What’s the Best Company Succession Plan?
In the April 2023 Snapshot Survey, we asked contractors about how they plan to hand their company off to someone else in the future. Here’s one survey question and its results from the “Succession Planning for Business Owners” summary report, which is available in it’s entirety by Contractor University members here.
What Best Describes Your Current Succession Plan?
The second-most common response to this question was “hand over the business to a family member.” This is not surprising, as many home services businesses are family-owned and operated. However, it is important to note that this is not always the best option for succession planning. If there is no qualified family member who is interested in taking over the business, then it may be necessary to sell the business, as 39% of contractors said they plan to do, or find a non-family member to take over leadership
Here’s what an HVAC contractor from Nevada said in the survey:
“Within the next 10 years, we will have our lead tech transition into a supervisor receiving a salary and stock in the business. We will be training him weekly on all aspects of the business.”
