We have advised perhaps a thousand business owners over the last few decades and we see it time and time again. In spite of huge efforts, the business underperforms and fails to meet the owner’s expectations. In every way.

The symptoms of owner underperformance are commonly:

• The owner is working huge hours in the business. He or she is late home at nights, still takes work home and then pops out on the weekends to do more work. Working hard, not smart.
• The owner is involved in every decision. Their quest for control and their passion for the best outcome sees them micro manage their business. The business revolves around the owner.
• They can’t delegate. No matter how they try, the people below don’t seem to get it right. They have tried many senior managers but none of them can do the job properly and ultimately don’t last. Employees are getting frustrated and demotivated.
• Management structure is drawn on a chart with many levels of responsibility and accountability. In reality, it is a flatter structure where the owner still manages every level.
• Growth and performance was once good but hit a plateau a while back and no matter how much time is invested, it is not possible to overcome the wall of annoying issues with the business, service and customers that now forms a barrier to further growth.
• The owner is getting burnt out. He or she has not taken a proper holiday for a very long time. The kids are growing up having never known one (or both) of their parents.

These are typical characteristics of self-made business owners. Many have grown up in the school of hard knocks and have had to do everything the hard way. They know they have to change but it is hard to let go and old habits are now easily adopted.

These are symptoms of ‘owner-dependence’ in a business. Owner dependence is a major barrier to business performance, business value, future growth, successful exits and ultimately, owner well being.