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....

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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 5 of 9: Cash Generation

Construction Ownership Transition Issue 5 of 9: Does the Business Generate Enough Free Cash Flow to Make the Transition Equitable for All Parties? Review examples and play "what-if" based on your business.

Cash Flow Tip 9 - The Project Schedule and Cash Flow

The smoother the project schedule is, the smoother your cash flow will be. Large variations in the resource loading across a project’s duration impact cash and productivity.

PICK SMART Improvements

Contractors will never have enough resources to solve all problems or take advantage of every opportunity they face. There are a couple tools that can be used to align the team around the best utilization of resources: