The development stages of family businesses produce different tensions which generate new paradoxes at each point in time. The business issues extend beyond operational problems into emotional spaces that connect with relationships. The stages of family business development provide essential knowledge that enables families to tackle upcoming difficulties while making sound business decisions which support both family and business success.
Stage 1: Founder Stage (Owner-Managed)
Who runs it? The founder, often alone or with a spouse.
Tension: Control vs. Delegation
Stage 2: Sibling Partnership
Who runs it? The founder’s children, often siblings.
Tension: Equality vs. Capability
Stage 3: Cousin Consortium
Who runs it? A group of cousins (next generation), more distant from the founder.
Tension: Unity vs. Diversity