In 2020, I was approached by 4 successful entrepreneurs who aspired to be founders of family wealth.
Their offer: advise them full-time in building generational wealth.
The work is fascinating. The results are exciting.
I call it "The Lab".
Here's what we're learning👇
Their offer: advise them full-time in building generational wealth.
The work is fascinating. The results are exciting.
I call it "The Lab".
Here's what we're learning👇
I spent a decade advising wealthy families in a family office setting.
I've studied the world's greatest families using their privately published histories as a guide.
I know the end goal well.
So it's been a blast doing some reverse engineering.
I've studied the world's greatest families using their privately published histories as a guide.
I know the end goal well.
So it's been a blast doing some reverse engineering.
The Lab's mandate: push the limits on what can be done in a founder's lifetime to ensure long-term success.
We've focused on 5 Keys that we think will scale to other aspiring 1st generation founders.
They're most applicable to entrepreneurs but will benefit every family.
We've focused on 5 Keys that we think will scale to other aspiring 1st generation founders.
They're most applicable to entrepreneurs but will benefit every family.
1. Prioritize The Family Enterprise
Goal: go from family business to business-owning family
In The Lab, we're:
•maximizing discretionary cash flow to fund promising projects
•recording new intellectual capital for future use
•involving spouses & children in everyday settings
Goal: go from family business to business-owning family
In The Lab, we're:
•maximizing discretionary cash flow to fund promising projects
•recording new intellectual capital for future use
•involving spouses & children in everyday settings
We want business to serve the family. Not the other way around.
By maximizing the family's total benefit from the business, the founders' work & family lives are better aligned.
Spouses see the present/future benefit of all the effort & the founders feel freed up to work.
By maximizing the family's total benefit from the business, the founders' work & family lives are better aligned.
Spouses see the present/future benefit of all the effort & the founders feel freed up to work.
2. Strive For Family Magnetism
Goal: an inclusive family that members want to belong to
In The Lab, we're:
•instituting weekly space for family rest & fun
•maximizing bonds between grandparents & grandchildren
•constantly seeking best possible family communication
Goal: an inclusive family that members want to belong to
In The Lab, we're:
•instituting weekly space for family rest & fun
•maximizing bonds between grandparents & grandchildren
•constantly seeking best possible family communication
Today there's tons of alternatives to family: friends, college, sports, & work - they all compete for affection.
Simply put: we're recruiting members to choose family first over all other options.
We want to maximize the family's gravity to hold their children's orbit.
Simply put: we're recruiting members to choose family first over all other options.
We want to maximize the family's gravity to hold their children's orbit.
3. Curate A Family Culture
Goal: shared values, identity, & narrative
In The Lab, we're:
•encouraging production over consumption
•emphasizing 3 virtues chosen by each family
•recording & telling family history to children
•building family "brand": crest, motto, traditions
Goal: shared values, identity, & narrative
In The Lab, we're:
•encouraging production over consumption
•emphasizing 3 virtues chosen by each family
•recording & telling family history to children
•building family "brand": crest, motto, traditions
Most families fail because they lack their own culture. We are obsessing over it.
To survive, a family needs a sense of "different-ness" making it unique from every other family.
Family history is big. Emphasize the good as a model, the bad as a lesson. Embellish but don't lie!
To survive, a family needs a sense of "different-ness" making it unique from every other family.
Family history is big. Emphasize the good as a model, the bad as a lesson. Embellish but don't lie!
4. Build Wealth Structures
Goal: permanent infrastructure for the family's future
In The Lab, we're:
•building long-term estate plans using family trusts
•setting up the Family Banks
•exploring Family Constitutions
•laying groundwork for future Family Office
Goal: permanent infrastructure for the family's future
In The Lab, we're:
•building long-term estate plans using family trusts
•setting up the Family Banks
•exploring Family Constitutions
•laying groundwork for future Family Office
Trusts, the Family Council, Family Bank, Family Constitution, Family Office...when done right they are a strong foundation for your family's future.
Right now we're mostly researching.
This takes up most of my time and for good reason: they'll hopefully be around for centuries!
Right now we're mostly researching.
This takes up most of my time and for good reason: they'll hopefully be around for centuries!
5. Form Family Alliances
Goal: play long-term games with long-term people
In The Lab, we're:
•expecting the world to continue to decentralize
•researching family alliances in history
•translating the concept of family alliances to modern life
Goal: play long-term games with long-term people
In The Lab, we're:
•expecting the world to continue to decentralize
•researching family alliances in history
•translating the concept of family alliances to modern life
We think the "Sovereign Individual" thesis of global decentralization will continue with one exception:
Instead of individuals, we'll have "Sovereign Families".
As nation-states strain under the burden of control, alliances of like-minded families will become more powerful.
Instead of individuals, we'll have "Sovereign Families".
As nation-states strain under the burden of control, alliances of like-minded families will become more powerful.
5 Keys From "The Lab" For Family Founders:
1. Prioritize The Family Enterprise
2. Strive For Family Magnetism
3. Curate A Family Culture
4. Build Wealth Structures
5. Form Family Alliances
Share your thoughts/questions below!
If there's interest, I'll expand in long-form soon.
1. Prioritize The Family Enterprise
2. Strive For Family Magnetism
3. Curate A Family Culture
4. Build Wealth Structures
5. Form Family Alliances
Share your thoughts/questions below!
If there's interest, I'll expand in long-form soon.
If you enjoyed this, you might enjoy the Family Wealth Compass newsletter.
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Practical. Actionable. No fluff.
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Every Monday, I share one deep-dive insight into building generational family wealth.
Practical. Actionable. No fluff.
Join below👇 500yearfamily.com
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