THE FOUNDER'S JOURNEY

Edson Gissoni and Rual Rousselet – Executive Partners of DMS PARTNERS

CHAPTER I – UNDERSTANDING THE CONCEPT AND THE MAJOR PHASES

The Founder's Journey is the path every entrepreneur takes from the stage in which...

The company concentrates all decisions until the moment it begins to share, transfer, or end its role in leading the business. Throughout this process, the time and quality of preparation make the difference between preserving the legacy or seeing years of work lost due to a few poorly managed decisions.

In Brazil, approximately 90% of companies are family-owned, but only 30% successfully reach the second generation, less than 15% reach the third, and less than 5% survive to the fourth. Studies show that the main cause of this high mortality rate is not the market itself, but the absence of governance, succession planning, and clear rules between partners and heirs. Research also indicates that approximately 72% of Brazilian family businesses do not have a defined succession plan for key positions, which transforms the leadership transition into a moment of improvisation and conflict, instead of a structured process. In other words, this means that a large proportion of founders are reacting to succession only after the problem has already arisen, rather than managing the journey with control and foresight.

The Founder's Journey proposal aims precisely to reverse this logic: to move away from improvisation and assume greater control over the timing, stages, and transition alternatives. Planning ahead allows the founder to test successors, define roles (family, management, board), simulate scenarios of partial or total liquidity, and design their own trajectory, whether as an advisor, capital partner, or completely detached from operations. When the Founder sees the journey as a strategic project, and not as a "later" issue, they reduce the risk of conflicts, increase the company's attractiveness to investors, and protect the assets built up over decades.

More than a legal or financial matter, the Founder's Journey is a movement of awareness: understanding that the founder's departure is inevitable, but how it happens can be planned, negotiated, and organized. By preparing with adequate time, the entrepreneur ceases to be a hostage to emergencies (illness, conflicts, market pressures) and begins to guide, with clarity, the succession, the creation of a board, and liquidity decisions, with a direct impact on the continuity of the company and the peace of mind of the family.

The four major phases of the Founder's Journey

Although each company has its own story, it's possible to see the Founder's Journey in four major phases, which help to organize decisions and priorities.

1. The "I'll solve everything" phase

This is the moment when the Founder is at the forefront of all relevant decisions:

Hires, fires, negotiates with clients and suppliers, talks to the bank, and monitors...

The cash register in detail. This phase is important for building culture and testing the model.

Business is about gaining speed, but if prolonged for too long it creates bottlenecks and overload.

Emotional dependence and over-reliance on the founder figure.

2. Phase of professionalizing management

Here the Founder begins to assemble a leadership team, structure indicators,

define management routines and implement basic governance processes (such as meetings).

(of results, budget, commercial and financial policies). It is also the time to

to separate what is the role of the family from what is the role of management, opening space for

Market executives without losing the company's identity.

3. Governance and decision-making forums phase

As the operation matures, the need arises to create formal decision-making forums:

advisory or management board, shareholder agreements, family protocols,

Rules for the entry, exit, and remuneration of family members. At this stage, the figure of

The founder is beginning to shift from day-to-day management to the role of strategist.

advisor or chairman, with time to think about the future of the business and their own

succession.

4. Succession and Liquidity Phase

It is when the topic of leaving (partial or total) ceases to be taboo and begins to be discussed openly.

in a structured way. The Founder can plan for the entry of a family successor, the

continuity with market executives, the sale of a stake to an investor.

or even the complete sale of the company. The central point is that this transition must be

prepared in advance, with clear criteria, transparent communication and

Alignment between partners and heirs.

FAQ – Founder's Journey

1. When should I start planning my succession?

Ideally, planning should begin while the company is still growing and the founder is active. This allows for testing successors, structuring governance, and adjusting processes over time. Waiting for a critical event (illness, conflict, or crisis) reduces options and increases the risk of hasty decisions.

2. Do I need to have a family successor?

Not necessarily. Succession can be carried out by market executives, provided there is strategic alignment and clear governance. The most important thing is competence and preparation, not family ties. Many companies fail by prioritizing family ties over technical ability.

3. What happens if I don't plan the Founder's Journey?

The absence of planning tends to generate corporate conflicts, loss of value, and operational instability. Succession occurs reactively, usually during times of crisis. This compromises business continuity and can destroy years of asset building.

4. What is the difference between governance and management?

Management is the day-to-day operational execution, while governance defines rules, structures, and strategic decisions. Governance organizes power, establishes controls, and creates decision-making forums, ensuring that the company operates sustainably and independently of individuals.

5. Can I stay with the company after the succession?

Yes, it's common for the founder to move into roles such as advisor, chairman, or investor partner. This allows them to contribute strategically without interfering in operations. A well-structured transition preserves the legacy and keeps the founder relevant, without compromising the autonomy of the new leadership.

This article will have a sequel with another chapter on the same topic where...

The key decisions involved in the process and the emotional dimension of were addressed.

involved in the Founder's Journey.