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.

This Series (24 of 45)

Issue 7 of 9: Growth Strategy Issue 8 of 9: Industry Trends Issue 9 of 9: Low Barriers to Entry The Basic Math of Ownership Transitions Valuing a Construction Business

This Series (24 of 45)

Issue 7 of 9: Growth Strategy Issue 8 of 9: Industry Trends Issue 9 of 9: Low Barriers to Entry The Basic Math of Ownership Transitions Valuing a Construction Business

Learning, Doing and Teaching

Growth in life, career, and business is about a continual cycle of learning, doing, and teaching.

Ownership Transition - Key Buyer Risks

While different, buyers of a construction business have just as many risks as sellers. Deeply understanding the risks for both parties is a great start to creating the foundation of a deal.

Delivering Advanced Preconstruction Services

Delivering Advanced Preconstruction Services is the rigorous process of ensuring budgets are met along with maintaining features critical to the project owner / users.