Tag Archives: Construction Business

Knowing the nitty gritty of construction business is super crucial

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Before you try putting your hands into any kind of business you need to first have at least some basic knowledge about the trade. Only if you learn the trade well that you will be able to do it well and also taste success or else it will be an utter debacle. You will only experience losing all that you have, right from money to people and eventually your business. So keep your facts straight and give stress to learn the business well before you really pump your energy time and money into it. The people who will be associated with your business will look how confident you are and your confidence will come up with the kind of knowledge you possess. If you do not know much about your business, it will certainly reflect on your persona and that is going to be really bad.

Speaking about the construction industry, it will just not let you run the business if you have very little or absolutely no knowledge on how to function. There is high level competition in this business and more people are getting in into the rat race. So in order to outsmart them, you got to be a bit smarter first. Therefore, it is recommended that you work with some construction company for the first few years so that you understand the nitty gritty of the business. It takes time to learn something new and therefore you got to stick with the company for few years and not months. Check how to behave with the laborers, what compensation you are supposed to pay them, how things are coordinated and how people are hired. You also need to understand a bit of managerial and admin part where you learn the work of managers and know what they do to manage things so that it all moves so smoothly.

Knowing the work of admin will help you understand how the payroll things work. You do not have to know everything in detail. Just the basic understanding will do. You learn these things and can incorporate it in your business. Ideally big construction companies have people who advices the owners on these things. You may also need advices when you reach to that position but in order to understand their suggestions, you need to know what they are talking about. So knowing these things becomes crucial. Another important area that you need to touch is the procurement of heavy equipment and other raw materials. Also knowing where to dump the debris is crucial.

If you know someone who owns a construction business, you can start working with him to learn things. So work with him for few years and gain as much knowledge as you can and once you feel that you are confident enough to start a business of your own, you should take the initiative and give it a shot. You will get to know more things once you head up for your own business and may find the journey interesting and joyful.

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Be generous to pay operators with talent

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Companies normally pay more for talent. So a person who has acquired talent through years of experience and hard work should be definitely rewarded and he rightfully deserve every bit that he is paid. The construction industry is also known as a paymaster for people who knows the in and out of the industry and also termed as an asset to the company.

Through their experience they will be able to steer the future as well as the fortune of the company. They have seen different phases of the business and may know what to do under a given circumstances. When we look at the different levels in the construction industry we may find many people across genres who can be termed as efficient and people with immense talent. Right from a labor to an engineer every person has a role to pay and their talent is displayed by their work.

The talent and experience of an operator is nevertheless of immense significance to the construction company. The operator handles one of the most important parts of the business. He works on earth moving equipment and at the same time also takes care of it. He is the one who reports about any issues with the machine which is then rectified by a mechanic. He is also taken to task when a machine just stops working. His manager will want him to answer why he did not raise a flag when there was an issue with the machine. This means that he is suppose to take onus if anything goes wrong with it. So the operator who takes care of such vital things deserves to be paid more. The company should think about this seriously in case if they are of the opinion to save money on them.

Demand for talented operators does not perish:-

Since operators handle such an important department, the demand for their talent does not perish. Construction companies are always in the hunt talent with some years of experience in hand. They also check for candidates who have the will to learn more about his work. Someone who just does not want to stop learning is probably the man they want to have in their organization. Such men will always be in demand for what they owe and how they can shape up the future of the company.

There are few operators who take charge of the entire fleet of heavy equipment and ensure that nothing goes wrong on any given day. So if you ignore their hard work and pays them less than what they deserve, they may soon switch to a company that acknowledges them for their talent and hard work.

Companies who pay well have performed better:-

It has been noticed that companies who pay well to the deserving operators perform better than others. Their growth structure is on the upwards scale. If your operators are content with their salary, they may go out of their way and may give suggestions that will prove to be highly beneficial to the company.

