By definition, single family offices are services and organizations that deal with helping a wealthy family with their financial management, real estate decision, and provide advice on investment deals. The goal of these services is to help their clients grow and climb the ladder of success. These services are most commonly run by one family, and they employ a smaller number of workers when compared to large corporations. These organizations are only focused on one client, and they fully provide their services in order to help them with their short and long-term goals. In this article, we are going to help you make the right decision when choosing the best service for your needs, and we will give you some advice on how to choose what is going to benefit you the most. Keep on reading if you want to learn some tips and rules for working with single family offices in the UK.
1. Be aware of the services you would need
The first thing that you need to know about single family offices in the UK is that they offer a broad variety of services, and depending on the organization, they may focus just on one thing. Because of this, you need to be aware of the services that you would need, and how the right organization can help you out with them.
The most common things that the SFOs offer include planning for the trust funds and real estate, bookkeeping and reporting, providing aid in financial investments, administration services, along with helping you with the taxes and risk management.
Some organizations cover all of these things, while others will focus just on one specific set and they are experts in the field.
2. Consider if SFO or MFO is better
You should also be aware if you would be better working with a multi-family office or a single family one. You should be aware that there are differences between the two, and making the right decision is going to affect you both short term and in the long run.
The MFOs are usually larger, and they offer a more structured working environment, they have a way of multitasking and prioritizing, but that also means that sometimes there may be some delays in getting things done on time. These organizations interact like external service providers and they are not deeply connected to just one client.
On the other hand, SFOs have a more intimate way of handling the tasks and they focus on just one client at a time. It is a different type of collaboration since everything is run by a smaller group of people. They act as an inside consultant and they focus on all the important things at once.
3. Investments and financial focus
Investment is a big part of these organizations, and most of them either focus on financial services or they provide aid and advice in making the right decision. When choosing the right organization for your needs, you will need to see how the investments are currently made, and everything that they cover. Note that you should also consider if they make the final decision based only on the financial factors, or if they are going to include other factors like objectives, goals, and future planning.
On websites like Familyofficehub.io, you can see that you can easily choose the right type of investment focus single family office by the services they provide, and you can check a fully detailed list of all the offices in the UK and what they focus on.
4. Understand that the collaboration will be different
Before signing a contract with an SFO, especially if you’ve collaborated only with MFOs before, you need to understand that the future collaboration will be different and you should not expect the same approach that you’ve been used to.
Even if you have collaborated with an SFO before, the communication will be different, and you need to see if that is something that you would benefit from. Some of the organizations will require no assistance or supervision when it comes to finishing the tasks and the projects, while others will only provide help in your decision-making. Try to determine the ultimate objective that you have, and based on that, look for a service that offers the things that you will most likely require.
See if you would need a dedicated team to help you with your investment or capital, what type of control are you agreeing for the office to have, and how much would the employees be involved with you as a client.
5. There are different classes
As you already know, every family office is different from the next, so just because you’ve done your research on one, does not mean that you understand the concept of how every other business functions. You need to know that there are four main different classes of these businesses, and each and every one of them works in a different way.
The first class is said to be the most advanced one, and if you choose to collaborate with service, they will need little to no supervision. They will fully take care of your business and needs, and they can offer you competitive advice. The second class will assist in your decision-making and can help you with your management and real estate deals. They don’t require supervision, but they will just help with things instead of fully doing them for you. Class three mainly focuses on finances and will offer advice both inside and outside of the family offices. Finally, the fourth class mainly deals with real estate services and provides basic services and products, but will not directly involve with estate or liquid assets and will not help you with the management.
These are some of the things you need to be aware of before choosing to collaborate with an SFO and information that will help you pick the right one for your needs. Before choosing to hire one, you need to schedule a meeting so you can understand their focus better. The collaboration will defer depending on the organization that you’ve chosen, so you need to make the right choice from the start.