Build Your Most Valuable Asset

There are five main value levers that contractors can pull to truly increase the value of the business as measured in long-term return on capital and valuation during a succession.

D. Brown Management Profile Picture
D. Brown Management
April 12, 2018 1 minute read
Share
Leadership Tools: Protecting and Growing your most valuable asset. Team, Capabilities, Customers, Operations, and Capital.
  1. Invest in building a management team that can not only manage the business without you but can actually accelerate growth.  
  2. Invest in building operational capabilities for project types and customers that have barriers to entry from competitors.  
  3. Delight your customers building a strong reputation and recurring work.
  4. Optimize your operations through training, equipment, technology and process improvements to be extremely competitive.  
  5. Manage your capital effectively minimizing cash tied up for operations.  

There is no deal structure that can be put together for a succession that will create value.  Deal structures can transfer value efficiently but cannot create value. 

True value is only created by constantly pulling on all of these levers making them part of the DNA of the business.  We help contractors in all these areas.

Schedule a call with us to learn more

Resource - 2 Second Lean
Dozens of practical and fun ways to save a few more seconds each day. 3 minutes per day of additional productive time on tools (ToT) equals about a 1% labor savings - or $10K for every $1M in job cost labor. Helps develop a continuous improvement culture.
Related Article
Incentive Compensation for Contractors - Alignment
One of the most challenging aspects of incentive programs is communicating demonstrated success in such a way that every functional group believes they have direct impact on their incentive outcome and that it is fairly applied across all stakeholders.
Related Article
Prepare Your Business - People
Your people are your business. This is especially true for contractors where nearly 100% of competitive differentiators are the experience of your people. Now we are faced with lots of unknowns and yet we must act decisively.
Related Article