EntreLeadership - Grow My Business and Lose My Brother?

Episode Date: October 5, 2026

Staying quiet to keep the peace only gives resentment room to grow.  In this episode, head coach John Felkins takes a call from a business owner who’s ready to grow beyond his brother and busi...ness partner. John explains how to address the real problem, get clear on what needs to change, and move forward without unnecessarily destroying the family relationship.   Next Steps: • 🎯 Not sure what to do next in your business? Let’s figure it out together. Book a free 30-minute consult call with the EntreLeadership® Team. • 📞 Have a question for the show? Call 844-944-1070 or send us a message. • 📚 Order Dave’s most recent EntreLeadership book, Build a Business You Love. • 📧 Get EntreLeadership’s free weekly newsletter: expert advice and practical tips from the same playbook we used to build Ramsey Solutions into a $300 million company. • 🌎 Attend our world-class leadership conference, EntreLeadership Summit. • 📝 Stop guessing. Get a plan built for your business and someone who holds you to it. Find out which coaching option is right for you. • 📈 Bad hires. Strategies that never get off the ground. 60-hour workweeks. Sleepless nights. EntreLeadership Master Series is where you trade all that for the exact systems our Executive Team used to scale Ramsey Solutions to $300 million. Don’t wait until seats are sold out.   Connect With Our Sponsors: • Go to BELAY Solutions or text ENTRE to 55123 for their free resource! • See if Christian Healthcare Ministries Groups are the right fit for your organization. • Visit NetSuite today to learn more.   Listen to More From Ramsey Network: 🎙️ The Ramsey Show 💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 🍸 Smart Money Happy Hour 💰 George Kamel   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript
Discussion (0)
Starting point is 00:00:09 Today we've got a call from Sam in Columbus, Ohio. He went into business with his older brother when he was just 16. They've been 50-50, but now he's the one doing the majority of the work, and he's wondering, do I just live with attention or do I buy out my brother and break up the family business? Sam in Columbus, thanks for calling. How can we help, man? Hey, John, I appreciate you taking my call. Thanks for calling.
Starting point is 00:00:35 Of course, yeah. So I run a video production company that I started in high school with my older brother. And we do about 300K a year in revenue. Awesome. We have about 12 employees that work with us. But, you know, kind of like as you get older, right, I started when I was 16. I kind of have started to notice that my partner and my older brother kind of isn't as into it as I am. So I wanted to ask about bringing up a buyout with kind of keeping the family emotions out of it, if that makes sense.
Starting point is 00:01:03 Aren't older brothers the worst? Yeah, they can be sometimes. Yeah, I'm the middle too. So I get the short end of the stick on both ends is what they say, supposedly, right? I'm a younger brother too, so I feel your pain. How have you tried to bring this up previously? Yeah, well, I just, I have, and it doesn't really go anywhere, he gets pretty quiet. Now, I will say I haven't really, like, put the foot down and been like, this is what's happening or somebody's walking, you know what I mean?
Starting point is 00:01:31 I think the biggest thing obviously is that it started in the beginning with him kind of funding a lot of it and I was the one that was making the videos and doing the content and it is genuinely my passion. I just think now we've kind of grown to the point revenue-wise where it's pretty comfortable for him. Not saying he's not working, he's a great employee, just he doesn't really quite think like an entrepreneur. So I think it's a little bit awkward now where it's like he's pretty comfortable. It's definitely not his passion and what he loves. I mean, anyone can see that.
Starting point is 00:02:01 It's just trying to break him out of that shell and kind of bring up that option, if that makes sense. Yeah, how is it structured now? How's the ownership structured? Yeah, so it's 50-50. We started when I was 16, so I don't, if I legally understand it, I don't even know if I could have formed the LLC without an adult. Basically, our operations day-to-day, I handle production and sales, pretty much all of it.
