Family Business

"22 saal se aise chal raha hai"

Rohit Bhandari, 25, just came back to Haldwani. B.Com from Dehradun, a certificate in digital marketing, and a head full of ideas. He walked into his father's hardware shop on a Monday morning, looked around, and said: "Papa, we need billing software. We need a Google Business listing. We should start home delivery for bulk orders. We're losing customers to that new store on Station Road because they have UPI and we're still doing everything in that notebook."

Bhandari uncle looked up from his register — the same register he's been writing in for 22 years — and said: "Beta, 22 saal se aise chal raha hai. Customers aate hain, maal dete hain, paisa aata hai. Kya problem hai?"

That evening, Rohit called his friend in Dehradun and said, "Papa won't listen." Bhandari uncle told his wife, "Ladka abhi aaya hai aur puri dukaan badal dena chahta hai."

Both were right. And both were wrong.

This scene plays out in millions of Indian families every year. A younger generation returns with education, exposure, and energy. An older generation has experience, relationships, and a business that works. The collision between "it's always been done this way" and "we need to change everything" is one of the most common — and most painful — dynamics in family business.

This chapter is about navigating that collision. Not by picking a side, but by building a bridge.

Family business is India's backbone

Let's start with a fact that doesn't get said enough: family businesses are not a lesser form of business. They are the dominant form of business in India.

Over 90% of Indian businesses are family-owned and family-operated. From the kirana store on the corner to some of the largest industrial groups in the country — Tata, Birla, Ambani, Godrej — family is at the core.

In Uttarakhand, this is even more pronounced. Walk through any town — Haldwani, Almora, Pithoragarh, Srinagar — and nearly every shop, every orchard, every dhaba, every homestay is family-run.

Why family businesses work:

• Trust. You know these people. You grew up with them. You don't need to verify their intentions.
• Commitment. A hired manager can leave. Family doesn't. There's a deep, personal investment in the business surviving.
• Long-term thinking. A family business thinks in generations, not quarters. Bhandari uncle isn't optimizing for this year's revenue — he's building something his children can inherit.
• Low overhead. No fancy offices. No HR department. No recruitment costs. Family members often work without a formal salary structure (which is a problem we'll address later).
• Resilience. Family businesses survived COVID, demonetization, and GST transition. They bend but don't break.

The goal isn't to turn a family business into a corporate one. The goal is to take what's already strong and make it stronger — with better systems, clearer roles, and smarter money management.

Roles and boundaries: Who does what?

The first source of conflict in most family businesses is this: nobody's job is clearly defined.

Everyone does everything. Or worse — one person does everything and resents it, while others do nothing and don't realize it.

Rawat ji grows and manages the apple orchard in Ranikhet. His wife manages all the finances — payments to workers, expenses, income tracking, bank interactions. This wasn't planned from day one. It evolved naturally over the years because she was better with numbers and he was better in the field.

But here's what makes it work: they both acknowledge each other's role. He doesn't interfere with her financial decisions. She doesn't second-guess his orchard management. They discuss big decisions together, but the daily operations are clearly divided.

This is the key: define roles, even within family.

It doesn't need to be a formal org chart. But everyone who works in the business should know:

1. What is my responsibility? What am I accountable for?
2. What decisions can I make on my own? And which ones need discussion?
3. When do we come together? What's the forum for joint decisions?

In Bhandari uncle's case, if Rohit is going to work in the shop, they need to agree:

• Rohit handles digital billing, online presence, and home delivery logistics
• Bhandari uncle handles supplier relationships, credit management, and in-store customers
• Pricing decisions are made together
• Weekly sit-down every Sunday evening to discuss the business

Without this clarity, every day becomes a tug-of-war.

Money in family business: The hardest conversation

If roles are the first source of conflict, money is the second. And it cuts deeper.

