Starting or creating a family office
What Milestones Should Guide the Creation of a Family Office?
Short answer. Use milestones to show the office is becoming ready to operate. First, the family agrees on its purpose and scope and chooses a service model. It also sets authority and a budget. Core leadership and providers are assigned. Controls and records are in place, and priority processes are documented. Review each milestone with the family before moving to the next.
Milestones should show that the family has made key decisions and built the capacity needed for the next stage. A calendar alone does not show whether the office is ready. In my experience, progress is clearer when each phase ends with a specific decision, document, or working process the family can review.
Agree on Purpose and Boundaries
Begin with a shared statement of why the office is being created, whom it will serve, and what work it will handle. Record the family's values and expectations along with its priorities, then set an initial scope that can be reviewed as needs change. This gives the project a reference point when new requests arise and helps avoid building services without a clear family mandate.
The family compass guide can help capture the family's aims. The broader 12-step family office hub provides a sequence for planning the operating model and governance. It also covers provider relationships and staffing, along with workflows.
Set Authority, Budget, and Operating Model
Before hiring or moving responsibilities, decide who can approve spending and investments. Set who can approve service changes, too. Agree on who supervises the senior executive and how disagreements are escalated. Establish an initial budget that accounts for staffing and outside expertise, plus administrative support. Include systems and other operating needs. Talk with the family's attorney or CPA when entity, employment, or tax questions need professional advice.
Next, select the initial service model. Identify which responsibilities need an internal owner and which can remain with outside specialists. Assign a lead for every major provider relationship and set expectations for reporting and follow-up. A cost calculator can help organize planning assumptions, while the single versus multi-family office break-even calculator can support a comparison of service models.
Prepare People, Controls, and Processes
A later milestone is naming the core leader and defining the role's authority. The job description should match the scope the family approved. Identify the advisers and specialists needed to support that person, and make sure the family knows who handles each area. For personnel planning, the staff compensation estimator can help structure assumptions.
Before operations begin, document financial controls and approval limits. Set policies for conflicts and continuity arrangements. Document procedures for recurring work. Create a reliable record of assets and liabilities, along with entities. Include accounts and contracts, plus key contacts. Build an operating binder that states who prepares reports, who reviews them, and what happens when an exception occurs. Milestones are met when the people responsible can follow these procedures and the family can see how oversight works.
Finish with a readiness review. Confirm that the purpose and scope remain agreed, authority is understood, the approved budget matches the plan, essential records are available, and priority workflows have owners. If a milestone is incomplete, resolve it before adding another service or staff role. This keeps the launch tied to the family's decisions and makes progress easier to assess.
Sources: How to Start a Family Office, The Single Family Office. Informational only, not financial, legal or tax advice.