Issue 9 of 9: Low Barriers to Entry

Construction Ownership Transition Issue 9 of 9: There are Few Barriers to Entry for New Contractors.

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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....

Building vs Demonstrating Capability
Building a sustainably growing construction business is a huge challenge for everyone on the team. Building an effective project team across dozens of different companies with sometimes competing interest is incredibly difficult.
Functional Time Horizons
Starting out, the time horizons for strategy, winning work, and doing work are similar. As a contractor grows from 150 people to 500 people and beyond, those time horizons must stretch further apart while remaining integrated.
Taking 100 Percent of Responsibility
Imagine having 100% control over everything. It starts by assuming 100% responsibility for everything.