In many family businesses, money is treated as a single pool. The business earns, the family spends. There's no clear line between business money and personal money. And when there are multiple family members involved, the question of "who gets what" becomes explosive.

Rule 1: Pay everyone a salary — including family.

If Rohit works in the shop full-time, he should earn a salary. Not pocket money. Not "jitna chahiye le lo." A fixed, agreed salary. This does several things:

• It values his work properly
• It makes the business expenses transparent
• It prevents resentment ("Main din bhar kaam karta hoon and I have to ask for money?")
• It establishes him as a professional, not just a son helping out

The same applies to Bhandari uncle. He should draw a fixed salary too, not just take money from the cash register when he needs it. This is the only way to know what the business actually earns.

Rule 2: Separate business account from personal account.

Open a dedicated current account for the business. All revenue goes in, all business expenses come out. Family salaries are paid from this account into personal accounts.

This separation is not about distrust. It's about clarity. When you mix business and personal money, you can never tell if the business is profitable or if you're just spending less than you earn.

Rule 3: Decide the reinvestment ratio.

Every month (or every season, for agriculture), decide: How much of the profit goes back into the business? And how much goes to the family?

Rawat ji reinvests about 40% of his apple season earnings into the orchard — better saplings, drip irrigation, cold storage. The remaining 60% is family income. This ratio is discussed with his wife, not decided alone.

Rule 4: Financial transparency.

Don't let one person control all the money without others knowing the numbers. This is how trust erodes — slowly, then suddenly. Even if one person manages the money (like Rawat ji's wife manages finances), the numbers should be visible to all stakeholders.

A simple monthly summary — revenue, expenses, profit, savings — shared with everyone involved. That's all it takes.

Uncomfortable truth: In many families, the patriarch controls the money and nobody questions it. This works until it doesn't. When the patriarch falls ill, passes away, or can no longer manage — and nobody else knows the accounts, the passwords, the supplier terms, the loan details — the business collapses. Transparency isn't just fairness. It's survival.

The generational transition

Back to Rohit and Bhandari uncle.

Rohit wants to bring digital billing software into the shop. Bhandari uncle thinks the handwritten register is fine. Who's right?

Both. And the answer isn't to pick one — it's to find the bridge.

What Bhandari uncle's experience gives him:

• He knows every contractor in the area personally. They trust him, not a software.
• He knows which customers will pay on time and which need to be pushed. No algorithm can replace this.
• He knows when to stock up and when to hold back — a feel for the market that comes from 22 years.
• He survived three downturns. He knows what "bad times" really look like.

What Rohit's education gives him:

• He understands that the new generation of customers expects UPI, Google Maps listings, and online communication.
• He can see that the shop next door is capturing younger customers with a modern setup.
• He can build systems that reduce errors — digital billing catches mistakes that a handwritten ledger doesn't.
• He knows that without an online presence, the shop is invisible to anyone who searches "hardware shop near me."

The bridge: phased transition.

Instead of a revolution, try an evolution:

Phase 1: Shadow (Month 1-3). Rohit works alongside his father. Learns the existing system. Meets all the suppliers and regular customers. Understands why things are done the way they are. No changes yet.

Phase 2: Parallel run (Month 4-6). Rohit introduces billing software, but runs it alongside the paper register. Both systems capture the same transactions. This lets Bhandari uncle see the software in action without feeling that his system has been replaced.

Phase 3: Gradual takeover (Month 7-12). As confidence builds, the digital system becomes primary. Rohit takes over the daily billing and inventory management. Bhandari uncle focuses on supplier relationships and credit management — the areas where his experience is irreplaceable.

Phase 4: Partnership (Year 2+). The business now has the best of both worlds. Bhandari uncle's relationships and judgment. Rohit's systems and digital presence. They're not competing — they're complementing.

The golden rule for the younger generation: earn the right to change things by first understanding why they are the way they are. Don't walk in and declare everything broken. Walk in, learn, appreciate, and then improve.

