Tag Archives: Construction Business

Plan your budget for a new project

When you are a part of an industry and are doing well, you are tend to get more work. It is probably you have created a reputation over the years that now people believe in you and therefore give more business to you. So whenever you are given a new task, you need to plan few things in advance. Do you have the required human resource to get the work done in time? Is your financial reserve sound enough to take care of any additional requirements that will come out from a new business and many more of such questions should be answered first. These are tough questions for any business and the answers can’t come out of one’s head swiftly. There will be a lot of pondering that needs to be done when there is a chance of getting some new projects.

Moving our focus towards the construction segment, a business owner has to go through the same set of questions but for him the answers are far more difficult as compared to any other person belonging to some different industry.

Basically he needs to plan his budget bit differently than people from other sectors do. He even has to estimate the estimates. Now this is really difficult and can be confusing to many. When we talk about estimating the estimate, it means that the owner of a construction company have to estimate some rough estimates of the cost to the company. For instance, he estimates the cost of raw materials may increase and if it increases then what could be the price. So what is the highest point can he take his estimation is estimating the estimate. So in the above example, he is already estimating that the price of the raw material will increase and then he is further estimating the highest point that it may reach. Similarly, he can have estimation on anything that concerns his business. These estimations are crucial as it takes you closer to the actual.

Once you have made a rough estimation, the next step is to align it well with your budget. You may know your financial position much better than anybody else and therefore preparing a budget based on the estimations will be highly fruitful. It will take you closer to your goal and slowly and steadily you will start seeing things getting more realistic. It is only because of your in-depth planning that you can come so close to the realistic figures. They may not be accurate but certainly will be well-defined.

After you match up your financial position to the market estimate, you get to understand if entering into a new venture is anyway going to be profitable to you. Getting it discussed with your team is a healthy way to move forward and you might come across some really valuable suggestions from your team members. Taking advices from the seniors of your company will help you take precise decisions. So by planning your budget for a new project, you understand if you should put your hands into it or postpone it for some time.

Team work matters most in the construction business

Dreaming big is a good thing but when you want to make your dreams come true you have to follow some very basic principles that will help you reach the place you want to go. The most important principle that you can’t afford to miss is to learn to work in a team. You may be the owner of your business but you should give equal importance to all the members of your company. You should know the importance of your team and how they function and you can know this only when you become a part of them. Working in a team and working as a team are both important factors that one should learn well if you want to take his business to the next level and especially when you are part of a much volatile industry like construction. Construction industry will give you no scope to survive or grow if you do not want to work as a team. Individual players have absolutely no role in this segment of business. They might stay for some time but will not be able to carry it along for long and will see problems erupting which he will find it difficult to manage it alone.

Though this sector is an alluring one and promises to give good returns if you are ready to work hard but just working hard will not take you to the top. You have to also take into account factors like working in a team.

You know where the business is going:-

When you are working alone and try to manage everything on your own, there are high chances that you may miss out on many things. It is never simple to manage a business alone and you need people to whom you will distribute your work so that they can take care of their part and you can take a report from them and understand where the business is heading. This is how it is supposed to work. You doing the work alone will take you nowhere as you will not have the slightest idea what exactly is going on. You will have no one to prepare reports for you and in case you have a department who does this thing, it is crucial that you maintain good rapport with them. In other words, have good team bonding with them which will also help them to work comfortably.

Team work makes things simple:-

In a big construction company, they have many different levels of departments and if there is sync between each department then things become simpler. The progress of work can be understood more clearly. This will also help you to move forward in your business and clear your paths for any possible expansion in the near future. You can have a bird view on the performance of your business if there is proper team work. The level of co-ordination amongst all the teams will define how successful you can become with your business.

Know the intricacies of the construction business

The construction business is one of the most popular and profitable businesses in the current scenario. People choose the real estate business for investments and also everyone desires to have a property of his or her own. Hence, if you too are looking for a business that will fetch you great profits within a very short span, the construction business is the right one for you.

But, before you start the construction business, it is a must that you know about the intricacies of the construction business. With proper details, you will be able to establish your business fast and will also be able to enjoy the profits soon.

  • Get the finances:

 

The first thing that you need to start or establish a business is finance. Without finances, you will never be able to start any business. However, the construction business is one of those businesses that require huge amount of start-up capital.

For that you need to chalk out a business plan that will help you to fetch bank loans. The plan must clearly state how many employees you are going to have, your target market and how you plan to achieve the target. The initial cost and the potential profit that you will earn from it must be clearly mentioned in the plan. If you do not know how to right a good business plan, hire a skilled professional, who knows how to write business plans for a construction business.