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Patience is the key for any construction business

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The ground rule of any business being big or small is to be patient and hit hard when you get the opportunity. Business is all about different phases. You may be doing well in your business but soon you will discover that things are not going well for you and with each passing day you see things moving out of your hand. These are instances that test your nerves and check how calmly you can manage situations. You should not get paranoid and let the situation take you on a royal ride. On the other hand, take control of the situation and lead from the front. Ups and downs are parts and parcel of any business and one got to deal with it quite maturely. Throwing tantrums may not be the solution. Complaining about things may again not be the viable option but taking complete charge of the matter may take you out of troubled waters.

Patience is required the most when it comes to businesses that are volatile in nature and are mostly dependent on market forces. So if anything goes awry in the market it may have a lasting impact on the business as well. This means that you got to keep your nerves cool and face the situation as it comes. Construction industry a matter fact is one such industry that is known for its volatility and is easily affected by the market forces. Since you do not have any control on the market, you just have to move with the flow. The one thing that you need to take notice is of picking the right things while you move on. When things are tough, you better lie low. This is where patience comes into picture. You may be quite an aggressive person when it comes to business but at times you need to replace your aggression with calmness as it does not do well at all times.

Being aggressive in an industry like construction is often considered as a virtue and not many can maintain the same aggression throughout. They often tend to be aggressive in the beginning but in the mid they begin losing it. This is in no way a positive sign for a construction company. Similarly, when there is high unpredictability you got to give upon on your aggressiveness as well and try to remain patient till you see the right time to hit back.

There have been numerous instances of many huge construction companies going bankrupt as they maintained their aggressive policy when it was time to remain calm. They were of the opinion that they can’t shed away the natural instinct of the company which was indeed the primary reason of their debacle. They could have stayed down for a while and waited for the right moment. They severely lacked patience. It is somewhat difficult to stay afloat in turbulent waters but once you manage to take the right decision during wrong times, things becomes smooth once the phase gets over.

Retiring from military, go into the construction domain

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People leaving the military are ideally absorbed in any other industry without much hassle. The only condition is they need to have the required expertise to do the job. So if a person who has served the military for years and now wants to lead a civilian life can get ample of opportunities and can make a bright career in any industry that he find himself to apt with his abilities. Mostly men after leaving the military join the construction industry. The reason is that they have been operating heavy equipment while they were there in the military and since they are so used to working on construction equipment that they can’t see themselves anywhere else other than this sector. At the same time, this industry really pays well to its employees. An operator can earn real god money if he is experienced and has worked on quite a number of machines.

Discipline is in their instinct:-

While serving in the military they learn one thing on a daily basis and that is being disciplined. So when a person is a disciplined, rest everything falls in place. He will understand the importance of his work and will never take anything casually. He will remain focused in his job and will have the determination to complete the job within the prescribed timeframe. A person lacking these skills becomes a burden on the company and therefore the construction companies also look for operators who have served the military so that they can give priority to their work and complete it within the given deadline.

Experience in working with more machines:-

People in the military work on different kinds of construction machines. Some of the machines are not used in the construction industry by private construction companies. It could be because the military give orders to produce customized machines that are meant to serve their specific requirements. So the men who have worked on construction machines have undoubtedly worked on the best of machines in its class and therefore have experience in handling them in rough terrain, sliding zones, mountainous region and places where ideally operators find it difficult to work with machines. Just because they are so used to working in such hazardous terrains, they become the first choice of the construction companies.

Can open their own construction company:-

A person after retiring from the military can even start his own venture in the construction domain. If he has hands-on knowledge of working with machines, he has won half the battle. Since he has retired from the military, getting loans sanctioned will not be a difficult task for him. All he needs to do is get the necessary documentation done and start the business. Clients will also have more faith on him knowing that he is an ex-military officer and will have high regards for him for having served the nation. Therefore getting work will not be much of an issue. Moreover, jobs like demolitions are somewhat easy to get. So if you have the right equipment with you and know how to operate it, you can make it big in this form of a business.

