Category Archives: Growth

Review of strategy is important for the growth of a construction company

We often consider planning to be one of the most important components towards the growth of a business but there is something that is equally important and that is reviewing those plans. It makes absolutely no sense to prepare a plan if we do not take care to review it. Things may go haywire and we will not even get to know about it as long as we do not sit to check the ground reality. This is why reviewing the plans is very crucial for the growth of any company. It becomes all the more important when one is take care of his construction business. This form of the business has too many ups and downs in it and one has to go through a lot of hardships to put everything in place. To set things right, a lot of people have to get involved in various sets of planning and knowing the nature of the business which is pretty dynamic and where anything can happen at any moment, one needs to make sure that he keeps on checking if the actual are in sync with the proposed plan and if not take corrective measures to set it right.

Involving all the head of departments for setting the plan:-

When you are building a plan, it is essential that you involve the heads of all the departments so that they can all give their inputs pertaining to the cause of the plan. You can have deep insights from them about how the department can perform and if there will be any requirement of additional workforce in the due span. You can rely on their advices and then go about framing the plan. In this way, they all will be aware of your goals and then it just will not be your goal but will become the goal of the company. It is not just you who will be working hard to realize the goals but your entire team will be with you.

Have a quarterly meeting with all of them to check the actual:-

Reviewing of plans should be conducted once in 3 months. This lets us know the real picture from the proposed one and what needs to be done to get things back on track if at all it is out of place. It also ensures that things do not completely out of hand which is possible if you take up the same meeting after a year. You will probably find that the damage has become irreparable and may have to start all over. That will be a sad part for the management also a question on your leadership quality.

Check area of opportunities and eliminate threats:-

It is only during the review that you get to know the possible threats that exist and can act as a big danger to the project. You can’t get to know the threats while you chalk out the plan. In the same way, while you start working on a plan you also come to know if there are any more opportunities that you can explore. Pick up all the opportunities and try and eliminate the threats.

Hard work and dedication is all needed for the growth of construction business

We generally believe that construction business is a highly profitable one and people who are associated with it know the secret of making quick money. Well as a matter of fact, first and foremost there is nothing like easy money. It may be quick money but one can’t guarantee how long does the quick money last but there is definitely no easy money. People belonging to whatever industry have to work hard all day to earn money and they do not want to emphasize that as neither quick nor easy money. Same goes with the men in the construction domain. Right from the person who owns a construction company to the one who work in that company, all of them have to go through rigorous hardship day in and day out to achieve success and the money that comes attached with the success.

There are basically 2 most important attributes that is required to form or to transform a small construction company to a giant organization and these attributes are something that we have been doing all our lives without knowing the importance of it. The first one is hard work and the second is dedication. As you spend more time in the construction business, you keep on learning new things that were completely unknown to you or is probably unknown to many in this domain. However, you get to know those things only if you are dedicated towards your business. One who gets knowledge is the one who seeks it. Therefore, you have to keep your dedication intact irrespective of whatever challenges comes up in your life. Difficulties are part of our daily life and they come and go often. If they start bothering you, it will be tough for you to take things ahead in life.

Dedicated towards your work will also keep you focused towards what you want to achieve in life. It has been often witnessed that people after having started their construction business plan to wrap it down in few years time. This happens because they have entered the sector thinking that life here is a bed of roses where challenges are rare to come. They can make good, easy and quick money and will still rich forever. Things are not what these men contemplate it to be. It is indeed absolutely contrary to their imagination and they fall flat on their face when they see the industry is giving them several blows without anytime to recuperate.

Dedication and hard work goes hand in hand. In fact, it is dedication that gives rise to hard work. You will not work hard on things that you are not dedicated to do. You will find the work monotonous and after some time you may lose interest from it. Stories of ace construction companies should be read to know the pain they have gone through to reach the place they are in. That will motivate you to work harder and extend your limits of persistence.

Use social media as a tool to augment your heavy equipment business

The construction and the heavy equipment industry are largely dependent upon new technology. The construction industry is always in the hunt of heavy equipment that can get the work done quickly and with utter precision. Now this is only possible if you upgrade your heavy equipment by adding new technology in it. This will bring in a new life to the machine and it will work with more vitality under tremendously rough situations. Now that was all about how technology can help get the work done at a faster pace. However, if we want to make use of technology to advertise our products and services so that it can reach to thousands of people at a given time, there is no better option than talking about your business in social networking websites. There you can reach to a large number of population without having to pay a penny for it.

