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....

Best Methods for Presenting Changes During the Design-Development Phase
Always be conservative, forthright and provide a clear roadmap to successful project delivery. The biggest thing you want to avoid are changes during construction or delays. Both will impact the income projections and possibly project viability.
Evolving Focus with Growth and Leadership Levels
All contractors are built on the same foundation, which starts with the amazing crafts people. With growth in the business, project size, and your level of leadership, the time you allocate to different layers of the pyramid must evolve.
Effectively Leveraging Trainers, Coaches, and Mentors
Contracting is a high-risk sport and the training of yourself, your managers and your craft labor should be as rigorous as a professional sports team. We are facing a massive shortage of critical talent yet most spend very little on talent development.