Renewing the Family and the Family Business Excerpts from: Becoming a Wealth Transfer Specialist Learn More

If you are currently actively working in the family business market, you probably spend all or most of your energy serving the business owner. The typical business advisor treats the business owner as the only client and confines the fact-finding process to discovering what the owner needs and wants. The business owner, too, generally believes decisions affecting the business are his alone to make. I believe there is a better approach.

The Family as Client

In my work with family businesses, I treat the entire family as the client. From the outset, I obtain agreement from the business owner that every family member's expectations and goals related to the business are important. My objective is to create a plan for the preservation and transfer of the family's entire wealth, not just the business. In order to do that, I must create a plan that will reflect the needs, desires and expectations of the entire family. Contrast this approach with a business continuation plan developed in secret with input provided only by the owner.

To develop the information I need, I personally interview every family member and spouse. Frequently, everyone in the family does not have the same objectives for the business as the owner, and the only way to understand what the various objectives are, is to ask. I interview, in confidence, each family member in a "safe" setting where they can be comfortable sharing open, honest answers to the questions I pose. I ask about family relationships, communication problems affecting family members and probe expectations related to the future of the business and their perceived role in it. The information obtained helps me understand the objectives of the family regarding the transfer of the family's wealth.

Once the information is obtained, I work with other trusted advisors of the family to develop a new wealth transfer plan. I use computer software I have developed for this purpose. The software creates a report that describes the current wealth transfer plan and makes recommendation for changes. The report is written in layman's language so everyone in the family can easily understand it.

The Family Retreat

The new plan is then presented to the entire family at a family retreat. The retreat is conducted at a neutral site, such as a hotel or resort, where there will be no distractions. Every adult family member, including spouses, is invited to attend.

The retreat experience is always interesting. Many business owners I've worked with have told me that this was the first time they ever heard their children speak openly about the business and their expectations. Often, the children's comments trigger deep emotions in themselves and others. Sometimes conflicts arise. These are important to address because conflict and hidden agendas can jeopardize the success of the business and wealth transfer plan.

In many cases, the family retreat is the first time the family has ever openly discussed business and financial matters. I call my process "family and business renewal" because, while it helps preserve the business and other family wealth, it also enhances family relationships by opening the door to better inter-family communication.

Compensation

You may be wondering how I can afford to spend so much time and energy on each case. Well, the answer is simple. I charge a fee for my services. I believe the services that I bring to my clients add considerable value. My fee typically ranges from $10,000 to $40,000, depending upon the size and complexity of the case. I have received over $1.5 million in wealth transfer planning fees from my practice. I guarantee to refund the entire fee if the client family is not completely satisfied with my work. I find business owners are not reluctant to pay my fee once they understand the nature and scope of the work I plan to do for them.

You can experience similar success in the family business market by following these basic principles: treat the entire family as your client; focus on the family's entire wealth, not just the business; present the new wealth transfer plan in a retreat setting; charge a planning fee for your services.