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Cost cutting measure is important in construction business

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Every industry has its share of good and bad days. So when they are enjoying their good days it is crucial that they keep enough reserves for any possible decline in their business and when they encounter any fall then they should be quick to adopt cost cutting measure. It is been widely observed that companies take time to adopt cost cutting measures due to which they get themselves into deeper mess and eventually some has to wind up their businesses.

Cost cutting measures do not primarily involve sacking employees though that is considered as one of the measures but that should be the last option. By sacking employees, you will be losing resources that have been with your company for many years and who know the business well. When the tide will turn, you again have to recruit new guys and train them. You may not get back the same human resources that you had sacked once. So keep that as your last option.

Bring down unnecessary expenses:-

You got to track down the overall operating and non-operating expenses in your company and have to cut down the costs that you feel is completely unnecessary. If you check your records, you will come across a lot of such expenses that should not have been done in the first place. Since you never bother to check the records, it must have occurred but this is what you need to curtail. You need to cut down all the expenses that are either not needed or not much needed by the company. Only spend the money on important things and things that are absolutely necessary for the smooth running of the business.

Rent out or sell heavy equipment that are redundant for your business:-

If you take a day’s time and check which all heavy equipment are indeed functioning, you may be surprised to know that out of the entire lot of heavy equipment you possess, you use only half the machines for your projects. Rest of the machines are not working but you still spend a good deal of money on maintaining them. That is again costing your business. Hence, it is important that you take stock of the heavy equipment that are not in use and may remain out of use of many more months so that they can be rented out to guys who need them. In case, if the machines have gone redundant, then it is advisable that you get rid of them. In this way, you will make some money for your business.

Sack employees if you really have to:-

Well, this should be the last option in your kitty. You can do this only if you feel that this is the only step you have to save your company from getting wrapped up. However, you have to take immense care before you lay off your employees. It is important that you remove people who are not good workers and often have been a pain to the company. Check their performance sheet and then take a calculated decision. Remember, once you lose them there are not much chance to get them back.

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Not losing focus is the key in construction industry

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To grow in any form of industry one needs to remain focused throughout the time he is in the business. He can’t afford to allow his thoughts to wander in some other direction or simply get distracted by something else. Any sort of distraction can turn out to be quite fatal for the company. For an industry like construction where there is cut throat competition throughout the spectrum, one can’t let his attention get diverted to anything other than his business. No wonder that there are other things than business that one needs to take care of in their daily lives. But any personal problem should not act as a barrier towards the growth of your company. There are examples of people becoming rich by being focused and disciplined and also examples of people who lost everything because they could not manage their personal as well as their professional lives.

Helps you to take the right decision:-

In the construction business, whatever decision that you take should turn out to be the right one because if it goes wrong, it can have a lasting effect on the company that you hold. Guys who are not focused tend to make series of errors while taking decisions and it ultimately results in incurring severe loses and even winding up their business. If you are completely attentive to what is happening in your business and the external forces that is affecting the industry as a whole, you will know what should be your next move rather than just letting things to happen. It means that you are in control of your position and are leading from the front. This also boosts the morale of your investors as they feel that you are the guy with a vision and can’t get easily diverted.

Updates your knowledge:-

You always need to keep yourself abreast with the latest updates that are pertaining to your industry. The kind of volatility that is engaged with the construction industry makes it mandatory for you to have all the updates with you. You can keep the necessary information on your laptop for reviewing your business plans that is so strongly dependent on the external market forces. Being focus will draw you closer towards achieving your business plans which is possible only when you have correct updates about the industry.

Make rapid changes in your business plan:-

When you are dealing in a volatile environment where things can go wrong in any minute, being attentive always helps. For instance, you took a decision and on the basis of it things are progressing. However, all of a sudden you get to know that due to some unforeseen reasons you have to revamp your business plans. If you are not focused enough, you will probably not even come to know about any such changes and you may continue with the same old plan. Since you remain absorbed in your work, you were able to pick the odd at the right time and could revamp your plan. Focus has become key to run any successful business.

