Segment: No Family in My Business - I Exclude Relatives to Protect My Company from Undermining

Summary

Konnected Minds Podcast

Host: Derrick Abaitey
Segment: No Family in My Business – I Exclude Relatives to Protect My Company from Undermining
Date: May 3, 2026

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Episode Overview

This episode dives into the often controversial topic of family involvement in business. The guest (B), a catfish farm owner, candidly explains why he deliberately excludes extended family from working in his company to safeguard its performance, culture, and management integrity. The conversation expands into the unique challenges of building passion in a team, strategies for catfish farm profitability, and smart approaches to rural-urban marketing in Ghana.

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Key Discussion Points & Insights

1. No Family in My Business: Protecting Company Integrity

• Clear Boundary: The guest firmly distinguishes between immediate family (wife, daughters) and extended family regarding employment in his business, Modikaya Farms.
  • "No family member of mine will be employed in Modikaya Farms. No. My daughters? Yes. My wife? Yes. Anyone related to my wife? No way." (B, 00:05)
• Reasoning: Extended family members are perceived to leverage familial relationships to subvert normal channels of authority, enabling favoritism and potentially undermining the business.
  • Speaker B: “When you are not there, in your absence, they will come. ‘Oh, because… I’m the brother, do this.’ …They will pull your company down.” (00:22)
• Cultural Comparison: While emphasizing this as a local issue, B references Japanese business culture, highlighting different approaches to company stewardship and ethics.
  • “I never heard of somebody say, okay, I’ll not let my uncle work here, blah, blah, blah, in Japan… the ethics there are very different.” (B, 01:35)

2. Workplace Authority and Company Values

• Decisive Leadership: The guest emphasizes firm, value-driven leadership, drawing on both business logic and personal Christian beliefs.
  • “If you fool around in my company, I fire you… I nip it in the bud. I don’t waste time. I’m a Christian. But…no, no, I don’t waste time.” (B, 02:16)
• Ownership Mindset: The company is regarded as a stewardship responsibility, not just a business.
  • “This is the property of the God I serve, and I have to manage it well.” (B, 02:35)

3. Founder Passion & Succession Concerns

• Problem Identified: Many founders are passionate, but successors (often family) may lack this drive.
  • Host Derrick: “They have so much passion when they start the business… but the people they leave it to don’t have that passion.” (A, 02:54)
• Solution: Building a culture where all employees share the founder’s passion is crucial to sustainable growth.
  • “You have to get people who buy into your passion… if I’m able to sell my passion into them, even if I’m not around, they know this is how this business should be.” (B, 03:04-03:18)

4. Realities of Catfish Farming in Ghana

• Financial Picture: The guest’s farm has growing revenue but hasn’t reached profitability, mainly due to asset depreciation and high input costs.
  • “We are not making profits, but I see revenues are going, growing…depreciation is a lot, is heavy for me.” (B, 03:52)
• Cost Breakdown: Feed accounts for about 70% of production costs; reducing feed costs or adding value through processing increases competitiveness.
  • “If you look at your total cost of production, the feed is about maybe 70% of your total cost.” (B, 04:43)
• Packaging and Processing: By drying and packaging fish, he avoids unfavorable price negotiations and reaches new markets.
  • “If I dry and package, I become more competitive. I don’t rely on…point and key people coming to buy my fish.” (B, 05:23)

5. Innovative Marketing Tactics for Small Farms

• Market Research: Understanding local demand and consumer preferences is fundamental; direct marketing and segmenting via WhatsApp groups are deployed.
  • “If I come to East Ligon, there are people who are going to buy it…Or I can go to Kofoidua…create a WhatsApp group…then we bring it to you.” (B, 07:16-07:26)
• Product Adaptation: Differentiating product and packaging for distinct markets—what works in rural Ghana may differ greatly from urban expectations.
  • “Consumer preferences are also very different. So you need to look at, okay, what do these people want?” (B, 07:29)
• Pressure to Sell: Emphasizes sales as the core lifeblood of the company.
  • “If we don’t sell, you don’t get paid.…the ultimate goal is to sell. How do you sell? Sit down and think about it.” (B, 08:41-08:59)

