In our latest edition of Diary of a Private Office, Rebecca Bettany, Director, discusses the importance of entrepreneurs in helping to revive the global economy.
The world economy is more dependent than ever on entrepreneurs and it is a privilege to look after a number of brilliant entrepreneurs through JTC Private Office.
It takes a special character to be an entrepreneur. They often seem a little bit crazy in their enthusiasm to do things their own way and to never give up when odds seem stacked against them. The successful ones are very passionate about their businesses and will sometimes pay their businesses far more attention than they do their spouses or children.
Family offices looking after entrepreneurs need to be very strong. They will find themselves pushed to the extreme – both in terms of helping with the business, for example organising financing arrangements or legal agreements, but also in terms of personal support. The busy entrepreneur easily forgets to pay household bills or properly organise the family holiday, for example.
Entrepreneurs often need to be reminded to separate themselves from their businesses and they see their interests and welfare directly aligned, whereas in fact a business is of course its own legal entity. Careful accounting is imperative to ensure finances are kept clearly distinct.
For privately owned businesses growing very fast, the family office may need to provide extra support functions until the company has created its own. This could include an oversight function to ensure legal and regulatory standards are adhered to. Family offices may also find themselves helping with payroll and HR functions.
Regular overview of the entrepreneur’s residency and asset holding structure is also important, as in a fast changing situation, original set ups may no longer make sense.
A good private office will absorb all of these functions and stresses to free up an entrepreneur’s time and headspace to do what they do best and what the economy needs right now: growing businesses.