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.
Any company in order to survive and simultaneously grow in a competitive environment has to show a lot of metal. They need to be consistent in one thing and that is maintaining the quality of the end product. As long as they are able to maintain the quality of their products they exist in the competitive market and once they start compromising on the sole factor that is responsible for their growth they will soon see a fall in their sales. At the same time people who have been using their products for a long time will want to see something new. May be an add-on feature at the same cost but if they see a decline in the quality of the product they will for sure give a second thought to go for the same brand ever in their life. This huge can be the impact of the quality of a product.
In the construction industry too quality plays a crucial role in its overall growth. Construction industry like any other industry is as competitive as it can be and therefore it becomes all the more important for a construction company to give significance to the quality part. Now in order for the final product to be an ace product it is significant that the raw materials used to manufacture the end product is also of ace quality. You can’t expect the end product to be exceptional by using deteriorated quality of raw materials. This is where the quality of raw materials plays such an important role in the overall making of a wonderful product. So the company has to pay special attention to the fact that the raw materials used for construction are of first rate quality and they will be for sure applauded for their wonderful work.
Hire expert people:-
You should be hiring people who have expert knowledge in recognizing the quality of the raw material. Raw materials which are superior in quality are quite expensive. So the call is yours which one you would want to go with. However, it will be crucial to have people who know about the quality of raw materials and can give their expert opinion of the subject. There are chances that you might get cheated by the raw material vendor who supplies the stuff to you. The subject experts can analyze the quality of the stuff and can guide you if the quotation laid by the vendor is reasonable or not.
Buy government approved raw materials:-
Hiring experts can prove to be quite expensive and if you are unable to afford them then the next best available option for you is to buy government approved raw materials. Government gives grades to the raw materials and on the basis of it the price of the item is fixed. So you need to know which item can cost how much. This small part of research needs to be done by you to buy raw materials of superior quality.
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.
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.
To know a language that is not your first language and able to speak, read and understand the language fluently is a great skill. Not many in the United States can speak more than one language. It is perhaps we are brought in a way where we have heard and taught only English. There are few institutions that teach languages spoken by people of other countries and it is always going to be beneficial for you if you are able to learn it well.
America is a country where people from various countries have come in and are living with a feeling of togetherness. They contribute big time to our society and also bring more businesses from their countries. In a situation like this, it will be handy if an American can speak their language. This will certainly impress the client and there will be not much gap in communicating with the counterpart.
Construction industry is one such industry where you got to deal with clients from several countries. You do not want to miss the opportunity of a business getting clicked just because you can’t communicate with the other person in their language. Remember not everybody around the world is fluent in English and they prefer talking to someone who knows their language.
The construction industry in US gets lot of investment deals from the Chinese and Japanese. You will not find many people from these two countries to speak in English. If you have a delegation of around 10 people, you will hardly find 2 who can fluently communicate in English. Rest will depend of those 2 guys who will later explain the conversation to them. This is perhaps not the way how businesses are conducted in a construction industry and therefore it is high time that the construction companies go bilingual.
Construction companies will not want the labor to be bilingual as they do not have the need to communicate with people from other nations. However, the guys in the Admin or at the reception should have a fair understanding on languages spoken in Europe. You should also hire guys who can speak the language of the country that your client belongs from. We have a lot of people in US who speaks Spanish and Chinese and there are also many offices who hires receptionist who can effectively communicate in these languages. This should be also followed by the construction companies. The marketing team should have people who can speak multiple languages at the same time. It is always a plus point to know as many languages as one can.
Few big construction companies have already gone bilingual. They have started to hire staff who can speak more than one language. They have realized the importance of being bilingual. Being able to speak the language of the client they already get half way through the deal. The rest they have to generate the confidence amongst the client that they have the ability to complete the work on time.
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.
Construction is a multifaceted industry and a risky business. It requires huge financial investments, which get returned as profits much later. Thus, it is an expensive business which offers delayed benefits. The construction project cannot proceed without adequate finances. Hence, the owner of construction facilities must obtain reliable capital resources to finance costs of construction. The owner does not just work on one project but numerous projects which are all financed together. In addition, there are other problems such as budget overruns, unreliable contractors and delays. If the owner is unable to cover costs, the capital investors face financial problems.
However with a pragmatic approach, owner of construction industry can build finances (achieve profits) in less time. Some of the guidelines for the same are as follows:
- The owner should be aware of the amount of work to be undertaken. Further obtain knowledge of the technical skills required which will enable to calculate the correct cost of construction project. Thus he should define goals and set expectations. Emphasis have to be on long term planning. Setting expectations enhances confidence of both clients and employee’s in the owner.
- Generally it costs less during planning and designing of the project but involves substantial expenses during construction. Instead of giving importance to sales, and getting deals, owner should develop understanding of the financial aspects and costs involved in the construction project. They can also hire appropriate project managers and financial consultants to understand the actual costs incurred by a project.