  • Tools and heavy construction equipment:

 

One of the very important intricate factors associated with construction business is the expense of tools, heavy construction equipment and machineries. If you can afford, you can buy them. You will certainly get the brand new equipment as well as the old equipment. There are many dealers, who deal in the new and old construction equipment and will easily find one for you. You can also rent the equipment, tools and machineries for your projects initially, if you do not want to engage a lump sum amount of money in buying them.

  • Setup the business office:

 

The construction business demands a physical office, where all the employees, the clients and the customers can come in to deal. You must also keep in mind that along with the office building, you need a parking space for the construction equipment, machineries and tools.

  • Licensed and insured:

 

If you want to be fair and gain acknowledgement within a short span of time, having your business licensed and insured is a must. This will give the customers the assurance and guarantee that your company is there to stay. Certainly this will have an impact on the prices of your projects, increasing the profit margin.

  • Safety plans for the employees:

 

Since the construction business works onsite and there are numerous workers, who will be working on the many construction projects, their safety plans and occupational health plans is your responsibility. You must offer them to the employees, so that they are happy working with you and do not bring your business to a standstill under any circumstances.

Owning a construction business – Promote it on Social Media

It is somewhat difficult to promote a construction business if you do not have a goodwill that supports to name of the company. This form of the business is so big and widely spread that it may take ages for you to set up an identity of your own. You not only got to work really hard but also equally smart in order to make a mark in this industry. So when we talk about smart work, the smartest will be to find an easier way to communicate to the mass about your business and in this process get some work and recognition from people. You can make use of a very powerful tool that will help you connect to many people at a given point in time. The people with whom you are getting connected to may or may not know you but irrespective of that you can put your word across to the mass. You can make use of Social Media.

It has been witnessed that almost every company across any industry has their website where they can post about their information. Similarly, they are fast approaching the concept of having an account in a Social Media forum so that people can go there and check the reviews left by others. Many from the construction business have also taken the same approach. In order to promote their business, they open an account in a Social Media website and from there they post messages about their business, their achievements and the activities they conduct so that people who might require their service are aware of them and can contact them when required.

Almost every internet savvy person today has an account in some or the other Social Media website. They do this so that they can stay in close contact with their friends and loved ones. Off late, it has been seen that people who have their businesses have started promoting them on these websites. However, they prefer to keep it official and do not post pictures that are casual. Likewise, when you are creating an account for your construction business, do not post any casual pictures of you hanging around with your pals. Try to keep it as much professional as you can. Post pictures that are linked with your jobsite. Pictures like heavy equipment working on the site, engineers talking with the laborers explaining what needs to be done and stuff.

Mentioning a bit about your achievements on the Social Media website also helps a lot. There are job seekers and job givers both available on the Social Media website and if any of the job giver finds the quality of your work in compatible to his requirements, he may give you an assignment to work on. You can also customize your account to make it look attractive. There are loads of options available that you can opt to make it work. Many have found this to be a great tool to promote their business and when it comes to construction, it can’t get better than this.

 

Maintain your focus throughout your journey in the construction business

We must have seen many individuals making it big in their business but at the same time have also heard stories about few who dreamt of owning an empire but could not do much. There are also numerous stories where people have flunked in their business after having spent considerable number of years in it. It definitely feels sad hearing to nostalgic events but it is more important to gather lessons that life has taught them. We can also learn about those mistakes which they have committed and that we should not be doing when we are pursuing our dream to set up a business empire. One of the most crucial things that every business owner needs to have is being focused with what they are doing. They need to understand that they will come across too many distractions and they have to overcome those distractions by remaining focused to their job. If they are connected to an industry that is volatile and can take any turn, they got to be careful for every step that they take.

One such industry that is quite unpredictable and needs a lot of focus to remain afloat is the construction domain. If you are a new startup company and are struggling hard to remain intact in the market there is a higher chance that you may lose your focus and get diverted to things that are important to you but not at the moment. Construction industry has its phase and like every other industry which has good as well as bad phase, it too has its share with the good and bad phases. So you got to understand how to duck the bad phase and score during the good times. How to do this can be better learnt by remaining focused to your work. When you are attentive, you sort of mark down the mistakes that you did and avoid doing them again. This is what many skip to do.

In the construction world, you will come with new challenges every other day and these new challenges are nothing but mere distractions. You got to learn to manage them and come out with a solution without losing your focus. If you lose it then you get diverted in dealing those challenges and get so messed up that you eventually think of doing away with the business. Though it is a fact that you have to deal with all the business challenge alone but that does not mean that you will get strayed away from your core objective. That is the crux that you need to learn.

