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.  


Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Production Tracking - Building Talent Faster
In 2018 a contractor’s primary growth constraint is available talent. At the craft and field supervision level there are plenty of people available; the constraint is about attracting them to the industry and training them.
Benchmarking and Averages
As the leader of a contracting business, you must be constantly focused on the basic scoreboard metrics of customer satisfaction, profitability, and cash flow. What’s a good number? What are others doing?
Building an Effective Preconstruction Team
Your precon team is your company from the perspective of the project owner. Put your best foot forward by selecting the right people in the right roles at the right stage of the project.