Make your heavy equipment worth for resale

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Many believe that heavy equipment has a good resale value but it mainly depends upon how you have used your equipment over the years. Ideally, heavy equipment is a long lasting thing and it does not require care round the clock. On the contrary, if proper maintenance and servicing is done at regular intervals then it will certainly last for years without any problem to its owner. Nevertheless, knowing the nature of the machine, many owners tend to use it in extreme rough conditions without even bothering to service it. Now that takes the toll on the machine and from there it starts giving problems. The owner needs to understand that if he wants the equipment to work properly then he also needs to take some effort in getting it serviced on a regular basis.

It may be simple to get a resale value for the heavy equipment but it is also important to keep your machine worthy to get a good resale value. If you want to list your item for sale you have to describe it well in the advertisement and must mention if there are any defects or issues with the machine. You should not skip that part and move to the next. The prospects would like to know more about the item before they make the decision to buy it. In case, if your machine is not up to the mark then you may not write good about it and that will deter prospective buyers to move away to the next listing listed by another seller. Though you are getting the viewership, it is not ultimately helping you to close the sale and it is all happening because you have not taken good care of your machine.

Employ a qualified operator:-

It makes more sense to pay more and hire a qualified operator who has good amount of experience under his belt and who can understand the machine better than anyone else can. Hiring a newbie may not be very beneficial to you in the long run as they may learn to drive the equipment and get the work out of it but will not understand if there is anything wrong in the machine and will only report it to you when it completely gives up. Hiring a newbie may cost you less as compared to an experienced one but down the line you will get to know the difference. Therefore, it is better to be cautious and spend a bit more rather than being sorry.

Give it to a mechanic once in every 2 months:-

Your machine may not need any maintenance work every day or every month but you should make it a point that you get it checked by an expert mechanic at least once in every 2 months. That will only help in increasing the longevity of the machine and when you feel that you want to upgrade it by selling the old one, you can expect a good price for it.

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Expanding construction business by ignoring your finances should be avoided

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After you have started your business, the next thing that runs in your mind is how you can expand it and what are the things needed to expand your business. However, with every expansion of business there also comes certain amount of risk that one needs to consider before they go ahead with their plans. It has been witnessed that people who are too quick in expanding their business are also prone to fall sooner. The reasons could be many but one very basic reason is that they skip the most important aspect and that is their financial stability.

Switching the focus to the construction domain, this industry is all the more volatile and it keeps on fluctuating once or twice every year. In this situation, it is very tough to foresee things and estimate anything accurately. People may tend to may numerous mistakes if they take the chance of estimating the market position and may fall flat on their faces. Moving steady may be the key but something that is more important is to know the reserves you have and if it is sufficient for the expansion plans that you have planned.

Expanding the construction business implies that you have to shell out good sum of money to acquire heavy equipment which is perhaps the most expensive item in your list. Other will be paying salary to the additional employees that you have to hire and taking care of all the other operating and non-operating expenses that usually happen in a business of this kind. So before you give a go to your plans, it is quite imperative to sit down and share a thought with your peers letting them know about your plans and chances that you have to take in order to materialize your plans.

Having a word with others on this subject will be very beneficial for you as you will come across many thoughts and ideas that did not strike your mind while you had to go through the thinking process. You can also get some real valuable advices from them that may change your plan a bit for good. Nevertheless, you will understand few intricacies that you probably missed and will work things out in your favor.

Discussing about the company’s finances with the financial department will also be beneficial for you as they will be in a better position to advice you on the current financial position of the company and if the company is ready to take any such risk which if does not work can prove to be quite drastic. You can ask them to prepare a report of the financial standing of the company and that will help you to have a bird’s view on where your company is standing.

It is only after you have gone through all these rigorous deliberations and consultations from the employees of various departments that you should take the final decision of investing in more money in your business or should wait for some more time.

