Category Archives: Business

Construction industry is a rewarding sector. One must simply stick to it

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Not many industries can reward you with a great career and one of the industry that can really offer all that we desire is the construction sector. It can offer you with plenty of money, goodwill in the industry, job satisfaction and a career that can set you apart from others working in some other domain. There are many other industries that offers good sum of money but they lack job satisfaction. Some even lack a long lasting career but construction industry is perhaps the only industry that one can be a part of as long as he wants. So earning a lot of money, having a good reputation with your peers and being completely satisfied with your job sounds so merry but it takes a lot of pain to sustain in this industry as you do not get much help from people wanting to keep your business alive.

One has to go through tremendous pressure if he is new to this business. It is so obvious that people will not want to have much competition and therefore the new guy has to find his way on his own. He has to learn from his mistakes and then be careful to not to commit the same mistake all over again. We would be discussing what one should do to stick to the business despite of all the problems one has to encounter.

It should be your business every time in your mind:-

Handling a stiff competition where people are eying your business and are always ready to take it over if they find a slightest of chance is never an easy task. Your business got to be in your mind all the time. This actually gives a kind of impression on people how serious you are with your business and if you are the guy who will be able to take the business to the next level. People who are completely focused with their work are liked by others and then you may find guys who will come to you with good advices. You may start getting guys who would want to work with you and be a part of a growing company that seeks no height as unachievable. Having constant focus on your business will give you the strength and capacity to fight back your competitors and will also help you to get businesses from new clients.

A good strategy is all you need to keep the business running:-

Having a good strategy in place will work as a roadmap for you. You only need to follow the plan and check if you are able to attain what you have planned on a regular basis. Just having a sound strategy may not be the only thing you need to be in the business but knowing how far you have been able to attain stuffs you have planned is of huge importance.  You should be ready to face challenges that comes up your way. At times, things may not move your way and you may have to change the strategy a bit. You should not be adamant and should be ready to bend a little when the situation needs.

Heavy equipment sell by performance or by mere brand name

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

One of the most important component that has the potential to keep the construction industry moving is heavy equipment. For a person who wants to buy a heavy equipment, he is often baffled with the question if he should be buying an equipment that has a history of good performance or something that simply has a good brand name to back it up. Not all the famous and big brands have produced the best of machines and not all the low market brands have manufactured vulnerable machine is a point worth noting. Though brands like CAT, John Deere, Hitachi and alike are famous for producing real good machines but there are not so famous brands that have produced some machines surpassing the ones produced by the famous brands. In other words, one must go by a brand name as that develops a kind of confidence in the minds of the buyers but simultaneously, if one gets to know that a local company has come up with a real good machine, then they should also show interest in buying that.

We will discuss how a machine with a brand name is an easier selling product than the one without the name of a famous brand.

Brand creates confidence and trust in the mind of buyers:-

What happens when somebody tries to sell you a product that you have not even heard of? The product may be exceptional in terms of quality and performance but you do not know that. This means that the product though being highly productive and excellent in quality lacks the most important feature which works as a constraint from getting it sold. The product lacks a brand and people buy things that has a brand name attached with it. The reason they go for a brand is that other have used the product of this brand and they are content with the quality which in a way suggests that this brand produces goods of high quality and one can easily lay their trust on it.

Brands give importance to the quality of equipment:-

Since brands know that people have huge expectations from their products, they will not want to play with the quality of the equipments. They will want to give the best to the clients. However, knowing the needs of the clients become a must. They can’t produce stuffs that are overtly expensive and that no one is ready to buy it.  They try to maximize the feature components in the machine and try to offer it to the buyers at a reasonable amount.

Performance is more important than just the name of the brand:-

Without a brand’s name, you will find it almost impossible to sell a heavy equipment. Similarly, one can also create a brand name by producing quality machines. It is not that the famous brands were born famous. They had to make their way in. If they stop manufacturing quality machines that gives importance to performance, you will soon find them to be history and they will be replaced by someone who sells machines based on its performance.

