Journal of Business and Applied Management

Business viability is a main goal of family business. However, leaders are usually reluctant to let
off their power, even tend to be in charge beyond the age of retirement. The most fatal consequence of
reluctancy to hand over the leadership to his successor is the occurrence of "Prince Charles Syndrome".
Viability of family business requires a mature succession plan, maintaining family harmony, the
responsibility and unity of ownership, and maintaining superior resources. Succession plan becomes a
crucial issue in this family business. Succession planning should be a priority, by clarifying who the real
"Crowned Prince" appointed to continue the family business. In order for business viability to running
well, the second generation as a business successor must be well prepared, i.e. the process of the tacit
knowledge transfer, the full involvement of the next generation, and the planned regeneration. It is
needed of the willingness and magnanimity of current business owners and leaders to gradually let off
business de-facto and de-jure to the "Crowned Prince". With well-prepared succession planning, it will
avoid potential prolonged family conflicts.
Keywords: Business viability, succession plan, family conflict