The golden rule for the older generation: your experience is invaluable, but the world has changed. The customer who walks into your shop today also shops on Amazon. If you don't adapt, you don't survive — no matter how good your relationships are.

Succession planning: Who takes over?

This is the question nobody wants to ask. And by the time they're forced to ask it, it's usually too late.

Who will run this business after you?

In traditional Indian families, the answer is assumed: the eldest son. But this assumption creates problems:

• What if the eldest son isn't interested? Forcing someone into a business they don't want destroys both the person and the business.
• What if a daughter is more capable? Ignoring her because of gender is not just unfair — it's bad business.
• What if no child wants to continue? This is increasingly common as young people move to cities for jobs.

Rawat ji thinks about this often. He has two children — a son studying engineering in Dehradun and a daughter doing her MBA in Delhi. Neither has shown interest in the orchard. "What happens to these trees when I can't climb anymore?" he wonders.

The answer isn't to guilt-trip children into staying. The answer is to build systems.

Document everything. If Rawat ji writes down his processes — which varieties to plant when, which pesticides work, which mandis pay the best price, how the cold storage system works, what the annual calendar looks like — then the orchard can be run by a hired manager, even if his children pursue other careers. The knowledge shouldn't live only in his head.

Build management capacity. Train a trusted worker or hire a manager who can handle operations. The owner doesn't have to be the operator.

Consider all options:

• A child takes over (ideal if they're willing and capable)
• A family member (nephew, cousin) who's interested
• A hired professional manager with the family retaining ownership
• Leasing the business or property
• Selling the business as a going concern

The worst option is no plan at all — where the founder becomes too old or falls ill, and the business simply collapses because no one knows how to run it.

Siblings and relatives as business partners

Neema and Jyoti are sisters who run a homestay together — Neema in Munsiyari, Jyoti in Binsar. They make it work because the division is crystal clear:

• Neema handles guest relations, bookings, and the Munsiyari property
• Jyoti handles the Binsar property, marketing, and their social media
• Finances are managed jointly, with monthly reconciliation
• Big decisions (expansion, pricing changes, new investments) require both to agree

But not every family partnership works this well. The most common disputes:

1. Unequal effort. One partner works 12 hours a day, the other shows up when they feel like it — but both take equal profit.
2. Money disagreements. One wants to reinvest, the other wants to take money out.
3. Spouse interference. A partner's husband or wife starts influencing business decisions without being part of the business.
4. Unresolved childhood dynamics. Old resentments from growing up together play out in business decisions.

The solution: Write it down.

Even between siblings. Especially between siblings.

A partnership agreement should cover:

• Who owns what percentage
• Who is responsible for what
• How profits (and losses) are shared
• How much each person draws as salary
• What happens if one person wants to exit
• How disputes are resolved (a neutral third party, like a CA or family elder)
• What happens if one partner passes away

"But we're family! We don't need a contract!" This is exactly what people say before things go wrong. The contract isn't for when things are going well — it's for when they're not. And having it before a dispute means you can resolve problems calmly, by referring to what was agreed, instead of fighting about it when emotions are high.

Exit clauses: uncomfortable but necessary.

What if Jyoti decides she wants to move to Delhi? What if Neema wants to bring her husband into the business? What if one sister wants to sell her share?

These scenarios need to be discussed and documented before they happen. An exit clause should cover:

• How is the business valued?
• Does the remaining partner get first right to buy the exiting partner's share?
• What's the payment timeline?
• How are shared assets divided?

It feels awkward to discuss this when everything is going well. But it's a hundred times more awkward — and a thousand times more expensive — to figure it out during a fight.

Women in family business: The invisible backbone

Let's say something that needs to be said clearly: in most Indian family businesses, women do an enormous amount of work that is never formally acknowledged.

Pushpa didi runs a chai shop in Rishikesh. Her husband has a government job. She opens the shop at 5:30 AM, manages the helper, handles customers, buys supplies, manages cash flow, and closes at 8 PM. It is, by every definition, her business.

