About two-thirds of small businesses survive at least two years, 50% survive five years or more and one-third survive 10 years or more, says the U.S. Bureau of Labor Statistics, Business Employment Dynamics. However, the construction industry has the lowest survival rates over time. While the BLS doesn’t speculate on why small construction businesses fail, most in the industry concede that the lack of business knowledge is a big contributor.
The plumbing, heating and cooling contracting industry is no exception. Many PHC small businesses were started by plumbers and heating technicians who wanted to strike out on their own, yet had little to no experience running a business. They were unfamiliar with business plans, key performance indicators, marketing campaigns, technician sales and installation training, customer service rep training, product and technology updates, and employee recruiting.