Business Succession Research Completed by the University of MN

Business Succession Research Completed by the University of MNOur guest for today's show is Michael Darger, U of M Extension Specialist, who focuses on community economics and Business Succession. His background in years with Economic Development agencies led him to focus on Business Retention and Expansion work, which eventually landed him at the U of M conducting and publishing important research on entrepreneurs and their exit plans.Michael and his team recently conducted some research on Minnesota companies with 5-500 employees, specifically on business transition preparedness. They received 300 responses, reaching a milestone of "statistical significance". It asked owners questions about their awareness, attitudes, aspirations and steps they've taken toward an eventual transition from their business. Some of the findings were surprising, Michael said.The most surprising was that a majority of respondents were unaware of what their selling options to employees might be. This directly correlates with whether they've had the proper advice on what their exit options could be. A large number claimed that the business would transfer internally to family members, but then many admitted that their would-be successors weren't ready or interested.When owners were asked in general how they'd rank themselves on their personal preparedness, they scored an average of 3.6 out of a possible high score of 6. Some said they were ready personally (Owner Readiness, as we call it) and some said their Business Readiness was dialed in. The responses can be explored in greater detail, to learn industry trends, company size, etc. Find the research and download the data here Listen to the episode here Connect with Julie Keyes, Keyestrategies LLCFounder, Consultant, Author, Pod-caster and Instructor