Related articles across the web

Youths making their way in the construction domain

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

We all have the wish to set up a company of our own and be our own boss but very few are indeed able to fulfill this dream of theirs. It is often the level of competition that weeds out the new talent and also the lack of preparedness on the part of the youngsters before they begin with setting up their business. One such industry that has given the wings to fly is the construction sector but the sort of competition one gets to experience in this industry is enormous. There is a rat race that exists in this sector. People are expected to do everything to just get a deal. It is not that getting work is way harder. It is just that people for some reason do not have the patience to wait for the right deal to come by.

Youths in particular who aim to become a part of this industry needs to take care of many things. Firstly they should work on their knowledge on this industry. This sector is pretty vast and involves lot many things that affects it on an everyday basis. So having a fair amount of idea often helps while taking the right decision. You should not want to see yourself lost when you get to know some common stuff about the industry that you are a part of. Therefore keeping your eyes and ears open and accepting new things from others should be your mantra to learn things.

Heavy equipment play a pivotal role in the construction segment. It is said that the companies who have the best machines and backed with a better workforce can stand tall at all times. So just having modern heavy equipment is not going to help you. You also need to back it up with efficient workforce who knows well how to work on those machines or else it is futile to have them in the first place. Simultaneously, not all machines that have the modern look over it should be purchased. You may never need that stuff in your entire project work and hence there is no need to possess that in your arsenal. The better way to work it out is first know your requirements and then go for the purchase. Also, purchase of heavy equipment should be done after thoroughly scrutinizing your finances. Heavy equipment are expensive metals and you may not want to spend your money on something that you may not use for the time being.

Last but not the least; keep a tab on your finances. If you do not do that, then you will not know when you have exhausted all your resources in the spree of buying heavy equipment and stuff that you feel is important but now you do not have any money left to run the business. Many young entrepreneurs have gone through this situation and they have to ultimately take loans to run the business or simply give away the idea to continue any longer.

Related articles across the web

Process to acquire a construction company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

The acquisition or buying of construction firms is common in construction industry. This transaction involves a buyer and seller. In terms of business it is also called as acquirer and the prospective acquiree possessing the target company. The buyer may be motivated to buy a target company due to future growth plans, diversification in market, geographic expansion, market penetration, organizational development and to increase the assets.

Construction is a risky business, hence these transactions should not be done in haste. The buyer or acquirer needs to be diligent and should have a strategic plan. The buyer must create database of the interested target companies and collect each company’s information in terms of factors such as revenue, profitability, growth rate, number of employees, and products, so forth. For the transaction to take place it follows an order as

 

1.Initial contact:

The first step in the acquisition process is the initial contact with a prospective acquiree. It can be made by different ways as

Direct call and meeting: The buyer makes a contact with owner of the target company either through a direct phone call or an email to initiate one to one discussion. The initial discussion may be followed by many more discussion before a final deal is struck.

Joint venture: Instead of direct acquisition to enter a joint venture agreements which gives the acquirer the overview of the company’s management and operation.

Third party: Instead of making a direct contact, the acquirer delegates the work of contacting target companies to the third party to make inquiry about the willingness of the owners to sell.

 

2.Non-disclosure agreement:

If the prospective seller is interested in selling his company to the acquirer then both parties sign a non-disclosure agreement (NDA). This stamped document is highly confidential and information is not be given to any other party.

 

3.Letter of intent

Post NDA, the target company should send its financial statements, summary level documents to the acquirer. Based on this information, the acquirer may proceed with the further transactions and is documented in a letter of intent (LOI)

 

4.Due Diligence

It is the process of investigating and estimating a company before buying it, a comprehensive analysis of legal, financial and management documentation. The acquirer then sends a list of information and documents as due diligence requests to the target company. As a rule, for Due Diligence is necessary requires at least the following information:

1) corporate documents; 2) entitled documents (e.g., copies of powers of attorney); 3) licenses; 4) accounting and financial documents; 5) documents relating related to the assets of the company; 6) information on the rights to intellectual property;  7) all commercial contracts and agreements;  8) information on labour relations;  insurance; about disputes and litigation, administrative proceedings;  9) other documents relating directly related to the company. Since due diligence involves a lot of research it is conducted by both legal consultant and technical specialist in construction.

 

5.Final negotiations

The results of Due diligence if not found satisfactory then the buyer may either decide to proceed by decrease in cost or may not go ahead. If everything is favourable then buyer may proceed with the transaction and present the seller with a purchase agreement. If the terms and conditions and price are agreeable to the seller than the transaction would be complete.

