The objective of being able to deliver family office services is clear. The logic of delivering family office services is very persuasive. In order to build a highly profitable book of business with the affluent, the ability to provide family office services can be strategically as well as financially rewarding.
To begin with, the family office business model is attractive to the affluent. It provides a competitive business development advantage to professionals who move in this direction and can effectively communicate this to the wealthy.
Additionally, family office services can enhance the relationship professionals have with their clients. Value-added services like concierge healthcare and project management can go a long way toward strengthening the bond between professionals and wealthy clients. Furthermore, many of these services, such as advanced planning and financing, can generate substantial revenues.
With the extensive movement by many professionals into family office services, some will get it right and others will likely crash and burn. The decision to provide such services needs to be carefully thought through with solid attention paid to the strategic and financial implications.