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Family Wealth Destruction Has Little to Do with Business

The Business of Family
Family Wealth Destruction Has Little to Do with Business
By Mike Boyd • Issue #21 • View online
What I’ve found interesting and counterintuitive in my research of generational families is that non-contributing family members actually play an important role in the success of a family business and the preservation of family wealth.
Family wealth is destroyed by a break down in communication and relationships, not poor business decisions.
Family members outside of the family business or main financial engine of the enterprise still require a clear understanding of their role as a fiduciary, director, shareholder and family member.
Non-contributors (for lack of a better phrase) who are still shareholders, need to take responsibility for knowing how to read financial statements, allocate capital and steward wealth.
Introducing family governance structures acts as guard rails around family wealth, facilitating robust discussions and ensuring all family members are aligned around a united vision - irrespective of the specific role they play in its pursuit.
Generational wealth isn’t that hard to keep, if you do the work…

Mike Boyd
That’s why exploring the intersection of Business, Family & Wealth is so interesting (to me).

Like anything, the super successful multi-generational families often do things a bit different, a bit weird, a bit edgy.

Because convention doesn’t produce exceptional outcomes.
Recommended Book:
Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business that Lasts - George A Isaac
This Week's Podcast Episode:
This is a gripping story of family politics, loss of control and staging a comeback.
This is a gripping story of family politics, loss of control and staging a comeback.
If you would like to leave a review for the podcast, this link will prompt you to open iTunes directly where you can leave a comment. Thank you!
Interesting links:
The Challenges Of The Newly Rich: Facing Judgment And Finding Their Way
Inside Joe Ricketts' Inbox: The Ricketts Family Constitution
Climate concerns reaching ‘tipping point’ for family offices | Financial Times
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. Join me as I learn how some of the world's most interesting families share values, knowledge, resources, and wealth with the next generation.

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