Starting point is 00:02:25 He does a lot of the administration back-in. He does a little bit of employee training, especially on our business. sports media content. But yeah, we're 50-50 right down the middle, and there's not really an operating agreement on buy-out options or anything like that. So there's nothing written down? No, there's not, unfortunately. Yeah, I learned a lot since I was 16.
Starting point is 00:02:43 Yeah, yeah, that's something that you do need to. Whatever we come up with or whatever you do next, make sure that it's written down. Yes, sir. How do you do comp right now? Are you both paid equally? Do you just take owners? Yeah, which I will be honest with you. When I put the question a couple months back, that was really the main issue with me.
Starting point is 00:03:06 I feel like I do all of our sales, which I feel like obviously everything in the business is important. But yes, we do split our comp right down the middle of our profit. Yes. So we get paid the same amount every year. So I get that you're saying it's not really his passion and he's doing office work while you're out there doing the sales. actually producing this stuff, but what is the observable problem? Like, if I just came to your business and watched, what would I see that would be problematic? Well, if I'm being honest with you, I think it's just that blurred family line dynamic.
Starting point is 00:03:45 And I think the biggest thing with me is, like, the way we talk to each other is not how we would talk to our employees, right? And we're both wrong in that. Like, I'm definitely wrong. He's definitely wrong. Nobody's right in that situation. And the other thing as well, I think with me personally, since you're talking to me, it's the fact that I, as I've gotten older, I'm really struggling with the fact that we are 50-50,
Starting point is 00:04:06 if that makes sense. I don't like the fact that somebody that's not into it as much as me has 50% of what I've built, if that makes sense. But you add that family dynamic and even more, we say things to each other because we know that we can say those things, right? That probably shouldn't be being said if that makes sense. Does that happen in front of team members? No, it does not. Nope. No, it does happen in private, which still, like I said, is not a good thing, but...
Starting point is 00:04:33 No, it's not a good thing, but it's different that, you know, you're not setting that example necessarily for the team. Although, I will say, if there's discord between the two of you, whether it's being spoken in front of the team or not, they probably can feel it. Would you guess that that's the case? 100%, yes. Yeah. So that's something to rectify between the two of you for sure. And then you have the deal itself. And that's kind of two different things. So let's go back to when you have this conversation, he just goes quiet. Correct. Does he not push back or you just get no response from him? I think it's a little bit of both. Like it gets awkward and then we kind of just move on. And yes,
Starting point is 00:05:16 he does not really say anything. But like I said, I'm, I'm yet to absolutely put the hammer down and say we're not leaving this conversation until you say something. So I think that's what's kind of giving me cold feet a little bit is when I do bring something like that up, it is very unresponsive, correct? And like I said, I don't want to assume anything, but I do think it has a lot to do with just the comfortability of the revenue. Well, that may be the case, but the fact of the matter is, is you're 50-50 owners. So you really have no, you have no leverage in terms of how the deal is structured, right? Well, the only leverage I do have is I walk.
Starting point is 00:05:52 I mean, I have all the client relationships. I have all of that. That is the ultimate leverage game. But like I said, it is my older brother, and I would really hate to bring it to that. You know what I mean? I guess that's probably what's scaring me is that. Well, yeah, that pretty much shoots a hole in Thanksgiving dinner. Correct.
Starting point is 00:06:10 Right? Because, you know, that's going to be tough to recover from. We'll get right back to our episode. But first, your team is worth every dollar you invest in them. And behind payroll, healthcare is one of the biggest expenses that business That's why I want to tell you about Christian Healthcare Ministries Groups program. It's a faith-based alternative to traditional health insurance, where members help pay each other's medical bills. It's a great option, not only for individuals, but also for small businesses,
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Starting point is 00:07:22 slash entree or call 1-800 join CHM. Now, let's get back to the episode. So what's a win for you? Like, what are your options? You walk and destroy Thanksgiving dinner and cause a bunch of family strife, or you just swallow this endlessly and get resentful. What other option do you have?