Negativity is another big challenge that can let you down quite easily. While you are new to the business, you will come across many people who will advice you negatively. People may say that the initiative that you have taken will not work and will come up with number of reasons why it will not. You will hardly come across anyone who will support you for your efforts. It is this moment where you being focused come to play. You should be confident about the initiatives but also not give others a deaf ear. Go ahead with things that you are confident and there are many examples of people who have proves other wrong by believing in themselves.

Marketing your construction business on a small budget

To survive in any form of an industry one needs to know to market his product well. It is absolutely important for a new set up to create his brand value in the market and that can be done only through ways of proper marketing. In order to market your brand you need to do some amount of spending. No marketing can be for free. You got to shell some amount of money behind the purpose and at times people spend a good chunk on it. But not every company can afford to spend a lot of money on marketing and therefore they have to fix a budget for that. There has to be a systematic planning to market your brand which also talks about how constructively you can set a cap on the marketing expenditure. It simply means that you can’t over budget your marketing expenses and if at all you got to do so then there should be a separate contingent plan available.

Construction business in particular has to be very cautious when it comes to marketing. You never know when the overall expenses reach the tilt and you gasp for more money. Therefore it is imperative for a construction business owner to frame a plan to market his business on a tight small budget. It may be a difficult task to market the construction business on a small budget but definitely not an impossible task. There are few ways and means that one can adopt if they want to market the business on a relatively small budget.

Promote your business online:-

Make a website of your own. Every company irrespective of whatever industry they belong to does have a website of their company. This is where the put all the information about their company and mentions the recent launches. Now what you need to do is try to make your website as attractive as you can but remember that it should not look awkward that people find it to be funny. Try to keep the professionalism of your company in place while you are designing your website. You got to mention about the existing projects and the one that is up your sleeves. You can also talk about the projects that you have completed and also the kind of projects that you work on. It is evident that not all construction houses take up any project that they get. They have their expertise and prefer to work in that domain.

Market it in social media:-

Social media has given you the option to market anything to a relatively larger section of the population and that too at a much lesser cost. You do not have to shell perhaps anything to reach out to people. All they need to do is like your website and all their friends can also get to see you. You have plenty of social media websites where you can promote your business by paying a meager sum of money.

Don’t let contractors put lien on your construction property

If you are thinking to not pay your contractors for their job for whatever reason, you should think twice about it. You may find their work to be of poor quality but when you see the progress of the construction, you can let the contractors know that you do not like their work and they need to focus more on the quality part. Just not paying them their dues can drive you into serious problems. The contractor can place a lien on the construction property and can make the entire thing quite messy for you. It is better to counter them upfront and tell them you do not like their work rather than not paying them their dues.

Let us first understand what a lien on a property is all about. Having first lien on a property means that it completely belongs to you and in case if you want to sell it off and go back home with all the cash you are free to do so. Now if someone puts a lien on your property, it means that if you sell the place you can’t get away with the entire cash amount. You have to first clear the dues of the person/entity that has put the lien on your property and then whatever is left belongs to you. It eventually means that you do not have the absolute right on the property.

This is perhaps just the tip of the iceberg. You may be further entangled with more such complications that will act as a big distraction in your business. Your credit rating goes for a toss. You are also not able to refinance the property with any financial institution. This means that you can’t even keep this place as LAP (Loan Against Property). Moreover, when you are letting you the construction work to a contractor and if he sub-lets it to another contractor, you need to ensure that the contractor pays all the dues to the sub contractor or else that particular person will place a lien on your property. It simply means that whosoever person who has any interest in your property can place a lien on it if their dues are not paid.

In case you come across a contractor who does not carry a good record and you unfortunately give the work to him. In this case, you got to be absolutely sure that you keep records of your payments to him. Such people can create nuisance even after they have received all their dues. In case you are clean, you hire an attorney who will take such guys to task. But before you hire any contractor, it is important that you do a research on their conduct. You can check things like how long they are into this business and how their relations have been with other construction companies. You can check with people in your business circles and hire someone who will not unnecessarily put liens on the property to create problems for you.

 

When you are a part of the construction industry always have a role model

When life gets tougher you seek for an inspiration and in case you have a role model in life it becomes easy for you to come out of that difficult situation and face the challenge with open heart. When you are part of the construction industry, you will time and again come across situations that you will find to be quite challenging and there will be numerous occasions when you will feel like giving it up. In situations like these, it is important that you seek help of the person whom you believe to be your role model. A role model can be a person either living or dead and therefore you may not necessarily get to speak to him in time of distress. But you can certainly read up his works and get inspired to know what sort of challenges he has faced during his times which may be tougher than yours and perhaps then you will get some courage to deal with things.

