Category Archives: Business

Giving value products to the end user should be your motto

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In order to sustain in a competitive environment, the motto of your business should be to give the ultimate to the end user. There should be absolutely no compromise to the larger interest of the customer because if they are happy with your final product you are going to get more businesses from them. The construction industry works on the same line and they consider their clients’ wants to be the most important thing in their business. They firmly believe that it gives a shape to their business and they understand the right way to be in this business. Clients have different demands and they sort of expect more from the construction companies. Therefore it becomes difficult to meet all their expectations. However, they give their best shot to at least reach near to their expectation and this is perhaps enough to make the client content.

Using quality raw materials gives formidable shape to the end product. Many understand it and there are some who for some reason does not implement it. It is obvious that the prices of the raw materials that are excellent in terms of quality are higher than the ones which are a bit inferior. This means that the company has to shell out more money to buy the supreme quality raw materials and this in turn increases the ultimate price of the product. Now the problem would be on the clients end. They may not be ready to buy the end product at an increased price though they understand that it has been built using the best quality of raw materials. This is probably the reason why there are handful of construction companies who shy away to use the best and believe to deploy things that suits their budget.

Market your products well to insure your costs:-

If you fear a lot then you can’t be a part of the construction industry. Here people are bound to take risks and they take risks by believing that their efforts will not go in vain. Also they try and negotiate the cost with the investor so that they get the money from them in time and can also pay the contractor and other entities involved in the transaction on time. The next step they take to ensure things go their way is they market their products by making it look attractive. Right from the period the foundation is laid they come up with attractive offers for buyers to book their apartments in the first few days. Since the offer is available only for few days, people do not want to let it go off. Your marketing strategy worked and you made some money using which you can carry on your construction work.

It creates goodwill:-

If you are a construction company that is known to build quality apartments, you have formed goodwill of your company. People know you by your work and you achieved this position because you believed in giving the best to the mass.

Contingency fund to be maintained to tackle poor market conditions

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Things are not always rosy for any industry and they all have to go through some rough patches at different phases. You try to pull out the details of an industry for the last two decades and which is doing phenomenally well now. You will be astonished to see that it has gone through several bad phases in those 2 decades and this reveals many things. First is not every industry generates profits at all times and when it experiences the bad phase, it has the potential to wipe off many companies that are associated with it. The second is the most important point and it talks about how to overcome the bad phase systematically. Now focusing on the construction segment, it is also considered to be an industry that has generated profits in huge figures and the profit numbers have been drawing more people linking up with this industry.

As we say people come and go but the one who manage to stay can become a successful business owner. As a matter of fact, staying in this industry is a bit difficult as people have mended their ways after making some money and mostly losing everything they had. So what ideally important is to stay afloat during turbulent times and you can do that only if you have managed to set up contingency fund for your business.

Normally, we set up such contingency fund to take care of any emergency in our personal lives. Knowing that the future is unknown, these funds are said to be maintained at all times irrespective how eager you are to buy a luxury for yourself. Contingency funds are never meant to fulfill your luxurious needs and people need to understand this before it gets too late for them. In the same context, contingency funds are quite important when it comes to tackling an emergency.

Keep increasing your contingency fund:-

At the beginning of the construction business, you must have allocated a certain amount towards the contingency fund. But as you move ahead in life and simultaneously in your business you need to ensure that you keep increasing the amount and save more in your kitty. While you grow your business, the risk factor also increases manifolds and therefore it becomes a must to keep increasing the money in your emergency kitty.

Do not use contingency fund to meet business requirements:-

Contingency funds are not meant to meet your business requirements like buying heavy equipment or paying wages to your employees. It is there to take care of difficult times only. You have to make sure that you avail sufficient amount to meet other expenses. However, when the business is not doing well and you are cash crunched and need to pay the bank loan perhaps that is the moment when you should take out money from the kitty. You can consider the situation where you do not have work in hand and you got to pay your dues to different institutions as an emergency one and can make use of your kitty to meet those needs.

Plan your budget for a new project

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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.

Protect workers engaged in excavation and trenching works

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The Occupational Safety and health Administration and laid down some stringent laws that protects the rights of the laborers engaged in perilous job activities. Now it becomes the onus of the construction companies to follow those laws or else the license to continue business will get scrapped. Just one complaint from anybody and if the authorities find that the laws were not followed it can pose a lot of problem to the construction company. This is why it is a must to all the construction companies that they take uttermost care in ensuring that the workers working in perilous conditions are provided with enough protection so that if there happens to be an untoward incident the number of casualty is limited. Dangers are immense for construction workers that are engaged in excavation and trenching works. Though both excavation and trenching are different from each other but they both carry enough risk that may cause huge casualty and therefore enough care needs to be taken to protect the life of the workers.

Before any excavation or trenching work begins, the construction company should do a thorough study of the soil. It will help them understand the kind of risk one has to undergo and also the kind of precautionary steps the company needs to take to ensure the lives of all the workers are protected. No soil from two different places is similar to each other and therefore when the excavation process begins the soil may act differently. Trenching work is more difficult than excavation work and time and again it has been observed how important it is to understand the soil composition first and then start with the trenching work. Pre-planning of excavation or trenching work is also equally important. There are many things that one needs to take into consideration and plan everything in advance to the initiation of the project. Companies who are experienced in excavation works do not take pre-planning lightly and understand its importance towards the success of the project.

