Category Archives: Company

Success tips for small construction companies

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We all believe that nothing can substitute hard work. People who are willing to work hard can achieve success. But just working hard can really make you a successful person is a question that many ponder but yet to come up with an answer. No doubt that one needs to work hard but that is kind of pre-requisite. In today’s time where you see enough competition across all industries and where everybody is willing to work hard and give their 100%, you need to do something extra that will display you in a different league. We all want to know what is that “Something Different” that is required to do so that we do not end up one amongst the crowd. There are some tips that people follow which makes them different from others and eventually helps them achieve success.

Small construction companies who dream to become big someday or the other need to follow certain tips religiously. These tips will help them and for that matter will help anybody who has a startup company and wants to see it to grow.

Don’t venture into something that you don’t know:-

We know that guys who have the ability to take risk will benefit the most in the construction business but that does not mean that you take unnecessary and unwanted risk. When we talk about risk taking ability, we mean guys who have the ability to take calculated risk and you can take calculated risk only if you know the stuff that you are getting into. Never get inside a tunnel without any light. You will end up bumping. If you come across an opportunity that you feel is a bit challenging but also prolific, try to know more about the opportunity. Also analyze the pros and cons before you dive in. Try to know as much as you can and take advice from people who know about the stuff.

Invest your money wisely:-

Investing your money in your business should be backed by thorough research and a couple of good brain storming sessions. You will come across lot of opportunities but it is you to decide which one you want to pick and which one to duck. Every opportunity may sound to be enticing but it also has a catch along with it. You got to understand that and then need to prepare yourself accordingly.

Stress is lethal for success:-

If you are overworked, it is bad but if you remain stressed all the time, it is worse for your business. An owner of a construction company goes through lot of ordeal and that is perhaps the part of his job. He needs to take his work seriously but should not feel stressed. Stress will block your ability to think rationally and this is where you begin to take decisions that are not healthy for your company. So relax and enjoy every moment of your work even if you incur loss in your business. Do not let it affect your mind. Just remember the mistakes and try to repeat it.

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Being in the company of good people is crucial in construction industry

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We generally meet all kinds of people when we are associated with an industry like construction. Generally people are tends to be good but some may not have that good intention. Hence, it is very crucial that you pick the people whom you feel that you can be compatible with. This does not mean that you will not have any relation with guys whom you feel does not fall in your compatibility zone. You will maintain your relationship with everyone but will restrict yourself to few people rather than getting open to everyone. If you make yourself available to everyone, there are chances that people might take undue advantage which will not be in anyway healthy for you. However, if you are in the company of people whom you trust, there are lesser chances that they will ever cheat on you.

Threat of losing project/client:-

If you get yourself in the company of wrong guys who may pose well to you, they might try to get info of your work and you never know when they will snatch away your project and start working on it. There have been numerous such cases where contractors have lost their project after they came into contact with someone they hardly knew and gave too much space to them. They on the other hand took as much info as they can to snatch away the project or just the client. They established their contact with the clients and ensured that the future projects are given to them. By the time the contractor came to know about this, he has already lost the client.

You will grow in the company of good people:-

Construction sector can often show you turbulent times. This being a dynamic industry, we can face any sort of threat from any corner. Therefore, it is important that you be in the company of people you know and whom you can trust. They might come for your help during your bad phase and bail you out. Alternatively, they can also give you valuable advice that you may hardly get from people in this circle. At times, this advice helps you a great deal. You might have taken a stand on the basis of certain information which may or may not be correct. However, you have a slight confusion on this and want to take a second opinion. Therefore, you decide to discuss it with your guys and you get to know more insights that you were complete unaware of. This eventually clears your thoughts and you are able to take a wise decision thus having a positive impact on your company.

Be in touch with them even if they are not your employees:-

We feel sad when we lose men who served our company for years and now want to retire. Even if they retire, they are very much a part of the company as they have served it for years. Therefore, being in touch with such people can always be beneficial for the company. They can guide you in difficult times and help you come out of a crooked situation.

