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
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




Incentive Compensation for Contractors - Who Benefits?
How would you rank the beneficiaries of a great incentive program, including Field Craft Workers, Service Technicians, the Project Management team, Executives / Owners, your customers, vendors, or others?
Retirement Onboarding - 12 Questions
Sue Weiler-Doke and David Brown discuss “Retirement Onboarding” for construction contractors, starting with 12 key questions.
Strategy and Fighting the Fewest Battles
Strategic decisions along with the operating rhythms and the feedback mechanisms that ensure execution are the most highly leveraged decisions in the business.