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.

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....

Previous Next Go To Series

Related Insights Series

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....

Previous Next Go To Series

Related Insights Series

Mental Models and Building Strong Businesses

The best builders develop a complex 5D mental model of the project, keeping it constantly updated. Through thousands of interactions with hundreds of people over years they “nudge” the project from concept through construction completion.

Impacted Productivity - Highly variable Labor Scheduling (Level Your Schedule)

The biggest risk for a specialty contractor is the performance of on-site labor. One of the biggest impacts to labor productivity is having a schedule that requires large variations in labor.

change management claims estimating field productivity

Cash Flow Tip 12 - Rapid Close-Out = Good Cash Flow

If you effectively manage the startup and the close-out of the project, then the execution in-between mostly takes care of itself.