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Be ready to pay heavy penalties if fail to protect the workers

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An employee joins a company expecting that the company will protect his interest and he will work in a safe and sound environment. But if the employer does not follow the safety norms and plays with the life of the employee, such employers are bound to pay heavy penalty for risking the lives of its employees and should also affect the license to conduct any further business. This law should be applicable to every industry and should not be industry specific.

Also, there should be a governing body which will regulate the laws and will work for the larger interests of the workers. The law of the land should also be stringent enough and the convicts must be dealt severely. Here in US, we have quite stringent laws when it comes to protecting the rights and interests of employees and if an employee meets an accident that happened due to employer’s negligence resulting to the injury or death of the employee, employer should be ready to face the brunt of the law.

Construction companies in US have to be particularly sure that they are providing all necessary safety accessories to the workers because if they fail to do so and if it results in an accident the company will have to pay the price for it. Construction sector is by all means is considered risky for its employees. Right from operators to engineers and welders to construction workers, none of them are safe as long as all the precautionary measures are followed by the construction company.

Penalties can lead to thousands of dollars:-

If there is an incident that occurs on the jobsite which results to grave injury or death can lead to severe penalty on the company. It will have to pay good sum of money that can be thousands of dollars to the victim of the accident. Therefore it becomes extremely crucial for the construction company to ensure that it provides safety accessories to one and all. No employee whether permanent or contractual will work without wearing proper safety accessories. The contractors need to ensure that the safety measures are followed and that no employee violates safety procedures. If an incident takes place, the company not only loses a valuable resource but also good sum of money.

License may get cancelled:-

A construction company also needs to keep a thorough check on the number of incidents that has happened on the site. There are chances that the company may lose its license if it fails to follow the safety norms and if the numbers of accidents are on the rise. The law of the land is quite strict when it comes to things like these and no one can play around with the lives of young men irrespective of the nature of job that they are in. One can understand the consequence of the license getting cancelled and the amount of loss the company will have to bear.

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Hurdles one faces while setting up a construction company

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Starting up any new business is a tough task. It becomes tougher for the ones who do not have much or any experience in handling the business thus making the entire process extremely painful. In addition to this, it become arduous to keep the present business running as there are chances of facing severe ups and downs in every phase and leap that you take. Like any other business, setting up of a construction company is filled with risk and hard work. You also need to be foresighted and got to assume things appropriately so that if you see a threat you can counter it in advance.

Hurdles are plenty in the construction industry. However, it also gives you a ray of hope which is more than enough to sustain in a dynamic industry like this. So the crux of the matter is how well you can adapt to the ever changing phenomena of this industry and how quickly you can recognize the internal as well as the external threats that may destroy your dream of owning a construction business.

Legal concerns:-

While setting up a company, there are a lot of legal formalities that one needs to complete without which it will not be possible to run a business in US. These legal formalities can be lengthy at times and therefore you need to know the right way to get your work done at the shortest possible time. You might want to take help of an attorney who will guide you with every step and get things done for you. Getting sanctions from the government may not be a huge hurdle but it definitely takes some time of yours to get you started.

Setting up an office and a small team:-

Once you have received the sanctions, the next step will be to set up an office and also have a small team in place. You got to hunt down for a place that you can use it as an office and also recruit few men who have worked in the construction industry. If you have little experience in this domain, you will be able to pick the right guys but if you are a newbie then things might get really complicated.

Buying heavy equipment:-

In order to get a small project, you need to have a couple of heavy equipment. Now you have the choice of either buying them or taking it on rent. If you plan to buy them you have to shell out good chunk of money but if you take it on rent you need to ensure that you have sufficient reserves every month to pay the rental amount. Other than this, buying the right machine is always a challenge especially if you are going for second hand ones.

