Sundt and Growth of Wealth

One of the most common and dangerous misconceptions we hear about ownership in a construction company is that it’s all about perks owners get.

D. Brown Management Profile Picture
D. Brown Management
January 3, 2019 2 minute read
Share

Perk (/pərk/) noun:  Abbreviation of perquisite - money, goods, or other benefit to which one is ENTITLED as an employee or as a SHAREHOLDER of a company.

Succession: Investing in a Construction Business. Book: Level Headed, Inside the Walls of One of the Greatest Turnaround Stories of the 21st Century by J. Doug Pruitt and Richard Condit.
  • What kind of vehicle can I get?
  • What kind of expenses can I get reimbursed?
  • What memberships can I get paid for?
  • What travel and entertainment can I get as benefits?
  • How much time can I take off?
  • How big will my office be?  

If these are the questions that come up, they are 100% the wrong level of questions.  

The biggest “perk” to being an owner of a construction company is the opportunity for your money get a 20-35% annual rate of return versus the 8% or so that the market provides.  

Owners who are focused on exploiting that single “perk,” viewing it more as a privilege, are the ones who will truly outperform in the long run.

Sundt is a great example of this alignment

Cash Flow Tip 17 - Cascading Reporting Systems
Developing rigorous weekly Operating Rhythms in your business will help everything run smoother just like they do at the project level.
Related Article
My Talent Promise - To Everyone
Talent is the biggest constraint that most contractors will face over the next decade. Every manager needs to get exceptionally clear on the promises they will make to those around them.
Related Article
Succession Fact #2: Desire & Competencies in the Management Team
Succession Fact #2: No exit strategy or deal structure will create desire, alignment, and competencies in the management team. With that said, it is incredibly important that the exit strategy and structure of the deal maintains and enhances the team.
Related Article