Podcast: Play in new window | Download | Embed
Subscribe: Apple Podcasts | RSS
Profitability plays a very important role in the survival of any form of business. If there are no profits, people would not be into business. It is not just the sheer will that drives people to form a company or do any small or big time business but the main component or for that matter the primary reason behind forming a business is the capability to earn more money than what one can presumably make in a salaried job. Now, not everybody has the potential to start a business even they have the best of the minds to run one. They have to simply stick to a job. However, if somebody manages to start a business, for the initial few years, he has to work in a no profit no-loss environment. It is only after the break even period that he will be able to witness some profits from his business. However, till that time he got to manage to stick to his business and be determined that no matter what, he will not give it up.
It has primarily been seen with small contractors that during their initial phase they start looking for profits in their business and in this process they take up multiple work and are forced to compromise on the quality. They are able to make profits for the time being but the days are numbered. They belong to the lot of people who are not able to take their business for long. Earning profits should not mean that you have to compromise on the quality. Your client will never want you to do so. It is understood that as long you do not have a brand name, people will be reluctant to pay good sum of money but you create your brand with the good work that you do.
Quality is something that you just can’t afford to compromise upon. If you do so, then you are only creating trouble for yourself. No sooner than you realize that things are going out of your hand and eventually you get to know that you are finding hard to get clients as they are moving to guys who can give them quality work. So the thumb rule should be that while you have set up your construction business, try to get some client and generate trust in their minds by doing good work. It will take time and will not happen in a day. Reach out to as many people as you can.
Creating contacts is the most important thing while you are running a construction company. People do not know you. You don’t have a brand name that will help you to get work. You got to build that. So rather than looking to make profits you should be looking for excellence. Give some time to your company to grow. Don’t be in haste as you will get nothing if you hurry. Things take time to happen and it will happen if you have it enough time. So follow the rule of not running behind profits and paying more attention to give excellent work.