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Build Your Family Bank

As James E Hughes Jr. points out, a family’s wealth is not limited to its financial assets but includ
The Business of Family
Build Your Family Bank
By Mike Boyd • Issue #14 • View online
As James E Hughes Jr. points out, a family’s wealth is not limited to its financial assets but includes its arguably more important forms of wealth: its human and intellectual assets. That means a family’s total assets are far greater than its financial assets alone.
This week’s recommended book, Build Your Family Bank, builds on the seminal work of Hughes and offers practical and concrete steps to take to ensure your family’s successful generational transition.
“The Family Bank approach recognizes that the traditional method of succession and wealth-transition planning, which focuses on controlling financial assets and minimizing and deferring taxes, gets the order of the work backwards.
The Family Bank approach, in contrast, pays close attention to the human elements of the family, then explores governance strategies and considers legal structures that meet the family’s needs.”

Source: Build Your Family Bank (Griffiths-Hamilton, 2014)
Source: Build Your Family Bank (Griffiths-Hamilton, 2014)
“The Family Bank approach requires effective communication built on trust, effective preparation of the Family Bank members, and a shared vision of what the Family Bank wants to achieve in the future. Along with that shared family vision comes the recognition that each generation is encouraged to become their own wealth creators while simultaneously stewarding the inherited Family Bank.
In all of these areas, the Family Bank leaders have an essential role to play. A successful Family Bank depends on each member earning a voice on the Family Bank board and on the three Ps: a shared Purpose, an agreed-upon Process, and the creation of Policies before need.”
Recommended Book:
Why do 70 percent of wealth transition plans fail? This is the question that Emily Griffiths-Hamilton sets out to answer in Build Your Family Bank, a book that looks closely at the core causes of wealth erosion and failed transition plans and offers a set of strategies for building successful wealth transition plans that will benefit many generations.
www.amazon.com  •  Share
Why I love this book: it written by a Family Enterprise Advisor who herself is a third generation inheritor of family wealth. Emily’s professional training and unique first-hand experience have given her a deep understanding of the benefits of family wealth and family-business transition planning.
This Week's Podcast Episode:
Dave Whorton’s resume is almost unbelievable. From a brand name VC in Silicon Valley working at Kleiner Perkins to a stint in private equity with TPG and ultimately to founding Tugboat Institute - a different way of building profitable and Evergreen businesses that last the test of time.
The intention of Evergreen businesses is to adapt and grow profitably for 100 years, and more.
“Evergreen businesses are led by purpose-driven leaders with the grit & resourcefulness to build & scale private, profitable, enduring, & market-leading businesses that make a dent in the universe”
The 7 P’s that makes a company Evergreen:
  1. Purpose
  2. Perseverance
  3. People First
  4. Private
  5. Profit
  6. Paced Growth &
  7. Pragmatic Innovation
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Thank you for your support - every bit of encouragement is greatly appreciated.
Thank you for your support - every bit of encouragement is greatly appreciated.
If you would like to leave a review for the podcast, this unique link will prompt you to open iTunes directly where you can leave a comment. Thank you so much for your support!
Interesting links:
How to Build a Company That Will Last for 100 Years | Inc.com
How to Build a Company That Will Last for 100 Years | Inc.com
A growing number of entrepreneurs are ditching the steroid-like growth that comes with outside investment, and building their companies to last…and last…and last.
www.inc.com  •  Share
Wealth Transfers: How To Reverse The 70% Failure Rate
Wealth Transfers: How To Reverse The 70% Failure Rate
The high failure rate of intergenerational wealth transfers can be reversed by broad preparation and planning. The family’s mission, a strategy to accomplish it, and philanthropy as a teaching experience for heirs are earmarks on the path to success. Building trust and communication are key.
www.forbes.com  •  Share
Mike Boyd
This interview with Paolo has been popular. My personal takeaways were the stories about:

1. Pruning the family tree
2. The Family Archive &
3. Family Charter examples

As a visual learner, I found this sketch useful too. https://t.co/SiJkWPayZ1 https://t.co/JfyhbVJMR9
Stay in touch
Mike Boyd is the co-owner and CEO of the Vroom Group, Founder of Prosura insurance, Investor at Mudbrick Capital, Host of The Business of Family Podcast and an active member of YPO.
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Mike Boyd

I'm inspired by multi-generational businesses and the families who steward them.

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