The offsite and modular construction industry is experiencing a surge of new entrepreneurs bringing fresh ideas in design, housing, materials, manufacturing, and development. While these innovators often have a strong vision, many of them lack the industry-specific knowledge needed to bring their concepts to market. Recognizing this gap, they seek out advisers and consultants to guide them.
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There are indeed many seasoned consultants with years of success under their belts, offering valuable insights and practical advice. However, a new breed of advisers is emerging, drawn to the rapidly expanding offsite market. Unfortunately, this group can sometimes do more harm than good. While some may inadvertently derail a project, others are simply chasing the money that’s pouring into new factories from investors—looking to cash in without delivering meaningful help.
I call this group the “Bug Zappers.”
Just like the device that attracts flying insects with ultraviolet light only to electrocute them, these Bug Zappers lure in unsuspecting entrepreneurs with flashy promises. Once inside their grasp, entrepreneurs can find themselves “zapped” by high fees, empty advice, and ultimately, failure.
Here is my interview with Zap, a typical Bug Zapper consultant:
Gary Fleisher: “Zap,” thank you for agreeing to this interview. It seems like we’re seeing more and more people entering the offsite construction space with no real experience beyond a good idea. Some of these new entrepreneurs are desperate for advisers to help guide them, and that’s where people like you come in. Could you start by telling me how you attract entrepreneurs and get your foot in the door as a consultant?
Zap: Sure thing, Gary. My approach is simple: I paint a big picture of success. I talk about my past “achievements” — of course, I embellish here and there. I’ve “helped” dozens of companies raise millions, “guided” them to successful launches, and “advised” on industry-leading projects. Do I inflate those numbers? Absolutely. It’s all about looking like a winner. Entrepreneurs love winners. And at conferences or conventions, where they’re hungry for answers, I swoop in and dazzle them with these grand accomplishments. I make them feel like if they don’t sign on with me, they’re missing the ticket to the big leagues.
Gary Fleisher: Interesting. I’ve noticed that Bug Zappers—like yourself—often demand large upfront payments before doing much work. Why is that?
Zap: Ah, yes, the upfront payment. It’s a critical part of the process. You see, I tell them that a large payment shows commitment, that it’s an “investment” in their future success. In reality, it’s more about securing my bag early. I push hard for that money upfront because I know once things start to go south—and they will—I’m likely going to lose their trust. By then, I’ll have already cashed in, and the entrepreneur is stuck with me for the duration of the contract, or at least until they wise up and cut their losses. But I make sure the contract’s airtight enough to avoid any easy exits for them.
Gary Fleisher: Sounds like you’ve perfected a strategy. Let’s say things do go wrong, and the entrepreneur starts losing confidence in you. How do you protect yourself?
Zap: The key is to identify the weak links early—usually one or two board members or key players who are either too inexperienced or too eager to trust me. I work hard to win them over, make them believe I’m indispensable, so if things go wrong, they’ve got my back. If the CEO or the other executives start pointing fingers, those allies I’ve made on the board will vouch for me. They’ll defend me against being fired, or at least keep me on longer than I deserve. It’s all about creating divisions within the leadership. If they’re not unified in their decision-making, I’ve already won.
Gary Fleisher: That’s pretty calculating. But what about when you’re asked for real solutions? You know, when they expect you to actually do the job they’re paying you for. How do you handle that?
Zap: This one’s easy. Most of the time, entrepreneurs don’t know what they don’t know. I stay vague, throw in a lot of buzzwords—“synergy,” “scalability,” “disruption”—whatever’s hot at the time. I avoid diving too deep into technical issues or giving concrete solutions because that’s not my strength. My goal is to make them feel like I’m offering value without committing to anything specific. If they push for details, I deflect, promising to look into it or referring them to a colleague who conveniently won’t be available for weeks. By the time they realize I’m not giving real solutions, I’ve already moved on to isolating my allies and securing my position.
Gary Fleisher: One last thing I’ve noticed about Bug Zappers is that some of them try to go from adviser to a full-time, paid position within the company. Why is that?