But if you ask "whose shop is this?" — the answer, legally and socially, might be "her husband's." Because the registration is in his name. The lease is in his name. The bank account is in his name.

This is wrong. And it's fixable.

Acknowledge the work. If a woman runs the business day-to-day, she is the business owner. Period. The family should recognize this — not just verbally, but legally.

Formalize the role. Put her name on the registration. Add her as a signatory on the bank account. If it's a partnership, include her as a named partner. If she manages finances, she should have access to all financial information — not just the cash box.

Property and ownership matter.

In many Uttarakhand families, the shop or the land is registered in the man's name. If anything happens to him, the woman — who may have been running the business for years — suddenly has no legal standing. This is especially dangerous in families with property disputes between brothers.

• Register the business in the woman's name if she is the primary operator
• At minimum, make her a joint owner or partner
• Ensure there's a will that protects her rights
• Update property documents and nominations

Rawat ji's wife has managed the orchard's finances for 15 years. Without her record-keeping, the entire operation would be chaos. Last year, Rawat ji added her as a joint account holder and made her a partner in the business on paper. "It was always her business too," he said. "The paper just needed to catch up."

This is not a feminist point. This is a business continuity point. If the person who actually runs the business has no legal authority, the business is one crisis away from collapse.

Modernizing a family business

Back to Rohit. He wants to modernize the shop. Good instinct. But how?

The mistake most young people make: they want to change everything at once. New software, new marketing, new delivery model, new pricing — all in the first month. This overwhelms the older generation, disrupts existing customers, and usually fails.

The right approach: one change at a time, with measurable results.

Step 1: Digital billing (Month 1-2)

Start with billing software. There are free or cheap options — Vyapar, myBillBook, Khatabook. Enter every sale. This immediately gives you:

• Accurate daily sales data
• Inventory tracking
• GST-compliant invoices
• Customer purchase history

Let the paper register continue alongside for a month. When Bhandari uncle sees that the software catches errors the register misses, he'll come around.

Step 2: Digital payments (Month 2-3)

Set up UPI (Google Pay, PhonePe, Paytm). Put the QR code prominently at the counter. Many customers — especially younger ones — prefer UPI. You're not removing cash; you're adding an option.

Step 3: Google Business listing (Month 3)

Create a Google Business profile. Add photos of the shop, operating hours, phone number. When someone searches "hardware shop near me" on Google Maps, your shop should appear. This is free and takes 30 minutes to set up.

Step 4: WhatsApp for customer communication (Month 3-4)

Create a WhatsApp Business account. Share price lists, new stock updates, and accept orders via WhatsApp. Many of Bhandari uncle's contractor customers would love to check availability before driving to the shop.

Step 5: Home delivery for bulk orders (Month 6+)

Once you have digital billing and order management, adding delivery for large orders (cement bags, pipe bundles) becomes easy. Charge a delivery fee or build it into the price.

Step 6: Online presence (Month 9+)

List the shop on IndiaMART or JustDial for B2B customers. Consider Instagram for showcasing new products.

Each step builds on the previous one. Each step is small enough to not disrupt the business. And each step shows visible results, which builds the older generation's confidence in the changes.

Ankita's lesson: When Ankita started her D2C pahadi food brand on Instagram, she didn't build a website, hire a team, and rent a warehouse on day one. She started with her kitchen, one product (pahadi chutney), and her phone. She added products, platforms, and processes one at a time. The same principle applies to modernizing an existing business — start small, prove the concept, then expand.

When family dynamics hurt the business

Not everything about family business is rosy. Let's be honest about the problems:

1. Emotional decisions over business logic.

"My brother needs a job, so I'll put him in charge of the new branch." But your brother has no experience in retail and no interest in learning. You've just set up the new branch to fail — and created a situation where firing your brother will tear the family apart.

