As recorded in the early Hasidic work Mekor Boruch (first published in 1880 from handwritten manuscripts), at the time of the Baal Shem Tov's death, Rabbi Pinchas of Korets and Rabbi Jacob Joseph of Polonoye, two of the Baal Shem Tov's closest disciples, reported to the Hasidim that the Baal Shem Tov had designated Reb Boruch as his successor, and instructed Reb Pinchas to take responsibility to carry out those wishes.
Reb Boruch was only seven at the time of his grandfather's death, and was raised in Reb Pinchas' home, where the Baal Shem Tov's other close disciples and other leaders of the Hasidic movement visited regularly to check on his progress and assist with his preparation to assume his grandfather's mantle.
Many of his grandfather's disciples and the great Hasidic leaders of the time, regularly visited the Rebbe Reb Boruch'l as he was called, including the Magid of Chernobyl, the Magid of Mezritch, Rabbi Shneur Zalman of Lyadi (founder of the Chabad Hasidic movement), the Chozeh of Lublin, and others.
Reb Boruch was the first chasidic leader to accumulate great wealth from his devotees through the practice of petek and pidyonot.
At the time, Reb Boruch was incensed by his publication Tanya, and by Rabbi Shneur Zalman's insistence that communal funds be given freely to charitable causes.