Starting point is 00:07:46 Well, yeah, I'm definitely, I'm walking the line on number two right there, and that's where I do not want to go. I mean, the option is, like, to where we're at right now, I mean, we're a young business, right? We're both young. So I just, where we're at is the revenue and everything, like the business isn't worth anything if him and I are not working in it, right? So my best case scenario is we split the equipment down the middle. I give him a buyout offer and I just see what happens from there.
Starting point is 00:08:12 But I'm very, very passionate about this. And I am willing to do number one if it comes to it. This is my life. This is what I want to do. And, yeah, but yes, in my brain right now, it's to put a number in that's not offensive, be honest with each other about what he wants to do with his life and move on. And hopefully we both find our happiness and what we want to do, if that makes sense. It's more than just the money, too.
Starting point is 00:08:41 Sure. And I suspect, based on what you're saying, you want to grow this business. You want it to be a lot bigger than 300K a year, correct? Correct. And you said you have 12 employees? Yep, yep. One of them's full-time, and then the other tenor contractors that work with us. Our busy seasons fall, we shoot a lot of sports media, high school football, stuff like that.
Starting point is 00:09:03 Okay. So, yep. Okay, so how much of the year do they work? Just a few months out of the year? Yeah, like 14 weeks. Yep. Okay. You know, it's tough when you don't have anything written down.
Starting point is 00:09:17 but I and it's a you're in a tough spot so I want to be careful to not sound like I've got some kind of magic wand that's just going to make this easy right it's it's probably going to be sticky but the option that you have is is to go to him and say look I'm I'm not okay with us continuing the way we are and I love you you're my brother I don't want to tear our relationship apart in this thing but something has got to give and I'm not willing to just go on the way we are. And I want to grow this thing beyond what it is today. And like you said, put your foot down or, you know, not come off this point until you come to resolution. Here's what I would say in terms of how you process the conversation itself. There's a great book called Crucial Conversations. And in that, something that is spelled out is the fool's choice. And the fool's choice is, on one hand, we absolutely just go in guns blazing and let them have it. You know, I'm sick and tired of this and I'm, you know, on and on and on. And then the other side of the fool's choice is to just keep our mouth shut and become bitter
Starting point is 00:10:34 and not say anything. People that are effective in these situations find the third way. Gotcha. They find the third way. And that's what you're looking for. And that's what you need, is to be able to sit down with him and say, bro, this is not something that we're going to sweep under the rug anymore because we're tripping over it, because we've swept it under the rug long enough. And I want to take this thing to the moon. I want to double it, triple it, quadruple it.
Starting point is 00:11:09 But it doesn't make sense the way we're set up now, where the comp is the way it is and the ownership is the way it is. And we have got to talk about this. Now, I will say that when you're talking to somebody between generations, which I know this is a little bit different than your situation,
Starting point is 00:11:30 but hang with me. Okay. One of the best things you can do to de-escalate the emotions in the conversation is put it way out into the future and say, hey, 10 years from now,
Starting point is 00:11:43 I don't want X, Y, and Z to be the case. Do you? Because when you put it that far out, five years, ten years out in front, it tends to de-escalate the emotions and just let everybody think about it a little more clearly. And there is power in doing that. And I would say to him, I'm not willing to go on indefinitely. I'm not willing to look up 10 years from today and be in the same situation that we're in. it's not equitable to both of us. Yeah. And I'm not willing to come off of this,
Starting point is 00:12:21 but I do want to work with you and come up to an agreement together so that we don't ruin Thanksgiving dinner and Christmas and every other, our relationship. Yeah. And like you said, just not be, you know, not walk away from it. Now, I guess I always want to plan for the worst.
Starting point is 00:12:47 Now, if it's kind of, like I said, if he's just so ingrained into the comfortability of everything, like, do, does it come to a point where I guess this is more of a family question and less of a business question where number one is ever okay? You know what I mean? Like, at the end of the day, it is just business, right? And I, going into business, but family is shaky for reasons like this. Is there ever a time in this situation where number one would be like the right choice after, let's say after the conversation and he's still not budging?