2. Hiring unqualified family members.

A cousin who can't be trusted with cash is put behind the counter because "family ko mana nahi kar sakte." A nephew who doesn't show up on time is tolerated because he's "apna." This destroys employee morale (why should non-family employees work hard if family members don't?) and drags down the business.

3. Avoiding difficult conversations.

"Papa doesn't know the shop is losing money, and I can't tell him because it'll hurt him." "My partner's wife is taking inventory home, but I can't say anything because it'll cause a family fight." The longer you avoid the conversation, the bigger the problem gets.

4. Property disputes leaking into business.

Two brothers run a shop together. Their father passes away. Now there's a dispute about the property — who gets the shop building, who gets the house. The business becomes collateral damage in a property war that was never properly planned for.

When to bring in outside help:

• A CA (Chartered Accountant) to set up proper accounting, separate business and personal finances, and provide neutral financial advice
• A lawyer to draft partnership agreements, wills, and property documents
• A business consultant for strategic decisions where family emotions cloud judgment
• A family mediator when conflicts become too personal to resolve internally

Bringing in an outsider feels like admitting failure. It's not. It's admitting that you care about both the business and the family enough to protect them from each other.

Legal protection for family businesses

Most family businesses operate on trust alone. And trust is essential — but it's not enough. Here's the minimum legal protection every family business needs:

1. Partnership deed.

If two or more family members own the business, get a written partnership deed. It should cover:

• Ownership percentages
• Profit and loss sharing
• Roles and responsibilities
• Dispute resolution mechanism
• Exit process

Cost: ₹2,000-5,000 through a lawyer. The cost of not having one: potentially lakhs in disputed money and destroyed relationships.

2. Will and succession plan.

Every business owner needs a will. Not at 70 — now. It should clearly state:

• Who inherits the business
• Who inherits the property
• How other family members are compensated
• Who becomes the decision-maker

Dying without a will (intestate) means the law decides who gets what — and the law doesn't know your family dynamics, your promises, or your intentions.

3. Property documentation.

Ensure all property related to the business — shop, godown, land, equipment — has clear, updated documentation:

• Title deeds in order
• Mutation records updated
• Lease agreements in writing (even with family landlords)
• No encumbrances or disputed claims

4. Insurance.

• Business insurance — covers fire, theft, natural disaster
• Life insurance — for the primary earner, so the family can sustain if something happens
• Health insurance — because one medical emergency can wipe out years of business earnings
• Keyman insurance — if the business depends heavily on one person

5. Nomination and joint ownership.

• Bank accounts should have nominees
• Fixed deposits and investments should name beneficiaries
• Consider joint ownership for critical assets so that access isn't blocked if one person is unavailable

Rawat ji spent ₹8,000 getting a proper will drafted, his property documents updated, and his wife added as joint owner of the orchard. "Best ₹8,000 I've ever spent," he says. "Now I know that whatever happens, she won't have to fight for what's already hers."

Making it work

Family business is hard. It combines the pressures of business with the complexities of family. You can't fire your father. You can't unfriend your sister. Every business disagreement is also a personal one.

But when it works — and it often does — family business is something beautiful. A father's legacy passed to a son. Two sisters building something together. A husband and wife as partners in every sense. A business that doesn't just survive but carries forward the values, the relationships, and the identity of a family.

The key is to separate the family dinner table from the business table — not by loving each other less, but by respecting the business enough to run it professionally.

Rohit and Bhandari uncle? They'll figure it out. Rohit will learn to respect 22 years of knowledge. Bhandari uncle will learn to trust a laptop. And one day, that hardware shop in Haldwani will have a Google Maps listing, a WhatsApp Business number, digital billing — and a handwritten register on the counter, because some things are too precious to throw away.

In the next chapter, we look at what happens when your business is rooted in a specific place — the opportunities and challenges of local and offline business in small-town India.