The Problem
If the business stops when you leave, you don't own a business.
You own a job with employees. That is how most Indian SMEs were built. It is also why they are so difficult to transfer.
The founder is the system
Relationships, sales, approvals, financial decisions, suppliers, customers and institutional knowledge all sit with one person. Family-owned manufacturing, food processing, pharma ancillaries, logistics and niche B2B firms are especially prone to this.
The founder is still central to daily operations. Children may not want to take over. There is no formal succession plan. Identity is intertwined with the company. The business may be profitable and still nearly impossible to hand over.
You do not necessarily want to sell. You may simply want to know what the business is worth, and what your options are.
A necessary distinction
Shares can be inherited.
A business has to be succeeded.
| Ownership | Management |
|---|---|
| Who owns it? | Who runs it? |
| Legal transfer | Operational transfer |
| Relatively simple | Much harder |
| Estate planning | Leadership planning |
Appropriate works on the gap between the two.
Inheritance is about ownership. Succession is about the ability to run the business. We solve the second problem.
The Founder Test
Could your business run without you for 30 days?
Answer privately. Eight questions. No score sent anywhere. This is a first look at dependence, not a valuation.
Question 1 of 8
Who approves payments?
If the honest answer is “mostly me”, choose I do.
Measure the dependence before you decide the destination.
The Succession Diagnostic is where the private work begins.