Snapshot Survey Results | Succession Planning For Business Owners
In the April 2023 Snapshot Survey, we asked contractors about their approach to establishing a succession plan. Here’s one survey question and its results from the “Succession Planning For Business Owners” summary report, which will be available in its entirety to EGIA members on 5/26/23.
Do you currently have a succession plan for your business or a personal exit strategy?
Succession planning is a crucial aspect of running a successful contracting business as it enables contractors to evaluate their company’s strengths and weaknesses, helping them to identify areas for improvement and optimize their business practices, as well as identify and groom potential leaders. In our recent survey, only 35% of contractors indicated that they have a succession plan, or exit strategy, in place. This leaves the majority of businesses vulnerable to potential disruptions if something unexpected were to occur. Implementating a succession plan provides many benefits for contracting businesses as it creates a sense of security for employees, opportunities for growth and development within the company, as well as ensures a smooth transition of leadership. In-short, a well-executed exit strategy can provide a multitude of benefits and create opportunities for contractors to take their businesses to the next level.
Here’s what an HVAC contractor from California said in the survey:
“As a newer business owner succession planning was not on the top of my list of priorities but after trying to grow, both as an owner and entrepreneur, I am realizing that this should be just as important as other parts of my business plans.”