Running the office:-

You got to pay salary to your team and also meet the office expenses that will recur month after month. This means that you got to have ample reserves in hand. It is to be noted that you do not get a project the next day you set up your office. It takes lot of time to get some small work. So maintain your business becomes a big hurdle.

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“Make hay while the sun shines” goes well with the construction industry

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Not every industry has its golden era forever. There are times when they see ups and also times when they also have to see the downs. You name any industry and you will see people related to it cheering during the good times and struggling when things are not so good. So as a business owner it is crucial that you make the most when things are positive in your sector and stay low when things are not doing well. This may not be the only mantra but is certainly an important one when it comes to finding success in any industry. We have often heard the saying “Make hay while the sun shines”. It makes a lot of sense in an industry that is dynamic and has lot of competitors all wanting to make the most. Construction industry is one such sector where people are vying for almost anything and everything.

Construction business owners know one thing for sure that it is pointless to struggle to get business when the overall industry is not performing well. For some it may sound weird when they get to hear that the construction industry is not doing well. They may have the belief that it is most rewarding industry in today’s time and for some reason can never see any downslide. Well as a matter of fact, every industry has a phase when it has to see the bottom and so it is with the construction sector as well.

Companies should have patience:-

Many new companies wind up their business when they do not see work coming. They probably get into the sector when it is trending downwards and since they do not have work in hand, they can’t take care of the operating costs and are compelled to give it up. Well for such enterprises, the only advice would be drastically cut down on the operational costs even if it means running the business from your house. If you have to do that, you should do so. Having an office and paying rent for it can become too strenuous for you to handle especially when things are bad. Therefore working from home becomes the most viable option and also cut down on the workforce. Stick to any small project that you get and learn to work on heavy equipments so that you can operate the machine on your own. This saves the cost of employing an operator.

Be aggressive when the sector is doing well:-

As understood by many, construction sector rewards you well when it is at its peak. You can take the risk and work aggressively to make the most. While you making profits, you got to remember to save resources for times when the business may take a downturn and you have to keep it afloat using those resources. This is why try and be aggressive when others are minting because you also will make lot of money then.

Making of a construction company

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It may sound hard to begin a business when you do not have much experience on how to run it. It will in fact be quite difficult for you to sustain the initial few years and this is to be considered the most crucial period of any business setup. It is during this time that you experience too much of turbulence in your business and many people are compelled to shut their shops. But the one who are able to make it through these rough times are the one who are set to make history. The beginning of a construction business is no different and one has to go through the hardships which a person from some other industry goes through. However, what one needs to understand is till how long they have to experience the turbulence before finding the shore.  For this one needs to ensure that he has the right frame of mind and a sound financial backup that will help through his journey of setting up a mighty construction company.

Know how the industry functions:-

In order to run your business successfully, it is quite imperative to understand how the overall industry functions at ground level. Without knowing much about the industry, it will be futile to go any further with your business. It may lead to severe complications that may catch unaware. Things like how you can take a project, what prerequisites are required, the kind of expectation that one can set upon you and what you can do to fulfill those expectations are crucial. Running a construction business is not a easy one and involves lot of technicalities that the one who runs it should understand and also apply it well.

A bit of experience is always helpful:-

A person who knows how to deal with challenges and overcome them is the one who will find his place in the construction domain. Having little experience on how to run the business is crucial. It actually teaches you to deal with different types of situations in an effective manner without ruining your daily affairs. It also helps to learn to maintain good relation with your clients even when you have surrounded with different forms of challenges some thrown by the clients themselves. It is never easy to keep your clients satisfied as they always expect more from you. But to know the way to keep them content is an art that one can learn only through experience.

Have sound financial backing:-

This is perhaps one of the most important criteria one must consider. Every affair of your business in co-related to finance. You get projects keeping into deliberation the strong financial backing you have to complete the project on time. Your clients gives you work after they are satisfied that you have the resource to pay salary to your employees. You have to buy heavy equipments and that costs you a bomb. Therefore having a strong financial backup or some sort of reserve is imperative when you are about to begin a construction company.

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