I built a family business from scratch to $200 million. Now I’ve become its bottleneck

In 2003, my father, my sister and I established Kormotech, a Ukrainian family-run firm specializing in cat and dog food; I assumed the role of CEO in 2008. Through 23 years of growth, the company amassed a revenue of $210 million and secured a spot among the world's top 50 pet food manufacturers. In 2021, we aimed to expand globally, but I soon discovered that my previous management approach was now hindering our progress.

I had become the bottleneck in our own business. As Russia launched its invasion in March 2022, we sought independent directors for the supervisory board. Despite the challenging timing, we had only two options: globalize or cease to exist. The board took office in early 2024, granting the independent directors majority voting rights – five out of nine.

This enabled them to block my decisions. Reflecting on this experience, I learned three crucial lessons. First, the owner must evolve alongside the company. When we began, we operated like a startup with five members, discussing strategies over lunch at our factory. We acted swiftly, even on risky decisions, setting us apart from multinational corporations.

Today, Kormotech employs 1,500 people across five countries. While my quick decision-making once gave me an edge, I now recognize the need to rein in my unilateral actions. Second, sharing power and hearing "no" is essential. Recently, we struggled to acquire a Ukrainian company due to board opposition. While initially disheartened, I realized the importance of board members' input and the right to halt certain decisions.

Lastly, stepping back from day-to-day management is vital for a family business's long-term success. My children, while excited about the future, have no interest in assuming day-to-day leadership. To ensure Kormotech's growth without being tied to my management style, I plan to transition into a hired CEO role while the board oversees day-to-day operations. Ultimately, this transition will demonstrate my successful leadership.