Zap: Oh, that’s the dream! It’s all about securing a more permanent cash flow. Once I’ve convinced them of my worth—or at least confused them enough about their own abilities—I pitch the idea that I can help even more if I’m “on the inside.” That’s when I start hinting that I’d be more effective as a paid employee. If I pull it off, I get a salary on top of my consulting fees. If they don’t go for it, no harm done—I’m still getting my hefty consulting checks until they catch on that I’m not actually helping. But when the time comes that they’ve had enough, that’s when I stop returning calls and texts. By then, I’m already on the lookout for my next “client.”
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Gary Fleisher’s Thoughts on Avoiding a Bug Zapper:
As candid as Zap has been, it’s clear that entrepreneurs in the offsite construction industry need to be cautious when selecting advisers. Here are some signs you might be about to be Zapped and how to avoid it:
Signs You’re About to Be Zapped:
Exaggerated Accomplishments: If the consultant’s resume reads like they’ve single-handedly revolutionized the industry and you can’t verify any of their claims, be skeptical. Good consultants let their work speak for itself without needing to inflate their credentials.
Push for Large Upfront Payments: A consultant asking for a significant amount of money upfront is a red flag. Most legitimate consultants will have a reasonable retainer or fee structure tied to deliverables and progress, not one lump sum before the work has even started.
Isolation of Key People: If the consultant starts playing politics within your leadership team, singling out specific people for one-on-one meetings or trying to build private alliances, that’s a clear warning sign. Good consultants work with the entire team transparently.
Vague or Buzzword-Heavy Responses: When pressed for details, if your adviser can’t give clear, actionable answers and relies on general industry jargon, they likely don’t know what they’re doing. Be wary of anyone who constantly defers without offering real solutions.
Push for Full-Time Roles: If a consultant tries to transition from an adviser to a full-time employee too early in the process or without a clear value proposition, they’re likely more interested in securing a paycheck than in your company’s success.
Sudden Disappearance: Once things go wrong or the consultant realizes they’re in over their head, they may stop answering calls, texts, and emails. This is a classic Bug Zapper move—they’ve taken the money and run, leaving you with the mess.
How to Avoid Getting Zapped:
Check References Thoroughly: Don’t just take the consultant’s word for it—ask for references from past clients and follow up with them. Look for proven results and long-term relationships rather than just flashy success stories.
Pay Based on Deliverables: Structure payment terms around tangible milestones. This ensures that the consultant is motivated to deliver real value before receiving full payment.
Keep Communication Open and Transparent: Insist on regular updates and involve multiple members of your team in discussions. This prevents the consultant from manipulating individual board members or staff.
Demand Specifics: If a consultant can’t provide clear, specific answers to your questions, they’re likely not the expert they claim to be. Push for details and practical advice rather than buzzwords.
Retain Control of Hiring Decisions: Be wary of consultants who suggest hiring themselves full-time. If they’re doing a great job, their work will speak for itself, and you can always extend their contract if necessary. But don’t rush into making them a permanent fixture in your company without thoroughly evaluating their contributions.
Modcoach Note
As the offsite and modular construction industry continues to attract entrepreneurs with groundbreaking ideas, the need for skilled, trustworthy advisers has never been greater. However, the rise of opportunistic consultants, or “Bug Zappers,” poses a serious threat to the success of many new ventures. These consultants, drawn by the allure of fast money, can leave businesses floundering with bad advice, inflated costs, and unmet promises.
The best defense against being “zapped” is due diligence. Entrepreneurs must thoroughly vet potential consultants, verify their credentials, demand specifics, and avoid falling for the allure of exaggerated success stories. Look for advisers who prioritize your company’s long-term growth, not their own short-term gain.
In an industry full of potential and innovation, entrepreneurs should protect themselves from those who seek to profit without providing value. By staying vigilant, building a strong network, and partnering with genuinely experienced consultants, the visionaries in offsite construction can avoid the pitfalls and keep their dreams of transforming the industry on track..
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