office
- Virtual Family Office
- Multidisciplinary Firm
- Team-Based Model
The Problem with Traditional Service Models
Consider this common scenario: A successful real estate investor with $18M in net worth receives fragmented advice from multiple professionals:
- CPA focuses solely on tax implications
- Financial advisor pushes for market investment
- Insurance agent emphasizes death benefits
- Attorney addresses legal concerns in isolation
This creates a disconnected experience where:
- The client must coordinate all communication
- Professionals work in silos
- Advice often conflicts
- No holistic strategy emerges
The Family Office Solution
Core Components
- Central Point of Contact
- Coordinated Professional Services
- Integrated Planning
- Comprehensive Strategy Development
Building Your Team
Essential relationships include:
- CPA (often the cornerstone relationship)
- Estate Planning Attorney
- Business Attorney
- Private Banker
- Insurance Specialist
- Investment Advisor
Additional Specialist Network
Develop relationships with:
- Advanced Tax Planning Specialists
- Succession Planning Experts
- Cost Segregation Specialists
- R&D Tax Credit Experts
- Payroll Services
- Real Estate Professionals
Implementation Strategy
1. Position Yourself as Team Lead
- Coordinate professional services
- Maintain client relationships
- Oversee strategy development
- Ensure integrated execution
2. Build Strategic Relationships
- Start with core CPA relationship
- Add essential professional services
- Develop specialist network
- Maintain quality control
3. Transform Client Experience
Instead of saying "Here's a referral," communicate: "My team and I will analyze your situation and bring in the appropriate specialists to address your needs comprehensively."
4. Create Value Through Integration
- Coordinate professional advice
- Eliminate conflicting strategies
- Ensure comprehensive planning
- Deliver cohesive solutions
The Business Case
This approach offers several advantages:
- Differentiation in a commoditized market
- Higher client retention
- Enhanced revenue opportunities
- Deeper client relationships
- Protection from fee compression
Making It Work at Any Scale
You don't need dozens of in-house professionals to implement this model. Success comes from:
- Clear service model
- Strong professional relationships
- Effective coordination
- Quality control
- Consistent communication
The family office approach isn't just for ultra-wealthy clients anymore. By adapting these principles, any practice can deliver premium, comprehensive service while building stronger, more profitable client relationships.
