Structuring a Family Office

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Structuring a family office requires many decisions in order to find the optimal solution.

Consider these points in structuring your family business:

Who does the family business serve?

This typically includes the family and their offspring.

What services should the family office provide?

There’s a cost to the business for providing services.

For those the family office serves, what specific services are performed?

It’s best to provide a core set of services that can be done cost effectively.

Are you using in-house or outsourced services?

The choice of internal or external support has a significant impact on the cost of running the business.

This is particularly important with financial investment work.

How much do you charge the family member for services rendered?

If everything is free then the cost can go through the roof.

Should the services generate a profit for the family business or just cover the costs?

There’s always overhead and uncovered expenses in a business that need to be paid for.

What oversight of expenses should be put in place?

There’s often the need for a controller function in the family business.

What legal structure should be used?

Most family offices use an LLC with S-Corp designation but there are benefits to C-Corp and other structures.

Consider these questions in structuring your family business.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

In this episode of Investor Connect, host Hall T. Martin sits down with Doug Willmore, Chief Executive Officer, and Cathy Key, President and Chief Business Development Officer of WorldTree. Join the conversation to explore the fascinating journey of a company that started small and now manages 300 tree farms across multiple countries. With a focus on nature-based solutions, WorldTree offers a unique perspective on scaling a green business.

Cathy shares her intriguing shift from anthropology to tech, leading her to redefine WorldTree's business model. Doug provides an update on their current fundraising efforts, shedding light on the progress they've made and the ambitious goals ahead. Their conversation touches on the challenges and strategies involved in raising capital in the eco-friendly sector.

The episode teases insights into the financial workings of WorldTree, including their revenue streams and valuation approach. Hall and Doug discuss attracting the right investors and balancing financial returns with impactful environmental benefits. The dialogue offers a peek into the strategic thinking behind successful fundraising campaigns.

Hall outlines the innovative approaches Ten Capital employs to connect with potential investors, blending online and in-person events. With hints at the unique tactics and experiences shared, this episode promises to be a treasure trove of valuable insights for anyone looking to navigate the complex world of startup funding.

About WorldTree
WorldTree is dedicated to nature-based solutions for some of our biggest global challenges, focusing on people, planet, and prosperity. They develop carbon forestry projects to protect native forests, produce renewable timber, and sequester carbon. By funneling private capital into the regeneration of undervalued farmland through Empress-based forestry, WorldTree is paving the way for sustainable solutions. Visit the company here: https://worldtree.eco/

________________________
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https:/_/tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/
For Feedback please contact info@tencapital.group
Please follow, share, and leave a review.
Music courtesy of Bensound.

Goals of a Family Office

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Family offices can pursue several goals.

Here’s a list of key goals to consider for your family office and their implications in setting up the business.

Investments -- the complexity of the investments determines the number and type of advisors to engage.

The simpler the investments the less support required.

Financial goals -- these include not only individual goals but also goals for the family office.

Pursuing ESG investments brings an additional layer of complexity to the process.

Households -- The family office also includes the houses and other personal property.

The number and geographic dispersion of the houses determines the complexity of managing the properties.

Legal entities -- The more legal entities the family has, the more work to be done in managing them.

This includes managing the entity, tax filings, and ongoing support.

Advisors -- This includes accounting, financial, legal, and other professionals who provide services to support the family office.

The greater the number of advisors, the greater the cost to the business.

The goals of the business determine the complexity of the family office structure.

In setting up a family office, consider these goals for your business.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Do You Need a Family Office

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Before setting up a family office, first consider if you need one.

Here are some key considerations to review:

Do you have the income to support a family office?

Aside from a high net worth on paper you’ll also need to fund the operations which require cash flow.

Consider the ongoing cash flow required to support a team.

There are virtual family offices which can provide the accounting and finance support without the cost of hiring full-time salaried professionals.

Avoid setting up a family office that requires outsized returns to succeed as this won’t be sustainable.