6. Scaling & Profitability Strategies

• Controlling Costs: While making his own feed is not feasible due to resource constraints, scale offers leverage in negotiations with suppliers.
  • “If you’re doing 10,000 tons, you have leverage over these feed companies because they know that you’re going to buy from them.” (B, 09:40)
• Profitability Equation: Describes the impact of operating margin and asset turnover—contrasting high-volume, low-margin retailing with high-margin, low-volume manufacturing.
  • “…when you multiply your operating profit margin by asset turnover you get the profitability return on assets, right?” (B, 09:49)

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Notable Quotes & Memorable Moments

• On company boundaries:
  “No family member of mine will be employed in Modikaya Farms…My cousins? No way. My brother? No way.” (B, 00:05)
• On passion:
  “If the passion is just with me, it stays with me. It doesn’t percolate the other guys around me.” (B, 03:10)
• On feed costs:
  “If you look at your total cost of production, the feed is about maybe 70% of your total cost.” (B, 04:43)
• On decisive leadership and faith:
  “If you fool around in my company, I fire you…I don’t waste time. I’m a Christian. But…no, no, I don’t waste time.” (B, 02:16)
• On market research:
  “Before the 4Ps, you need to do some kind of research. What is the demand for your product in where you are?” (B, 06:48)
• On adapting for urban markets:
  “If I come to East Ligon, there are people who are going to buy it…You can do direct marketing…” (B, 07:16)
• On driving home the main message:
  “If we don’t sell, you don’t get paid. No, I pay them. But I tell them, if you don’t make revenues one day you come back and I will tell you, go home, we’re closing down.” (B, 08:41)

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Timestamps for Key Segments

• 00:05 – No family in the business policy explained
• 01:20 – Influence of family, cultural references, and Japanese business ethics
• 02:16 – Handling discipline and values as a business owner
• 03:04 – Founder passion and team dynamics
• 03:52 – Profitability challenges in catfish farming
• 04:43 – Cost structure of catfish farming
• 06:30 – Marketing, 4Ps, and local versus urban markets
• 08:41 – The importance of sales and pressure to sell
• 09:49 – Scaling, operating profit, and asset turnover

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Conclusion

This episode provides an unfiltered, practical look at why some African entrepreneurs choose to keep extended family out of their companies—and how cultural realities, passion, and professional boundaries play crucial roles in long-term business health. It also offers actionable lessons for agribusiness profitability and modern, local marketing tactics, resonating with anyone balancing tradition, familial obligations, and business ambitions in Africa and beyond.

Transcript

[A]

Must family always be the people to run your business?

[B]

No.

[A]

Thank you.

[B]

No. No family member of mine will be employed in Modikaya Farms. No. My daughters? Yes. My wife? Yes. Anyone related to my wife? No way. My cousins? No way. My brother? No way.

[A]

Why?

[B]

Because when you are not there, in your absence, they will come. Oh, because, oh, I'm the brother. Do this. Meanwhile, it's not something I recommend. I don't underline what he's saying, but for that fear that, oh, he's the brother of the CEO or the boss, they will do it. And then they will pull your company down. I want people who are outside that sphere. So the big domain is there, but that domain excludes anybody related to Kwame Buache, with the exception of my daughters and my wife.

[A]

But why is that so important?

[B]

It is important because they can undermine me. It is important because they will come in and the workers will be afraid. Oh, yeah, he's my uncle. Therefore, do this. I want this. This is going here. He told you to send it to Mr. X. But I'm saying send it to Mr. Y. He's my uncle. I'm saying it. I'm going to talk to him. And you don't want that. I personally don't want that to happen.