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Construction business is all about accepting new challenges

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You be in any form of business, you will always be exposed to new challenges; at times from inside your company and most of the time from outside. It is very important that you know how to tackle those challenges and come out with flying colors. Every challenge brings 2 things along with it. One is an opportunity to do something really outstanding and the other is a calamity that has the ability to end your business forever. It is up to you how you take it up and work things to turn the challenge in your favor and turn it into an opportunity.

Construction industry is one of the many industries that have lot of thrills in it. It may give shivers to you but if you stand firm during the crisis, it will also reward you. Many people have taken their business from rags to riches and there are few who have stumbled badly and have fallen flat on their faces. People who were able to make it were go-getter and were not afraid of taking calculated risks. In other words, they took challenges as opportunities and made sure that they overcome all difficulties and shine like a star.

Few crucial things that one must keep in mind which will be helpful to accept challenges in the construction business.

Have a concrete strategy in place:-

In order to accept challenges, one must be ready for them in the first place. Laying down concrete strategy and working on them can help you in many ways to face any challenge in your business. You should be ready with a “Plan B”. Problems will come without giving a knock at your door but you will be able to surpass them only if you can foresee them and lay an appropriate plan to counter them. While you put up a strategy, take into consideration the minutest of things. You never know the stuff you leave turns out to be the most crucial part of your plan and things may go for a complete toss.

Try to have good rapport with your competitors:-

A wise man keeps his friends close but he keeps his enemies closer. Well, your competitors are not your enemies but you still got to maintain a good rapport with all of them. Not all competitors are bad and they understand that in order to survive in this business, they should remain united rather than tumbling by becoming an encumbrance for each other.

Try to maintain a strong financial standing:-

Challenges bring along a lot of pressure with it and no pressure is bigger than the thought of not able to face the challenge due to scarcity of finances. That will pinch you all throughout your life. Always ensure that your finances are in place and you have enough reserves to take care of any contingency. Be it buying some additional heavy equipment or deploying more workers for a new site, your financial requirements should be met at all times.

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Make way for new talents in your construction company

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Talents are much needed resource for the growth and development of any economy. So right from running a small grocery store to operating a mighty construction company, the need of fresh talent is highly important. It has been witnessed that companies ideally want to hire experienced people rather than picking up young boys for the job. They feel that the experienced lots know their job well and will fulfill their duties honestly. They for some reason do not have the same faith with the young population. Well this is not a healthy sign because after a certain period of time you will face shortage of employees and will then be forced to hire guys who know nothing about the work you are engaged in. Therefore it makes more sense to hire young talents and train them so that they can become an asset for you and contribute towards the growth of your company.

There are institutions that train the young guns on heavy machinery. They produce competent operators but the only thing that they lack is experience. They can’t gather experience if they do not get the opportunity to work with some company. All they need is a chance to display their talent. They may induce new ways of working that can prove to be beneficial for the company as a whole. So when you see that your company is growing and you need men to work, make way for young talents. Similarly also hire experienced guys but the number of experienced and inexperienced guys should be proportionate.

Since the young guys lack experience, all they need is bit of support and they have the ability to stand on their feet. They need a bit of help from the guys who knows the work and this is how they can mold themselves into a better workforce. Hiring new talents is also beneficial in terms of saving revenue for the company. You do not have to pay more for their services as they are in learning mode. That does not mean that you have got the right to exploit them. The wages should be discussed with them and should be at par with industry standards. You can then check the ones who are performing and should simultaneously increase their wages. Pay them for their hard work. They truly deserve every bit of it.

Being the owner of a construction company, you should give clear instructions to the tenured guys on how they should behave with the new ones. Instruct them to be polite with them. They are bound to make mistakes as they are in the learning phase but that should not give the experienced lots the opportunity to take the young guys at task. Your instructions will ultimately make a favorable condition for your employees. They will regard your values and will hold you high. The policies of the company pertaining to new talents should be crystal clear and you should ensure that they are followed religiously.