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.

This Series (24 of 45)

Issue 7 of 9: Growth Strategy Issue 8 of 9: Industry Trends Issue 9 of 9: Low Barriers to Entry The Basic Math of Ownership Transitions Valuing a Construction Business

This Series (24 of 45)

Issue 7 of 9: Growth Strategy Issue 8 of 9: Industry Trends Issue 9 of 9: Low Barriers to Entry The Basic Math of Ownership Transitions Valuing a Construction Business

Leadership and Management of Details

Building a great contracting business requires the right balance of leadership and management. While it is possible to separate them the truth is that many of the top leaders are relentlessly disciplined managers.

The Leadership Vibrancy Curve

Leaders must navigate (1) the stages of contractor growth, (2) the phases of management team development, and (3) the arc of their own career and life. Maintaining the right levels of leadership vibrancy leads to sustainable scaling and succession.

Thriving with a Difficult Manager

In the ideal situation, everyone would have a great manager - both internally and externally. In the real world, we will all have to work for someone we consider a difficult manager. Learn to thrive in these situations.