- Estimate the true profit by considering overhead costs, risks and job costs.
- Managing the job production to achieve profits: the job should be done in the cost-effective manner to make profits. Changing daily orders of operation and determining the productivity of labour force. When the work to be completed in 2 days, takes 6 days, it incurs additional costs. Thus jobs should get delayed.
- Accounting for profit by employing a project manager who keeps track of the budget and purchase orders. He has accurate knowledge of the expenses since he is present on the site. He applies construction specific accounting knowledge.
- Since education always helps, hence training to be given to labourers, employees and management professionals.
- Emphasis on written procedures (SOP) is important. Procedures should change improve. They should be evaluated periodically.
- Effective Good communication with employees is valuable and necessary. They result in strong relationships with all parties and frequently result in future referral business.
Overall building finance in construction industry takes time. Following the above guidelines will enable the owner to develop business skills to reap profits in less time and have sustainable career in construction industry.
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.
Every business has both ups and downs and so one must ensure that he takes all possible measure to try to keep his business afloat during the downs and try to save as much as he can during the ups. This is perhaps the most common phenomenon of probably every successful businessman all around the world. This phenomenon is not limited to just one particular industry but is accepted in any kind of business. We have witnessed the same instance in the construction industry many times.
People belonging to this industry often see it to be the ever blooming one and does not pay much attention to the fact that it can also have a downward trend which can appear anytime sooner. So they simply lack to take any precaution and happy making more expenses. But there also comes a time when you stop getting business. This could be due to several reasons. There has been a sudden increase in the price of raw materials or the policies of the government as such that it does not favor the construction segment. These could be few reasons why the business may take a dip and it becomes imperative for the business owner to take necessary steps in advance so that he can eventually save his business from completely winding up.
There are few tips that one should follow to keep his business floating and not think about winding it up.
Maintain a contingency fund:-
Maintaining a contingency fund is quite crucial when you are part of a business that is highly volatile. While you have set up the contingency fund, it is also imperative that you add some amount on a monthly basis and increase its corpus. At the same time, you should invest that amount is some debt funds where you averse from taking risks and are also content with the little returns that it is able to give you. What is important for you is to accumulate funds for the bad time keeping aside the intention to achieve good returns. So when you see the business is on its down, you can depend on the money that you have in the emergency kitty. Likewise you can also maintain a separate fund for business expansion which can be used for purposes related to the expansion of your business.
Cut down your operational costs:-
Cutting down your operational costs will help you big deal at times when the business is not doing to its potential. You have to give a clear instruction to the various levels of departments that they need to reduce the operational cost or they may have to face expulsion. Construction business being a volatile one does not stay put at one juncture for a long time and therefore there is every chance for it to bounce back real soon. If at all things get worse, then you might even take the decision to do away with assets that are no longer worthy to the company. These are few things that can be done to keep your business alive.
Like many other industries, construction industry is one such sector where beginners have a tough time while they give a start to the business. They got to understand the tricks of the trade and then play the game keeping its rules into consideration. Apart from this, there are always big companies that are waiting to eat up the small budding ones. They do want much competition to their set business. However, it is not always that you experience a direct threat from the old players but many have bitter experiences as well. Small contractors who are primarily fresher and do not know how to run the business can face horrendous situations due to their inability to tackle them.
We will be talking about some generic challenges that most newcomers experience and what can be done to do away with those challenges and end up becoming a successful entrepreneur.
Knowing the business:-
It is very crucial that you know your business well before you get into it. This does not imply that you should know everything about it. This may not be virtually possible for someone to know everything about his business first and then get into it. We all learn while we do something but before we start doing something as important as getting into the construction business, we should know the pros and cons of the business. You can talk to industry specialists about it and take guidance from people whom you can trust. Try to generate contacts with people who have been for a while in this industry. You can expect some good advices coming from them which might help you to steer your way in this business.
Do not overspend on anything:-
You need not have a swanky office if you intend to become a contractor. A normal office will do. Clients check your work history to give you contracts and not the sort of office you have leased. Also, do not go on a buying spree for heavy equipment. They form an integral part of the business you are getting into but your selection should be on the basis of your requirement. You can also take machines on lease. So you do not have to necessarily buy heavy equipment to work. You can take them on rent and fulfill your purpose. Many budding contractors seem to do this mistake and repent later.
Do not fall for offers that are unethical:-
If you are new to this business, you will meet people who will give you offers that may not be ethical but definitely alluring. You might be in desperate need of work and may consider it to be a wonderful offer. But this can be a trap and might end your career as a contractor. By no means should you accept any offer that goes against the norms of the law of the land how enticing it may be. You got to patient to get business. Showing any form of desperation can go against you and can lead you into serious trouble.