Founder problem

The business can’t run without me

If every decision, client and problem runs through you, growth adds strain. What research says about owner dependence, and case studies that show it.

What is usually going on

Early on, a founder who does everything is a strength. Later, every extra customer adds to one person’s day, an illness or holiday becomes a business risk, and the business cannot grow or be sold without them.

Read with the book

Chapter 7 (the Fragility Trap). The Founder’s Trap →

What the research says

In a national survey of Canadian family businesses, 65% of owner-managers said they made all the major decisions in at least three of five business areas. Dependence was lower in older and more valuable firms with more shareholders.Limits: Canadian family firms, self-reported, and two decades old.Feltham, T. S., Feltham, G. & Barnett, J. J. (2005). The Dependence of Family Businesses on a Single Decision-Maker. Journal of Small Business Management, 43(1), 1–15.Read the research →

More studies, with their limits, are on the Research & Evidence page.

Cases to read

Your next step

If this sounds like your business, a Snapshot Review (A$249, including the book) provides an independent view of how your business fits together, where pressure is concentrated, and what to test first. It is delivered within two business days of receiving your Intake Form.

Explore the Snapshot Review

General information and educational insight only; not financial, legal, tax, strategic or professional advice.

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