Starting point is 00:13:16 Well, I want to address the concept of family business being shaky. What shaky is not having something written down and clearly defined when you went into it. That's what shaky. Yeah, I guess it's correct. Correct. Going into business with your brother can be fantastic. But here we are, right? Here we are.
Starting point is 00:13:35 We can't unwind that. And yes, yes, because you are young. And that's why I'm saying put it out into the future. Do you want to be, you know, an old guy like me, be 56 years old and have spent the last 30 years resenting your brother? No. No. No. I've seen enough of that.
Starting point is 00:13:56 I don't need to do it myself. Right. Right. And I don't know if you told me this or not, so I apologize if I forgot. Are you married? Do you have a family? No, I do not. I have a girlfriend of six years, but no kids or anything.
Starting point is 00:14:09 Okay. Well, that's a different phone call. But, uh, uh, uh, uh, uh, a visit. Eventually, eventually, either your girlfriend or your wife is going to have an opinion about this, too. So it's going to affect your whole family. So you don't want to wake up 30 years from now having resented your brother all these years. And you know what? I think it's okay to tell him that.
Starting point is 00:14:32 It's actually loving him well to say, bro, it just doesn't seem right to me. I'm not willing to let it go on this way indefinitely. and I don't want to wake up 30 years from today and have resented the last 30 years of working with you because we got off on a shaky start. Let's get this thing right and take it to the moon. That's loving your brother. Yeah, I like it.
Starting point is 00:14:57 I like it. I think a lot of it, honestly, just the reflection of all of it is time for me to just man up and tell my older brother what I think. Like, I think that is kind of what it comes down to, right? basically then from there, right? Like I don't want to be insulting. So I guess the final step in this process is how do I come to a number?
Starting point is 00:15:16 You know what I mean? Like I don't even, obviously there's people I can talk to about that. But the business is very relied on our work and our labor. You know what I mean? There's not a whole lot there if we're gone. So. Yeah, you have to get clear on that. And there's a way to do it.
Starting point is 00:15:31 You know, you can come up with the number. He can continue to make X amount. and that not mean that you make the same amount. Like, if you're doing the sales, you know, of course, around here, Dave likes to say that he would put the front desk receptionist on straight commission if he could. So I totally understand where you're coming from in the perspective of you're out there getting your face, you know, smashed in every day in a sales roll, and you should earn a commission on it. And your income should grow as you bring.
Starting point is 00:16:07 the work in. And if he's doing the admin work, that's not nothing. And so he should get paid for that. But fair and equal aren't the same thing. And that's the piece that you have to get clear on. But when I think about family business, the thing that I would double down on with everybody is family business can be great. It can be rich. It can be rewarding. It can be fun. but you have to be ultra, ultra intentional. I mean, I'm sitting in a family business right now. And all of the kind of things that you're talking about and all of the kind of things that go into a family business, like what is the split?
Starting point is 00:16:51 What is the pay? How is this thing going to get transitioned? Should be all airtight when you go into it or gotten airtight as fast as you possibly can and communicated, not only to the other family members, but to the extent that people can understand it. You don't have to get into dollars and cents, but your team should understand it too. So they have the clarity. That's a lot of security. That's a lot of clearheadedness for your team to actually understand, okay, this is how this thing works. So family business can be fantastic, but it is like an added degree of difficulty to be in a family.
Starting point is 00:17:32 family business because not only do you have to run the business well and grow it, you have to do it in a way that works well for your family. And it won't work any better in business. Your family business will be no more successful than your actual family is. So you've got to work on that stuff too. So hey, if you enjoyed today's conversation, be sure to like, share, and subscribe for more business and leadership content. And if you need help navigating a business challenge, I want you to talk to one of our coaches. They're here to help. We'll leave a link in the description for you to set up a free 30-minute call. I'm your host, John Falcons, and this is Entree Leadership.

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