Every business is faced with challenges, but a family business faces some unique battles. If these challenges are not addressed, they could drastically affect the success of the business.
One of the most common themes I see in family business is Founderitis. The typical theme of the 2nd generation is that they are unhappy with how they are treated by their father/owner. Some typical complaints include:
A good example would be a 45 year old who runs his father's contracting company for the past 15 years. His dad is 67 years old and still comes to the office every day “to make sure things are running properly.”
Fifteen years ago the company was small and doing $4 million in sales. Today, under the son's leadership, it averages $25 million in volume per year. The son is fed up and tired of the situation. His dad still owns 100% of the company and only pays his son $4,000 per month plus the use of a company pickup truck. The son works 75 hours per week, is not trusted to sign checks, and can't make any decisions or major purchases without dad's approval. The son wants to quit and start his own company, or fire his dad.
If your business is struggling with Founderitis and you would like some strategies to deal with Founderitis, please contact me.
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