Issue 9 of 9: Low Barriers to Entry

Construction Ownership Transition Issue 9 of 9: There are Few Barriers to Entry for New Contractors.

D. Brown Management

December 10, 2018 1 minute read

Succession: Ownership Transition Issues - Number 9 Barrier to Entry. Don't Let an Ownership Transition Create Another Construction Contractor to Compete With You.

About 500 construction contractors start up each day.

Many of those are just people having an “entrepreneurial seizure,” as Michael Gerber describes in The E-Myth Contractor.
A few of these will have the grit and skills to build the ENR Top 400/600 contractors of tomorrow.
Others are experienced construction executives who will go on to build substantial construction businesses relatively quickly.
In most cases, a new contractor starting up will cause a serious talent drain on the contractor they leave, as well as changing the competitive landscape.

Make sure that your ownership transition plans don’t create another competitor.

Issue 9 of 9: Low Barriers to Entry

Continue building value in your business, yourself and your key team members with a good succession strategy....

Previous Next Go To Series

Related Insights Series

Issue 9 of 9: Low Barriers to Entry

Continue building value in your business, yourself and your key team members with a good succession strategy....

Previous Next Go To Series

Related Insights Series

A Typical Project - Understanding Cash Flow at the Company Level

As contractors face many opportunities in the market it is important to keep cash flow management top-of-mind. Growth eats cash and just a few hiccups in execution can put just about any contractor in a very bad position.

Cash Flow Tip 17 - Cascading Reporting Systems

Developing rigorous weekly Operating Rhythms in your business will help everything run smoother just like they do at the project level.

Vision + Execution

The first limitation most people and companies put on themselves is the size of their vision. While vision alone will not guarantee your achievement, a limited vision will nearly always guarantee limited achievement.