Female works can be exceptional role models as they have to go through a lot than men do. They have a family to take care of and they can’t shrug off their responsibility by saying that they have too much of work in office. So women who have successfully managed to tackle both the fronts have turned out to be better role models and the world look at them with respect and honor.

If the role model is in your reach, it benefits you more than anything else can. Ideally, we have role models who are well established and it may not be easy to reach to them every time we need their help. However, if you idolize a person for his hard work and the person work right in your office then it becomes simple to approach him anytime when you feel like talking to him. For most people, their parents are their role models and if your father or mother is from this industry then you always have them for a short discussion. You can sit with them and talk about the issues you are experiencing and they will show you some way that might be the best for you. You will never find yourself short of good people around you. It is just you got to be equally good to everybody around you.

There are few people who adore men belonging to an industry different from the construction. You need not have your role model from the area of your business but can have from any profession and from any walk of life. Every person has a story that can inspire you and the guy from the construction industry frequently find the needs of such stories as they are often haunted by difficult times. It is these stories and the lives of such people that help them in rough times and show them the way to get over it.

 

Mid-sized heavy equipment are highly beneficial in the construction business

The heavy equipment industry includes machines such as the backhoe, crane, wheel loader, grader, forklift, bulldozer, tractor pulled scrapers and excavators. These are the workhorses of any construction industry and they make the job easy and quicker. Due to the increased competition these are offered as superior products to the users in construction industry. They are embedded with new technologies for increased safety, comfort, and reliability.

This equipment is available in various sizes as mini, midi and large. Depending on the nature and type of construction work, suitable size is chosen by the commercial user. Selection of right type and size of equipment affects the time and effort and productivity of the project. Hence, on site managers and construction workers must be familiar with features of each equipment.

Some of the factors that affect the selection of an equipment

  • Size of a job: the larger the job requires large equipment.
  • Job to be completed in less time: requires mini or midi sized equipment.
  • Space constraints: less space can allow only mini or medium sized equipment to operate
  • Speed of the machine: smaller the machine it can move faster.
  • Soil, weather and temperature conditions affect the operation of equipment.

 

Today a great amount of construction activity is confined to small places. For such construction activity medium sized equipment are used. Also they are many medium sized construction firms which prefer mid-sized heavy equipment. They are less expensive, quick to move in less space, have better fuel efficiency and not very high on maintenance costs. The operators can operate these machines with less difficulty as compared to the large sized machines. This enables to complete work quickly by meeting the deadlines. Thus medium sized equipment are highly beneficial.

 

Although this being the case one should choose appropriate size of heavy equipment depending on the nature of work.

Blowing your own trumpet is essential in construction business

In order to become a successful businessman, it is quite essential that people know about you and the business that you are into. Also it is important for others to know about the nature of your business. For instance, if you own a bar or a joint that provides nutritious food or anything that involves your dealings with the end user, it is important for you that others know you well and also that you have a good reputation in the market. So when people talk about you they talk mostly good. This is perhaps the most important ingredient that is required to sustain in the service industry. Construction business to a larger extent is connected to the end user and in order to grow the business in your area or in your city, it is quite instrumental that you blow your own trumpet so that people know about you and the kind of work that you are into. Your success in the business becomes your portfolio and so are the existing projects that you have under your belt.

When we talk about blowing your own trumpet we specifically mean that you market your business more aggressively than never before. Reach out to as many people as you can and talk to them about your success story. However, do not ever try to blow things out of proportion or you will get caught. You have to speak what is true. The only difference will be that you will be more vocal than before and mention about all the feathers on your cap to the person with whom you expect some business to come. If needed hire ace marketing guys who knows about the industry and let them do the talking business. You have to get the stuff ready for them so that they can do the talking and get business for you.

You can get guys who are simply exceptional when it comes to market things. They are basically freelancers who do not work on one particular company and can work for any company at a given point of time. All they need is some material and facts to speak on. So when you give them some solid facts and figures that your company has been able to achieve, it becomes simple for them to go and perform. Right from cold calling to fixing an appointment and then meeting the person and turning him into your client, they will get everything done for you. You probably have to go for final meetings as you are the face of the company and people will be ultimately dealing with you.

Social media is one more way to spread the word at a shorter time to a larger crowd. Many construction companies are using Facebook as a tool to promote their business. They also have accounts in other social media websites that are meant for professional use. Here they mention almost everything about their company, right from the inception to the values and the projects that they work on. Many have found them to be quite useful to promote their business and take it to the next level.