For companies that are new into excavation work, they need to be little careful with what they do. First and foremost they need to prepare a checklist of the things that they require and the things that they need to check prior to starting the work. Things such as the weather of the place, the traffic around the place, soil classification, the surface and the ground water, overhead and underground utilities etc. needs to be checked. These things should be known to the company before it places bids on the project. Once that is done it also needs to check the number of ladders it may require, the fall protection needs, safety equipment needs etc. They can gather much of this information from the local authority officials and other utility companies. This will help him to figure out an approximate cost to the project and also the cost of the safety equipment he need to garner to ensure the project is completed safely and without any harm to any of its employees.

Communication is key for a heavy equipment operator!

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Have you ever been to a construction site? There are so many things that go on – creating the foundation for the structure, moving of the heavy construction equipment, workers randomly moving and working here and there! It is quite possible that you hurt yourself, if you are not properly aware of what is going on and where.

Proper safety gears must be worn and used by everyone who is working as well as moving about in the construction site. At some place, there might be some concrete construction going on and on the other side, there can be structures of glass being made. Being careless can be dangerous for you as well as for others.

What needs to be done?

Very construction site follows some basic safety measures such as –

  • Wearing safety gears – high visibility jackets, eye protection gears, helmets etc.
  • There are boards and signs that clearly indicate the actions or steps that need to be taken
  • Things that are prohibited and should not be done.

Whether you are a worker or even a visitor at the construction site, you need to make sure that all these measures are followed by you.

Operating the Heavy Construction Equipment:

Heavy construction equipment is something that cannot be operated by everyone. It needs skill, training and certificate. Therefore, when you are about to operate the heavy construction equipment such as loaders, excavators or backhoes, lifts or cranes, it is a must that you communicate well with the other workers.

The heavy construction equipment often moves very fast and swiftly. Within a fraction of a second and just by clicking on a single button or by moving the steering handle or joystick slightly, the lifts, cranes or the buckets can move swiftly from one direction to the other. Hence, the unaware and inattentive workers can get hurt or harmed by the movement of the heavy construction equipment.

On the other hand, it is also quite not possible to remove the workers from the construction site. The reason is that the workers do all the manual labour and make sure that the dumping, excavating, lifting and all other construction works are performed well.

How to communicate with the workers?

There are some key factors that the heavy construction equipment operator must keep in mind. The machines or equipment move quite fast and swiftly on all directions. Hence, before pulling or pushing the steering handle, a concerned person must indicate the clearance of the ground. It is only then that the operator should start the task.

On the other hand, the concerned person should communicate with the other field workers. It is only when the workers give thumbs up to proper tie up of the objects that need to be lifted, or the clearance of the excavation ground or the proper direction of the dumping ground that the operator would start the action. Hence, it is a chained or a linked process that is successful only when all the workers and the heavy construction equipment operator communicate together well. To communicate with each other, signs or boards, high frequency lights, torches etc. are frequently used. But the traditionally popular method of communication is two-way radios, though smartphones are also widely used nowadays.

Team work matters most in the construction business

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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

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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

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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.

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Summer is deadly. Ensure that your employees are hydrated

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It becomes difficult to work on a hot summer and under the scorching heat of the sun ready to burn you down. Only the heavy equipment operators who get the privilege to work inside an air-conditioned cabin may get a bit of relief but for other workers, they may not see a solution. They have to work under the hot sun and need to ensure that they keep themselves hydrated at all times. It is common biology. More than 70% of our body is of water and when the balance is disturbed it may cause all sorts of problem to the human body. Now you do not want to fall sick just because you have failed to consume water and forced yourself to work in the hot summer. It is quite certain that your body will not be able to take this and will show signs of breaking down.

Water is an important component that you should have continuously during summer but other than that you should also intake items that helps to keep your body hydrated. There are certain fruits that play a crucial role as far as hydration of your body is concerned. So the employees working in the construction site should make a note to keep some fruits in their bag and eat them whenever they get some time out of work. To name few fruits, watermelon, orange, papaya, grapes are rich in nutrients that keep your body hydrated. Watermelon is considered to be the fruit that can supplement water. So in case you are working at a site that does not give you easy accessibility to water, you can keep some pieces of melons in a box and gulp it whenever you can. You do not have to go far to fetch water and can simply have this to stay hydrated.

When you sweat a lot, you are losing water from your body. Always try to keep your body wet with water. You can carry some ice and place it on a towel. Wrap it well and tie it around your shoulders. You can also use it to wipe the seat from your body. In this way, you not only wipe off the sweat but also hydrate your skin. You can also make use of shakes that contains lot of water and some portion of milk and fruits. You should keep taking sips at regular intervals.

Keeping the construction workers hydrated during summer should be the responsibility of the business owner. They may not provide everybody with fruits but can definitely arrange for sufficient water at all times. The employees should not run from pillar to post just to fill in a bottle of water. You can keep water storage tanks with water purifier attached to it at every convenient point. If the jobsite is big and one needs direction, then there should be signboards showing signs from where the bottles can be filled. Please do not take dehydration lightly as it can even cost a person’s life. So ensure that all your employees are properly hydrates and are therefore equally healthy.

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Maintain your focus throughout your journey in the construction business

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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.

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