Issue 9 of 9: Low Barriers to Entry

Construction Ownership Transition Issue 9 of 9: There are Few Barriers to Entry for New Contractors.

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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....

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....

Talent Alignment & Integration: Four Basic Layers
Talent must be aligned around four basic layers for contractors to achieve results. Integration of talent from the customer through to compensation creates optimum results for all parties over the long-term.
Roles of Investment Bankers and Business Brokers
Investment bankers can play a critical role, especially if the exit strategy is selling to a strategic buyer or merger with another contractor.
Field Productivity - Talent Differentiation
Contractors can improve their field productivity significantly just through deliberate talent management processes. While the process of continuous forced differentiation seems harsh it is actually the kindest thing you can do for everyone on the team.