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 Profile Picture
Share
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....

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....

Definitions for The Business of Building
Building a project requires knowledge and skill in using thousands of construction specific definitions, acronyms, and metrics. Building a business including the development of people has its own vocabulary that forms the foundation of communication.
A Typical Project - Cash Flow S-Curve
Ensuring great financial outcomes is the ONLY way to build a sustainable construction business that can serve customers and develop team members over the long-term.
4 Different Strategic Planning Objectives
Before moving into a strategy or planning session, understand which of the four broad objectives you are working to accomplish knowing they may be different for different parts of the company.