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....

Management System Hierarchy Example
A management system has hierarchies from culture through to the individual steps in a procedure. These hierarchies must be integrated with strategic decisions, the organizational structure, and training to create a competitive advantage.
Talent Alignment & Integration: Four Basic Layers
Talent must be aligned around four basic layers for contractors to achieve results. Integration of talent from the customer through to compensation creates optimum results for all parties over the long-term.
Coaching and "GPS Feedback" - John Wooden Example
The best coaches and superintendents all have an eye for detail and constant communication. Winning in construction or sports is about ensuring that thousands of details come together correctly. The game (or project) is won far away from the scoreboard.