In context with Indian market it is third highest in terms of number of companies, which are running business.
This is evident due to the society aspects and relationships that are built over period of time and the values of Indian society. This aspect of family business contributes greatly to the employment segment in small, medium and big corporates.
Lot of family business have scaled up and have grown over the years but this is not the scenario with all the family business, though the family business is Third largest in India it also has lot of fatalities which come due to various reasons that prevail in the family where in the relationship takes the precedence instead of informed decision making.
At 5NBC we understand the fabric of the family run business and the implications and decisions made by the family either based on information or on relations.
Family run business needs change if need to fight out in market which competition which is arising be it technology change, perception change, decision making de centralization which is the major hurdle that we come across in family business.
At 5NBC we believe in oldest theory of mankind “SURVIVAL OF THE FITTEST” this is where we start the process of changing the family business. The family run business with second generation has undergone sea change with lot of entrepreneurial spirit arising from second generation who are ready to venture out from the existing business and get started on own.
While preparing the blue print for family business we also keep in mind the decision making and the process involved and the factors kept in mind to arrive at decisions.
A hindrance, which we have seen in our experience of re forming family business, is at the management, which wants to change, but not ready to undergo change.
Strategies are based on
- Fabric of family business
- Clarity of why change is required
- Preparing second line generation
- Restructuring for the growth