There are many companies who are involved in the process of creating their business profiles in social networking websites like LinkedIn, Periscope, and Facebook etc. There find this to be an excellent tool to reach out to a sizable amount of people at one go. They have seen their business growing in this fashion and acquiring more clients from such networking websites.

There are few do’s and don’ts that one needs to follow while they set up their business profile in a social networking website.

Keep your personal and professional profiles separate:-

It is very crucial that you keep 2 accounts in one social networking website, one for your personal use and the other for your professional. If you are into selling of heavy equipment of all the brands, you can make use of your professional account to mention that there. Talk everything about your business in that account but pay special attention that you do not talk much about your business in your personal profile. If you share a couple of your business stories to any of your friend on the personal profile, it won’t be an issue but if you only keep on bragging about your success stories all the time on your personal account, your friends might get turned off by that. They definitely do not check your profile to know about the success in your life. They just simply want to know if things are ok with you.

Maintain strict professionalism on your business account:-

You should keep your business profile very professional. Social networking websites like LinkedIn are meant for professionals and businessmen who are looking to acquire clients and get businesses from them or to reach to the skilled masses and absorb them in their business. If you are an authorized dealer, you should be very stringent when it comes to professionalism.

Post a photo of your company:-

It makes ample of sense to post a picture of your company’s logo on your business profile. It help your prospective client to understand the kind of account you are holding and they will move into your business account to know more about your business and will not stray down to your personal account.

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Set up business models that can be achieved

Construction business may seem to be a rewarding one but in order to set your foot strong in this business; one has to go through enormous planning and determination to execute them with precision. Firstly it is very important for them to establish a sound business plan and once that is in place follow the plan stringently so that you can achieve things in a phased manner. Now having a construction company, you have entered a dynamic industry which has no set rules of its own. Things that are found to be merrier now may turn into something drastic and therefore just having one set of plan with no flexibility can only harm your growth prospect. Therefore it is crucial that you analyze things, try to foresee them and be ready to revamp your strategy when the need arises or else you may find yourself in an unwanted and complicated zone.

Take baby steps in the beginning:-

If you have just started your construction company, avoid taking big leaps as there are chances that you may hurt yourself in this process. Dreaming big is not a problem but giving not much time to fulfill those dreams could be harmful and dangerous for the prospect of your company. So during the initial phase, you take small steps towards achieving your goals and once you start seeing things working out for you, you may then speed it up a bit. However, do not be in a hurry. Have patience and give some time for your business to grow. It takes a lot of time to form a concrete construction company. During this while you should enjoy your work and learn from it.

Your strategies should be realistic:-

When you are setting up strategies for your company, make sure that they are realistic and achievable. Strategies should always be formed keeping into consideration your business goals and the time by which you want them to be fulfilled. Keeping unrealistic goals can have drastic impact on the financial health of the company as well as on the morale of the employees. It is prudent that you consider all the facts well before you frame business plans.

Review your plans at regular intervals:-

Plans once framed should be reviewed at regular intervals. You should give a gap of 3 or 6 months and then review the ground figure. Take into account all the people from the senior management and review your plans with them. Give clear instructions on how you want the review to be. Reviews that are simple can be better understood by everyone. If you find one particular department not being able to perform up to its merit, you go to handle the situation delicately rather than exerting pressure on the team. First and foremost, try to evaluate the reason of underperformance and once you have earthed that check if they need any help from you to get it fixed. You should be ready to provide any assistance to improve your team’s performance. Once these things are taken care of, rest all will fall in place.

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How to become a successful construction business owner

Many people who own a construction business wonder how someone can establish such a huge construction empire in this lifetime. For them it took years to get stabilized and there are few men who simply got success in every decision they took, in every sphere they moved. It looked all so easy for them as if they did not have to go through any hardships, any trouble or any challenge in setting up their business empire.

From the outset, we may see that they have got everything so easily but if we look into the depth of the matter, we will find lot many sacrifices that were made to reach the place that they are in. Life is never a bed of roses for anybody and all have to go through some amount of hardships to gain a place in their life. It is just that how they take things. If they are positive in life things are bound to go well but if they are pessimist and crib on every little thing, they will have a hard time in dealing with realities.

There are few very basic yet important things that you need to follow to taste success in this form of business.

Believe in yourself:-

You will get a lot of people who may not find your decision making ability to be appropriate and may feel that this will not work under the current situation. But if you feel it is worth taking the risk, go ahead and take it. You know yourself better than anybody else does. However, before you take a decision, take your stakeholder into confidence. There will be always 2 outcome of your decision. Either you will hit the bull’s eye or it will backfire. You got to be ready for both accolades as well as criticism. The crux of the matter is that you have given it a shot and that is important.