 

The process of acquiring a construction firm is not an easy task. One needs to be experienced and understand the market trends to be successful at it.

Going out for vacation? Whom you can handover the business?

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Entrepreneurs work hard to manage and operate the entire business. Due to which they run a risk of burnout. They should take vacation to keep a work-life balance and stay refreshed. Taking time for relaxation will make them better decision makers. However, it is not easy for them to get away from the daily routine job which is very demanding. They should bear in mind that the company can run without them too for some days so taking a vacation will be helpful activity.

The following are some of the tips which may be useful to follow when boss plans to take a vacation.

1.Advanced preparations

He boss should communicate to the employees the dates of vacation. This will allow the employees to complete the necessary projects or approve of deliverables before vacation.

In case of individual clients and direct customers they should be informed early about the absence period. This allows prioritizing projects to be completed and the tasks to be delegated to be completed later.

The boss should take important contacts and their phone numbers on computer, mobile phone and on a piece of paper. Having this list readily available will save time in case of need to contact any of these people to handle an emergency while on vacation.

 

2.Type of communication

One or two people should only be allowed to contact the boss during the vacation period. Especially for updating about projects, when immediate attention is required or a new client has joined. The communication should take place via emails or text messages and only if needed then by phone calls.

 

3.Avoid working on big or major projects

Even when boss takes a vacation, the projects will be going. However any live or major projects should not be started during this period. Since there can be initial problems and project may not get completed thus may ruin the mood of vacation.

 

4.Prepare and train the employees

Make a list with employees so that know how to handle various problems and emergencies Though this responsibility would be delegated to only one employee, others should be also aware of how to handle the situation.

 

5.Every project should have a designated leader

While the boss is on vacation, every project should have a designated chief who ensures that deadlines are met and quality is maintained.

 

7.Do not hand over the reins of company

Although the teams may be running the projects successfully, the project leaders should never be allowed to take any major company decisions in absence of the boss.

8.Handover the projects

The boss should set up a meeting with the person/s who will be handling his project. Hand over the document which lists the important points regarding the project in terms of source of information, main deliverables, main risks/issues, stakeholder and sponsor’s contact details. This allows the work is completed within the given time.

 

9.Built a dynamic and dedicated team

This ensures that the work does not suffer and is completed within the required time frame.

 

Thus with careful planning, putting systems in place and by trusting the team, vacation time of the boss would be spent with enjoyment and relaxation.

 

Success in construction business is dependent on your foresightedness

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Things do not always move in one particular direction. You will see a lot of changes in things from what it is now and what it was in the past. Changes are bound to happen and when it does happen, it turns out to be good for some section of the population and bad for the rest. There is probably the third section which is not affected by it at all. The one who manages to taste success are the ones who are able to make right estimates at the right time. So the people whom you see at the top of various industries have managed to reach to that position by laying down their strategies after taking some very accurate estimates. Now the estimates are not something that is taken on air but are in fact made on the basis of precise information, some general calculation and most importantly foreseeing opportunities and threats.

One such industry that requires its men to be highly foresighted in order to become successful is the construction sector. This particular sector is indeed dependent on various other sectors and any rise or fall in the prices of the associated sectors can have a major impact on the overall construction sector. So a person who can foresee a challenge or an opportunity will take decisions accordingly and will keep his company safeguarded from any market threats.

Likewise he also will be able to make good money for his company in the same manner. This does not imply that a person who is foresighted never makes an error. Nobody is able to read the market correctly. They can all make some very close estimates but that does not mean that they will be correct at all times. There are also chances that they will end up making a mistake in calculating some facts or taking some accounts into consideration and which will cost them big chunk of capital. There are many instances where construction companies have taken incorrect judgments which have cost them dearly. But these are parts and parcels of the business. If the business owner hits the right note, he makes a bounty but if he somehow fails to get it right, he should be ready to face the music as well.

Strategy makers are ideally people who knows the in and out of the construction segment and therefore they are in a position to foresee things which others can’t. They are considered to be the highest paid in the industry and many even open their business as they do not see any reason not to have a business of their own. If they generate the quality to foresee things as it comes their way, they are able to take better decisions and this can really pay him off well in the construction business or any business that is linked with the construction sector.

