The Succession Cliff
Statistics show that less than 30% of family businesses survive into the second generation. The reason is rarely market failure; it is family failure. The informal decision-making style of the Founder ("Bauji") clashes with the ambitions and new ideas of the Next Gen. Navigating this transition requires more than just good intentions; it requires family business succession planning India.
Separating Ownership from Management
A Family Business Advisor brings emotional neutrality to a highly charged situation. They help the family distinguish between "Ownership" (who gets the dividends) and "Management" (who runs the company). Just because you have the last name doesn't mean you get the CEO title. This distinction is crucial for long-term survival and professionalization.
The Family Constitution
The solution is often a "Family Constitution" a documented agreement that sets the rules. How do family members enter the business? What are the criteria for promotion? How are disputes resolved? By writing the rules *before* the conflict happens, you protect both the family relationships and the business legacy. This is how to scale a family business without breaking the family apart. It moves the business from a personality-driven model to a process-driven institution.