Keep yourself open for suggestions:-

A construction business owner should keep his minds open for any suggestions that he receives from business experts. The business decisions should be on the basis of these suggestions. The business experts understand the market better than the one who operates the business. They do round the clock analysis and then come down to a conclusion. They may not be able to estimate the future quite precisely but may remain close to what we call precise.

Set up good rapport with your clients and stakeholders:-

Getting more business fairly depends on the kind of relationship you have with your clients and stakeholders. Setting up good rapport with them can go a long way in getting more businesses from them. Delivering work on time, being honest with them may sound very basic but it matters a lot in times where people take any mode to please others. Standing tall on your ethics does matter a lot in establishing confidence in the hearts of your clients. Giving quality work also plays a significant role in generating strong rapport with the clients.

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Acquiring a construction business is always a viable option

When you are looking to expand your business, the most viable option that you have in your hand is to buy someone else’s business and manage his clients. This helps you to get some readymade clients, resources and all the other necessary equipment that are required in this industry. But the hard part is to get a company that is ready to sell its stake to you. No one will ever want to sell a business that is making profits. It just does not make any sense to him to give it off to someone else so that he can make money on your hard work. Simultaneously, you will not be interested in taking companies that are running into losses. They may turn out to be a liability on your company.

Moreover, you have to spend more of your time focusing on the sick unit and getting it back from the scratch. It is sometimes not worth of your time and energy and to a larger extent your hard money earned. So how can one get hold of a company who wants to sell their business to a bigger company is something that we will talk in detail.

Talking about the construction industry, acquisition does happen in this industry and also at a slightly higher rate as compared to other industries. Here you will come across many contractors who have tried their luck but due to market fallouts are unable to sustain. Such small scaled companies may not be called as sick units as they are just out of business and not that they are incompetent workers. They can bounce back anytime and can take it from there. So if ever you get the opportunity to buy such a company that is run by a contractor who is now not willing to continue the business, you can pay him the amount and acquire his business. It means that you are now the owner of his resources and you decide the salary of the employees of his company.

In case of acquisition of a construction business, you not only get the resources at a lower price but also get experienced and competent workforce which can be utilized in different jobsites. You may wish to pay them a bit more so that they can be content with how things are moving. Remember, if you hire new workforce from out, you have pay them more for their services but in case of acquisition, you play safe and do not have to increase the package of the existing workforce.

You can get hold of a broker who has news about small sized construction companies and contractors. They will check and let you know if anyone is looking for selling their unit. You also need to do your homework well. Check the reason why the company is ready to sell its stakes. Is it because they can no longer afford the operational expenses or they have some other reason that you should know before you go for the deal. Check the history of the company before you finalize anything and only if you see no hurdle that you should be signing on the dotted line.

Growth of the construction industry is co-related to the economic prosperity of a country

The growth of any business is directly related to the amount of effort one puts in his business to make it big. However, it is also co-related to the economy of the country. If the economy is sluggish, you can’t really expect much from the business, no matter how hard you work to develop it. You have to wait for the economy to gather some speed so that things work for you and you start doing well. It has also been witnessed that the economy is doing great. However, it is just few specific industries that are not performing due to certain policies of the governing body. This also plays a vital role when it comes to the development of the business. If you are also a part of the industry that is affected by the policies of the governing body then it may cause harm to your business as well. You may suffer hardships till the time the policies are not amended for the betterment of the industry.

Things are quite similar when it comes down to the construction industry. This industry does really well and favors everybody who is associated with it when the policies are favoring it or when the economy in a whole is doing well. But when we check the flip side of the coin where the policies are against the construction industry or the economy is in a pathetic state, the same industry that was booming and was favoring a whole lot of people can turn upside down for everybody. This however does not imply that one should shut shops when the industry is not doing well. It is also not practically possible to close the construction business at the time when things are not going your way and to pick it up from where you left when things are back in shape.

The recommended option would be to go slow when the tide is against and ask the investors to hold on with their investments for some years (if you are associated with constructing condos). You can also take up small works/projects that come your way. When things are not working out for you, it is better that you stick to projects that do not have a good profit margin. That will at least help you to keep the company floating and you may not have to look for any cost cutting measures.

Just in case, you fall in the category where you are unable to get any business neither big nor small, it is prudent that you cut short on your costs by either renting your heavy equipment or if you feel necessary then selling the one off that you feel you may not need them any longer. If things does not become any better after taking these measures, then the last resort to keep your company floating would be to sack employees who are not so experienced but still have a good package. That will help a bit to cut down the cost and you can expect things to move on for few more months.