[A]

I sat here and had conversations with Honorable Kende Japon, and he said that, you know, if you live in this part of the world and you want your business to thrive, don't work with family.

[B]

Yeah, he's right. I agree with him.

[A]

Is it just with us Africans or.

[B]

I. I don't know. But if you. If you. I would also take you back to. Yeah, the best word is, maybe you go to Japan and look at what the Japanese did. People are talking about China, but all these Asians, they looked at Japan as a model. Japan was a model for them. Yeah. So you go to the source and see how they were able to bring up their companies. And of course, culturally, yeah, the ethics there are very different. I never heard of somebody say, okay, I'll not let my uncle work here, blah, blah, blah, in Japan.

[A]

Okay.

[B]

But so I look at my country, I look at how we are, and then I have to make that decision.

[A]

What's your view of the Ghanaian?

[B]

We have good Ghanaians and bad Ghanaians. Somebody will see me as a wicked Ghanaian. Somebody will see me as a kind Ghanaian. If you fool around in my company, I fire you. I nip it in the bud. I don't waste time. I'm a Christian. But no, no, I don't waste time. So So I look at Monika, if I was like, okay, this is the property of the God I serve and I have to manage it well. So you can't fool around there and see me sitting down watching you. No, you can't destroy that. No. I'm not permitted to do that. So that is my concept. People, if you're not a Christian, you will not understand. But that's okay. You can have your own views, but that is how.

[A]

So this is always the issue I have at founders. Right. They have so much passion.

[B]

Yeah.

[A]

When they start the business and running the business, but the people they leave it to don't have that passion.

[B]

You have to get people who buy into your passion.

[A]

Right.

[B]

To grow your business. But if the passion is just with me, it stays with me. It doesn't percolate the other guys around me. And so when I'm not around, they have to find a way of moving this business forward. But if, if I'm able to sell my passion. Yep. Into them, or I'm able to infuse my passion into them, even if. If I'm not around, they know. No, this is how this business should be, should be moving. And people will come with different ideas, new ideas, but the passion is there. And then the business will grow.

[A]

Let's figure out a way to talk about the profitability of catfish farming.

[B]

Okay.

[A]

Currently in Ghana.

[B]

So we, our business started in 2023. Yeah. We're not making profits, but I see revenues are going growing. Okay. Why? Because maybe I have a lot of assets which are being depreciated and all those kind of things. So, yeah, depreciation is a lot is heavy for me. Now, the catfish business, some people come and tell you, oh, I started with 500. I made this amount of money, no problem. That's okay. That's a story. I'm not challenging them. However, if you look at the cost variables, you're going to buy fingerlings. If you don't buy good fingerlings, you might lose them. So give yourself maybe 5% mortality rate. You lose 5%, you retain 95% of that. You have to buy feed. If you look at your total cost of production, the feed is about maybe 70% of your total cost.

[A]

I see.

[B]

Now you can't reduce the, the price of feed because the company making the feed wants to make money. You don't control them, consumers don't control them. So that's what they sell to you. Now how do you make money when your. The feed cost is 70%? So you left, you're left with okay, 30, maybe 30 to play around with. Okay. You have to pay your workers getting the feed to your farm. You need to transport the fee, the feed to your farm. So the big one. Some people will say, okay, I'm going to make my own feed. If you're able to do that, yes, you will. You can reduce your feed cost and make money. So feed cost is one. Number two is if you are not processing your fish and you're selling it fresh, you feed it, it gets to a certain point, somebody comes in to buy and then the person tells you, yeah, I'm not going to buy it at 1 kg for 40 cedis. I'll give you 30 cedis. You say, no, he goes away, he comes back the next day or maybe a week later. I'll give you 30 cedis if you are lucky. If you are very luck. He will stay at 30. He might even go down. You are buying feed to feed this fish. So out of desperation, some of them will sell and then they cry at night. How do you go about this? Okay, in my view, I decided to process the fish. People go to Makola, they go to Hejita market, wherever market to buy catfish. I mean, it's a staple in our diet. So I decided to dry the fish and package it. So if I dry and package, I become more competitive. I don't rely on, okay, point and key people coming to buy my fish. If they don't come, I'm in trouble. If they come, they buy it at a lower price. My price realization is not that high. But if I do, I do packaging, I'm okay.

