Sundt and Growth of Wealth

One of the most common and dangerous misconceptions we hear about ownership in a construction company is that it’s all about perks owners get.

D. Brown Management Profile Picture
D. Brown Management
January 3, 2019 2 minute read
Share

Perk (/pərk/) noun:  Abbreviation of perquisite - money, goods, or other benefit to which one is ENTITLED as an employee or as a SHAREHOLDER of a company.

Succession: Investing in a Construction Business. Book: Level Headed, Inside the Walls of One of the Greatest Turnaround Stories of the 21st Century by J. Doug Pruitt and Richard Condit.
  • What kind of vehicle can I get?
  • What kind of expenses can I get reimbursed?
  • What memberships can I get paid for?
  • What travel and entertainment can I get as benefits?
  • How much time can I take off?
  • How big will my office be?  

If these are the questions that come up, they are 100% the wrong level of questions.  

The biggest “perk” to being an owner of a construction company is the opportunity for your money get a 20-35% annual rate of return versus the 8% or so that the market provides.  

Owners who are focused on exploiting that single “perk,” viewing it more as a privilege, are the ones who will truly outperform in the long run.

Sundt is a great example of this alignment

Building a Systems Development Team - Support
The need for support, training, and maintenance of developed systems should not be underestimated.
Related Article
Production Tracking - Total Daily Production
Look at productivity as a daily “Jar” where your objective is to pack as much “Earned Value” into it as possible. Look at your costs in three major categories and focus on tracking what matters the most.
Related Article
Tax Deferral vs Tax Savings
Tax savings are very different than tax deferrals. Too often these are misunderstood by owners leading to negative surprises down the road with the most common being the switch from cash to accrual accounting in the earlier stages of growth.
Related Article