Foresightedness has always been considered to be a virtue and people who possess this quality never have to look back at things. They only aim for bigger aspirations in life.

 

Related articles across the web

Use Social Media as a platform to grow your heavy equipment business

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Starting a business is not as difficult as growing it. You may need some amount as investment money, little know-how about the business and you can start your own business. You probably do not have to worry about making profits in the first phase of your business but as and when your business grows older and you start generating profits, making new clients, which is perhaps the time when you start thinking of expanding your business. Well, in order to reach the larger section of society, you need to use a platform that is adopted by everybody in their day to day life. Something which the mass uses quite frequently. If you are able to talk about your business in that platform, it is evident that more and more people will get the chance to look at your business and will appreciate it by becoming your client.

Today we all are highly connected with social media like Facebook, LinkedIn etc. These social media sites are used to stay connected to your closed ones who are ideally distance away from you. But you can still see them in the virtual world. You can make use of such social media websites to promote your work, to let people know the kind of business you are associated with. It can prove to be a big boon for people who have their business in the construction domain or who deals with heavy equipment.

In order to promote your heavy equipment business, it is prudent to use social media sites that are mainly used by working professionals or businessmen. Well, what you can do is create your own group and can invite people whom you know so that they all remain in your group and in this way they get to know your business from a closer angle. This will only help you to promote your business and in case if someone who is interested to buy any sort of heavy equipment will get in touch with you and place their order to you. You should try to keep your profile very professional as it attracts people’s attention and they do not take you casually. Having a casual profile will not have that high impact as a professional one can put. Remember, when you are putting up your profile in any professional social media website, it is not solely for the purpose to stay connected to the people you know but also let them know about your business and nobody will want to deal with a guy who has a very casual approach towards his work.

Moreover, there will be others whom you do not know but are linked to the people who are in your friend’s list and they also get to see your profile. Having a professional outlook will definitely give a good impression about your business to them. You never know when a big deal may strike and you may get chunk of orders from a new client that you have made from a social networking site.

Related articles across the web

What heavy equipment salesman could teach other salesman in different industry

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Selling products of any brand can be difficult irrespective of how famous the brand is. The work of the salesman is to highlight the feature that matches with the requirement of the client and has to win his confidence that the product will last for long. Once the client is convinced with the quality of the product and how economically viable it is for him, he will go for it. But in the entire process of selling, every salesman gets to learn a lot of things out of every successful as well as unsuccessful sale. A salesman selling heavy equipment can teach a lot of things to salesman belonging to other industries. His selling techniques will be far more polished as he indulges in selling equipment that are quite expensive and people will buy those machines only if they see a dire need for it.

Intelligent selling:-

Selling is in itself an art but intelligent selling is a kind of a superior art which not many are able to master. Heavy equipment seller during his journey of selling different kinds of earth moving equipment has to choose their words carefully. They unlike salesman of different industry can’t keep on speaking to convince the client. Since they are dealing with a far more technical subject, speaking anything that is incorrect can back-fire them and they may lose the sale. Therefore they have to opt for intelligent selling where they are required to do a bit of research on the kind of work the client is into. He can pitch in his product as per the requirement of the client. This teaches salesman of other industry to follow the same pattern. Selling something just because you are given to sell it should not be your sole idea. Understanding the clients need should be the core focus area and then putting your products with his needs should be the next plan of action. If you are able to do that, selling becomes easy.

Do not be greedy after commissions:-

Salesman should not run after money. Though it means a lot to everybody but selling products that can earn them good commission should not be given preference. They can also earn commission by selling products that suit the needs of the client. Heavy equipment salesmen are required to develop a good rapport with their client and if they sell a machine with the intention of earning high commission, they may soon lose out on the client. This teaches others to follow suit and concentrate on developing a relationship with the client which will enable them to sell more products in the future and also get references of other clients.

Learn your product well before you start selling it:-

Heavy equipment salesmen are required to know their product in an out. They may not be able to capture the technicalities of the heavy equipment but are recommended to know as much as they can. This will help them to counter client’s tough questions and also win their confidence. Salesman of other industry should be open to learn as many things as they can about their product. This will help them to crack tough clients.

