Why the First Generation Kills Family Businesses (Not the Third)

Two-thirds of US businesses are family-owned. Most won't survive to the third generation. But what if we've been blaming the wrong people? In this eye-opening episode, Amy Bruske sits down with family business expert Sara B. Stern to challenge everything you think you know about why family businesses fail. Spoiler alert: it's not the entitled grandkids who kill the company—it's the founders themselves. Amy and Sara dive deep into the messy realities of mixing blood with business, sharing war stories from the trenches (including Amy's legendary "pizza fight" with Kathy Kolbe that changed everything). You'll discover why hiring your brother might be the riskiest move you'll ever make, how a simple three-circle diagram can save your family relationships, and why most succession plans are doomed from day one. Whether you're running a family business, thinking about joining one, or just want to understand why your friend complains about working with their dad, this conversation will change how you think about family enterprises forever. Host: Amy Bruske President at Kolbe Corp (Kolbe: 3583) Guest-at-a-Glance 💡 Name: Sara B. Stern (Kolbe: 5691) 💡 What she does: Helps family businesses figure out where they're going, how they'll get there, and how to stay healthy while doing it | Expert EOS Implementer® at EOS Worldwide 💡 Company: EOS Worldwide 💡 Book: Start Here: A Guide for Family Business Succession 💡 Website: sarabstern.com Jaw-Dropping Moments The construction company that lost $30+ million because one family member was "too scary to discipline" Kathy Kolbe's two-week exit announcement that nobody saw coming Why Sara tried to cheat on her own Kolbe assessment (and got caught) The breakfast conversation that saved a 50-year family legacy Key Quotes Sara: "People like to talk about how the family business is killed by the third generation... I think it's the first. If the first generation creates a business that is not being run thoughtfully, it's like having a sports team where half the people have injuries." Sara: "I've talked to way too many second, third, fourth generation family business owners who, when I ask them, 'Why do you own the business?' their answer is 'because.' And that answer does not get you through the hard days. It maybe didn't even really get you through the good days." Amy: "If you can't trust me to order pizza, you cannot trust me to run your business." ***Find the freedom to be yourself by taking the Kolbe A™ Index or Kolbe Y™ Index for the youth in your life. Many successful companies work directly with a Kolbe Certified™ Consultant — find one in your area.