When Susana Monaco launched her own fashion line for women in 1996, she thought if she worked hard and stayed focused on design, her company would succeed.
But despite being "born in the business," in Monaco's words, and having tremendous talent, her company, Susana Monaco, has been under-performing since 2009. Last year alone it suffered a net loss of $361,000, mainly because of low margins but also because of something more abstract: lackluster leadership.
On the latest episode of "The Profit," host and business guru Marcus Lemonis explains that running a successful business such as Monaco's namesake fashion label takes more than just creative genius; it requires a strong leader.
Monaco begins feeling burdened by her family on one side and her employees on the other. She doesn't have the confidence to stand up to either group.
Early on, Monaco's father Mario took control and unilaterally decided that Monaco should split stock of the company with her brothers equally. "He wants his family to be secure in life. This is old school way of doing things," Monaco explains.
Despite the fact that Monaco started and runs her business, her brothers who work for it, and who never put any of their own money into it, get two-thirds of it.