Do you have a complex set of assets and investments?

If so, you may need a family office structure to manage it.

If not, you can find a lower-cost solution through a financial advisor.

Do you have successors who can carry on the family office?

Without successors it can be difficult to maintain a family business over the long haul.

Is your estate in a high tax bracket?

A family office can reduce taxes through active management.

Consider these points to see if you need to set up a family office.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Keys Steps in Setting Up a Family Office

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In launching a family office there are several decisions to make.

Here are key steps in setting up a family office:

Choose a family office structure.

There are three types of family offices, single, multi, and virtual.

The single-family office serves one family while the multi-family office serves several families.

The single-family office provides exclusive services while the multi-family office shares resources thus reducing costs.

There is also the virtual office structure which provides the accounting, financial and other resources primarily online.

This reduces the costs even further.

To set up your family office first run a feasibility study to determine the cost based on your vision of that family office.

Next, define your program which includes what you will invest in and how you will manage those investments.

Next, build out the program with staff and procedures.

After that setup succession plans, tax reporting, and other functions to support the business.

Finally, launch the family office and measure the results.

It’s often the case that the program and procedures will need to be modified.

Consider these steps in building your family office.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Before Setting Up a Family Office

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A family office manages the wealth of a family.

Before starting a family office consider these points:

What is the asset level of the family office?

The fee is based on the assets under management.

The higher the asset level, the higher the fee.

What services does the family office provide?

The more services the higher the cost.

How much client service do you need?

The greater the client service required, the higher the cost.

Are you ready to start a business?

A family office is a business unto itself which requires attention from you now and your successors later.

What type of investing do you want to pursue?

Each investment category brings a set of risk factors and requires research and management.

Do you want to create a sustainable business?

This requires creating a succession plan and recruiting people who can carry on the business.

Before setting up a family office consider these points to determine if you should and how you should do so.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

What Is a Family Office?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A family office is an entity setup to manage the wealth and business activities of a family to promote its values and identity.

Here are some key activities found in many family offices:

Develops and implements the investment strategy of the family business.

This includes financial investments in the stock market, real estate, and other assets.

Identifies and implements tax strategies for the family business.

This could be research into investments with tax advantages.

Performs estate planning.

This includes identifying trusts and other entity structures to preserve the estate.

Implements the philanthropic mission of the family.

This includes identifying non-profits and initiatives that provide a community service and donating resources to that cause.

Develops and implements succession planning.

This provides a plan to pass the estate from one generation to the next.

Manages the physical assets of the family.

This includes overseeing the care of the property of the family including the house and possessions.

A family office structure helps manage the investment and operations of a family.

Consider setting up a family office to oversee these activities in your family.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

In this episode of Investor Connect, Hall T. Martin discusses the essentials of raising funding with a guest who has transitioned from consulting to entrepreneurship. Hall underscores the importance of planning the investor's exit strategy from the beginning, which can involve sales, revenue sharing, or customer prepayments. This approach helps structure an effective funding strategy and attract potential investors.

Hall introduces the idea of anchor clients as a way to fund initial development. By securing contracts with clients willing to pay a premium for custom solutions, startups can build and refine their products while generating early revenue. This method ensures the product meets market needs through real-time feedback.

Consulting work related to the startup's core business is highlighted as a valuable bootstrapping strategy. This not only generates necessary income but also provides insights into the industry and builds a network of potential clients and partners. The guest finds this advice particularly useful for generating revenue and understanding market demands.

The episode concludes with advice on managing equity and partnerships, especially when personal challenges arise. Hall shares strategies for negotiating buyouts and revenue-sharing agreements to ensure business continuity. His insights offer a practical roadmap for navigating the complex landscape of funding, emphasizing adaptability and strategic planning. This episode provides essential tips for entrepreneurs seeking to secure capital and position their startups for success.

________________________
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https:/_/tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/
For Feedback please contact info@tencapital.group
Please follow, share, and leave a review.
Music courtesy of Bensound.