Performance plays a vital role in establishing the goodwill of a construction company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

A construction company requires businesses to survive and they get their businesses from the reputation they have earned for the last many years working with different clients. In the construction industry earning a goodwill is extremely difficult and it is more difficult to maintain it. One mistake (you do not know if the mistake is big or small) can tarnish your reputation and has the potential to bring down your business to a new low. If a thing like this happens, you will have a real hard time to survive and bring it up again. This sector has less friends and more foes.

Animosity in this industry is quick to happen and can turn real severe with bad results. It is very imperative to have cordial relations with your business clients, with your competitors and with people who want to get associated with you in your business but you want to stay some distance away from them. Oh yes, you definitely want to stay away from some people as you may see them to pose possible complications in your business. However, you still can’t manage to upset anybody or else you seem to be in a position where you would be inviting problems.

We will be talking in length about what one needs to do to establish a good reputation and keep the good name to continue getting more businesses.

Company should have a vision:-

You will get clients when you show them that you are a company with a vision. You need to have the right set of heavy equipment, operators and workers that knows their work well. A good strategy is always important to put things on the right track. The better you lay down the strategy, more are the chances that you end up getting good businesses. If you have your things organized, people will take that as a sign of a serious businessman and someone who is in this trade to become really big.

Track your plans and ensure that they are acted upon in a timely manner:-

Creating a strategy isn’t enough but you got to follow it religiously. If you act upon your plans and implement them, you are getting yourself closer to creating a goodwill that will eventually draw upon more businesses making your company a highly profitable one. There are instances when you see the need to amend your plans. You should be quite flexible with any kind of changes that comes up your way at any point in time. At times, you have to change a part of the plan completely. You should be ready for all the challenges. If you are able to keep a control on these few things, you will see your business is completely in your grasp and your clients will have the confidence to invest their money in your company by giving projects to you.

Take work that requires a sense of responsibility:-

If you take up projects that requires you to show some responsibility and you succeed in completing it in time, you manage to set up a very good reputation for your company. Work like these will take you a long way ahead in life and will help you to establish the goodwill that many companies have only dreamt of making.

 

Check your finances before you make any expansion plans

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

If you belong from the construction industry, you will experience many instances when you are unable to implement a plan due to shortage of finance. If you do not have sufficient money, it will be very hard for you to grow as a businessman. Many people who were not able to hold their businesses got drowned, few lucky ones made it but the one who has managed his finances well made it to the top. This industry offers a lot to those men who really deserves it and punishes those who are not organized and do not know to play wisely with their money.

Though the requirement of finance is all throughout the life of the business but you may feel its need more when you seek for an expansion. This is when you will see the need to turn up to people whom you feel can lend you money. As a matter of fact, it will be hard for you to find anyone who would be ready to lend you the much needed money. Financial institutions may want some collateral and most possibly you got to keep your business as a collateral with them.

Few important pointers that one must take into consideration before they finally decide to expand their construction business.

Expanding your business to a new city:-

When you think of setting up your business in a new city, you first need to be sure that you will be able to control it remotely. Since you will not be present always, you need to place someone who can manage things in your absence and keeps you in loop for the slightest of things. You also need to make sure if you will be able to cope up with the infrastructural costs involved to set up an office in a different city. There should not be a huge influx of funds from your existing business to your new business or it may result in a chaotic condition where you have to end up in churning either of your business.

Taking too many projects:-

Getting enough projects is always a good sign but taking too many projects that you find difficult to handle should be avoided. Alternatively, for every new project that you take, you have to allocate some funds to take care of the expenses. If you have too many projects in hand and not enough money to meet the expenses, it will lead to a disaster. You may eventually have to give away few projects after incurring good deal of loses. Other than that, it will also hit you hard on the relationship aspect that you hold with your clients. The losses will be manifolds. It will be prudent to inspect your finances before you commit on a project.

A sound financial strategy often helps:-

Running a successful business requires a lot of planning to be done. Understanding the needs of the project and comparing it with the resources you have in hand can help you prepare a better plan. A sound and down to earth strategy will often turn out to be helpful.