5 Trends That Will Affect Your Family Office Until 2030
Whether you’re a new family office preparing to pass the reigns to the next generation or you’ve already had many years of succession, the fact remains the same - to stay afloat, you need to adapt. This is perhaps more true now than ever before, as our world changes at a rapid pace and the way we do business shifts quickly as technology evolves. Family offices themselves are even on the rise, with a tenfold increase in the number in existence since 2008, bringing the current total to an estimated 10,000.
The next ten years will hold more changes to the way we work, so to help you stay ahead of the game and adapt before it’s too late, we’ve put together 5 trends that you should be aware of.
1) Increase in the need for cybersecurity
A recent study from Campden Wealth and Shillings documents that over a quarter of all family offices have experienced a cyber attack and, unless they change the way they work, that figure is only expected to rise. However, there is a way to decrease these chances: family offices must update cybersecurity policies and look at investment in the relevant information technology software and systems.
2) Millenials making changes
As millennials come of business age and begin to have a more prominent role in your family office, be prepared to experience a wealth of new changes. The way millenials think and work is wholly different to the previous generations. For example, the global financial crisis of 2008 has made them far more wary of long-term investments and more eager to look at those with short-term payoffs.
3) A need for more next-generation engagement
The succession of a family business can often be tricky, with only an estimated 20% of businesses surviving the first passover. This is a shockingly small figure and one that’s only expected to decrease, especially for those family businesses that are already in their third or fourth generation. So, to combat the problem, it’s vital you increase next-generation engagement and ensure your business remains the focus of your family.
4) More Accountability, Transparency, and Sustainability
Over 70% of millennials are willing to spend more money on the same product from a brand that’s focused on sustainability. As a huge portion of the upcoming consumer market, this shows just how vital it is that you reshape your brand to have a heavy focus on ethics and morals. The new shopper wants to know the brands they invest in are doing something positive in the world, so to stay ahead you need to do just that.
5) Improved Integration of Information
As the digital side of business races ahead and traditional information and data storage are replaced, it’s vital your family office is able to keep up and stay organised. From a more digitally connected world where your family office needs to be able to work together from around the globe, to being able to give clients easy access to digital data, it’s essential you find a platform that works for you.
At Trusted Family, we can aid your office in keeping ahead of the latest trends and maintaining a thriving business with the help of our governance platform. From managing data security to helping you share information with individual family members, we’ve got everything you need to drive your family office into the future.
Get in touch with a member of our team today to learn more.