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

Learning, Doing and Teaching

Growth in life, career, and business is about a continual cycle of learning, doing, and teaching.

Executive Briefing - Understanding Industry Trends

The construction industry is changing at an unprecedented rate. The challenges for contractors are compounded by the shortage of talent at all levels, including craft, management, and technical experts.

Be Specific About Problems

The business of construction is filled with constant problems. It’s not that great contractors don’t have problems, it's that great contractors have learned how to troubleshoot first, which allows them to learn from their problems faster.