When sibling rivalry kills once promising business enterprises

Together in business as a teamwork unity and employment or employee concept or industry workers metaphor for joining a partnership as diverse people connected together with 3D illustration elements. [Courtesy] There are family-run businesses spanning generations that seem to have defied the odds and stood the test of time. It seems the founder's vision was taken to the next level each time a new pair of hands took over running the business, growing or expanding it to the conglomerate or the market behemoth it is. But not all family businesses follow a similar script. When the founder dies or is incapacitated, it doesn't take long for fractures to begin emerging within a short time. What was an envied and dominant market leader crumbles and slowly dies. Examples are replete locally of such businesses, like in the retail and long-distance transport sectors. That said, what is it like to have siblings running the same business? Siblings rivalry Asian-operated businesses have a higher rate of success where siblings work harmoniously than, say, African-dominated ones. A quick look at their businesses shows many Asians instil sound business ethics in their children from a young age; no wonder we see parents and their children working under the same roof or manning different branches of the same business. The African mindset is making its own profit or having a controlling share in such family enterprises, more than growing the business to the next level, no wonder the fast collapse. And granted, where the lesser of the siblings is more qualified in matters of business over the older ones, the probability of the latter taking directives from the lesser one looks impossible. It seems even the pecking order plays out in business, just like in a family setting. Think of siblings ganging against one of them to orchestrate that ouster, and the likely litigation cases to follow that will more eat into the business than growing it. It is not a surprise that the country had been treated to such cases amongst siblings from a once-thriving retail outlet. Calling shots Apart from sibling rivalry, the one with the controlling stake believes they are the ones with a say in everything that matters in the business. No matter how sound proposals from one with minimal stakes sound, they're overlooked. This is because the one who calls the shots will take it as an attempt to undermine their authority. This can be frustrating, given that the former cannot increase their net worth like bringing more investors into the fold in an environment where ideas are strangulated, nor can they sell their stakes to an outsider and exit on amicable terms. No wonder siblings' infighting will see the business disintegrate slowly. The ego of one For any decision to be implemented, there's a need for a sit-down for all stakeholders to agree, but in some instances, where such decisions may meet a voice or two of objections, there are siblings whose egos cannot be pricked. This could be the senior most of all, the likely fatherly figure to the rest. His role in hierarchical ranking is similar to director of the company. His lesser siblings have more of a market grasp, and trying to counteract decisions made out of the blue could see raised voices. One person's ego doesn't allow for sober reasoning. It's either his or her way or the highway. It becomes toxic working with your sibling, and this toxicity is observed even in family gatherings where they may not stand the sight of each other. It makes for an interesting observation if a sibling has fired another from work, and how they relate in that family gathering. But, as they say, grief is what can see siblings projecting a united face, but behind that dark cloak is simmering anger, where they can drag each other through the corridors of justice in a long, prolonged business fight. This is such that by the time the case is being concluded, the business fortunes have long dwindled as litigation fees eat into its bottom margins. However, it pays to observe that the collapse of the siblings' controlled business is not all about infighting, but also other factors like poor management play a role. For example, suppliers may not be paid on time and withdraw their services. Financial institutions would be knocking for that credit facility, and auctioneers would be waiting if the business had no means of attracting cash injections from elsewhere to keep operations going.

When sibling rivalry kills once promising business enterprises

Get Full Access for Ksh299/Week.

Stand With Bold Journalism.
Stand With The Standard.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

DIGGER JOBS

Digger Motors

Digger Real Estate

When sibling rivalry kills once promising business enterprises

Get Full Access for Ksh299/Week.

Stand With Bold Journalism. Stand With The Standard.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Stand With Bold Journalism.
Stand With The Standard.