Earning the Right to Lead
- Ross Paterson
- Jul 24
- 2 min read
Many successors have been watching the company evolve alongside themselves since they were young children. But if absorbing all that context made them ready to take over in adulthood and accept the heavy burdens of ownership, far fewer family businesses would be shutting down every year.
-McKinsey Institute for Economic Mobility
For most founders, the business IS their actual financial plan. And that reality puts massive pressure on the founder-successor relationship. If you truly want to take over, you have to prove you can carry the weight. You have to EARN THE RIGHT TO LEAD. Here is how you do it:
Put yourself on the line – The comfortable W-2 mindset is over. True ownership means securing loans, signing your name, and taking the brunt of financial liability. Ease the founder’s fears by replacing their capital with yours.
Put money in the bank – You should intimately understand how the business runs, exactly who it serves, and how the company earns money. If you wait for your founder to say, "You're ready," you never will be. Start practicing the reps of driving profitable growth right now.
Do the dirty work - Legacy leaders who watched you grow up need to see you doing the “real” work, whatever that means in your industry. When you are willing to get your hands dirty for the sake of your team, you prove your authority. That way, when the keys do get handed off, the veteran teammates won’t feel like the transition is undeserved.
Founders are rightfully proud of what they built, but the reality is that their systems are usually not what the business needs to reach the next level. When you step up and own the risk, you give the founder the ultimate freedom to finally let go.
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