[A]

But don't you then have to worry about selling it? You know, marketing and then selling it?

[B]

Yes. That is where the marketing comes to worry about. That is where the marketing comes in. Okay, now that is where it gets a little bit complicated. Okay, I shouldn't say complicated because I also covered advertising and all these companies in Japan. So you hear about the four P's. I think it's product, product price, something and place. They talk about 4Ps. I've forgotten. Maybe those people, those listeners. Maybe if you are, if you, if you've done marketing, you hear about 4Ps. But I think before the 4Ps, you need to do some kind of research. What is the demand for your product in where you are?

[A]

Okay, where the farm is.

[B]

Where the farm is.

[A]

Right.

[B]

If you're located in Kintampo and you want to sell in Accra, you are in big trouble.

[A]

I see.

[B]

So if I'm in Kintampur doing This I have to look at. Okay, what do they need in Kintapur? How do they want their fish to be in Kintampo? If I have to bring it to Accra, that's expensive. So you do that kind of research. Consumer preferences are also very different. So you need to look at, okay, what do these people want?

[A]

It may not even be in as beautiful packaging as this.

[B]

Exactly right. And then you have to target, because you cannot be jack of all trades. You have to target the market. So if I'm in Accra, do I have to send it to Makola? Maybe? No. But if I go to, I come to East Ligon, there are people who are going to buy it. So you can do direct marketing. You can come in and say, okay, this is what we are going to do. Or I can go to Kofo Radia and say, okay, I divide Kofoidia into segments and go in there and then I know that, okay, people here want this. I create a WhatsApp group for them, for me. And whatever you need, just put it on the WhatsApp, I see the order and then we bring it to you. So we have to be very innovative. Yes, innovative, very tactical about how you market your products.

[A]

But like, for me, that's a whole lot of work. Right. You are not just farming, worrying about what is happening in the farm. Now you need to go and sell it. Either you're using distributors or you're using consumers directly.

[B]

So I tell the workers, if we don't sell, you don't get paid. No, I pay them. But I tell them, if you don't make revenues one day you come back and I will tell you, go home, we're closing down. So the ultimate goal is to sell. We have to sell. How do you sell? Sit down and think about it.

[A]

And at the moment, your plan is what you just described. Just dry it, package it and then take it to the market.

[B]

Yeah. So this year our strategy is marketing. Marketing and marketing. Cutting costs. Yeah, we try to control our cost. But I don't have that managerial resource to be thinking about making my own feed. Okay. Because, yeah, to make your own feed, yes, you need to buy maybe maize, soybeans, blah, blah, blah, methionine, all those kind of things. But I'm thinking about my fish. So if Ranan or Beacon Hill can provide me with feed, I'll buy from them. Then how do I lower my cost? It's just scale. You need, you need the scale. If you're doing thousand, you're going to be in trouble. But if you're doing 10,000 tons. If you're doing 50,000 tons you have leverage over these feed companies because they know that you're going to buy from them.

[A]

Right?

[B]

So that is where in my old profession we there's something called operating profit or profit profit and then asset turnover. So when you multiply your operating profit margin by asset turnover you get the profitability return on assets, right? So you look at retailers, the margins are slim, the turnover is very high. You look at a company like maybe Fanuc Tokyo Electron. Fanuc makes robots. So the robots are they are not going to produce 15,000 robots per annum? No, maybe, maybe 50. So the margin is very high but the turnover is very small 0.50 but look at retailers you see that the margin is maybe 2%, 3% but the turnover is maybe 2, 3, 4 times because we buy it every day. So when you multiply this you realize that their profitability is high.

[A]

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