Tag Archives: Construction Business

Construction business is a dynamic business – Do not take decisions alone

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Whenever you are about to take an important decision in your life, it is prudent that you have a talk with your near and dear ones or the ones whom you trust that they can help you cross the challenge with their expert advice and then take your decision. If you skip taking any advices from people, it may so happen that you start doing something without knowing much about it and end up endangering your life or career. That was about life and so it is with your business and especially when you are dealing with a dynamic business like construction, you got to be all the more cautious about what you are doing. Any incorrect step can prove very costly to you and also to the people who are connected to you with your business. Construction business is quite dynamic in nature:- If you have set your foot in the construction domain, you have probably entered into one of the most dynamic industry of today’s time which is dominated by players who are pretty old in this business. They are also the one who has a bit of hold in the construction market and can change things to their convenience. Having said this, it does not imply that they can play around with things as per their whims and fancies. That is never the case and will also not be feasible in the future. The construction sector is influenced by large number of factors and the big players are just one small factor. Other than that, you got to be cautious about other factors as well that has the potential of causing enough harm to your business if ignored. Expert advices are needed in every stream also in construction domain:- You may have spent quite a good number of years in the construction business, yet you may find yourself in a situation where you may need advice from people. It is not that you do not know the way out but it is just that you are tensed then and may not be able to pick the right way out. Therefore, you may need some consultative talks from your peers and people you know in this industry from a long time. They should be the right guys who can give you appropriate suggestions and may get you out of a mess. Taking decision along can be harmful. Take people along:- When you are taking important business decisions, it is very important that you do not skip the presence of other people working in your company. They are the ones who can come down with valuable advices, something that you may have never thought about and after hearing them you may just wonder “how can I skip this?”. Well, a single head may not be sufficient to take all the load of a business and therefore it is better if you can share the load with other trusted people in your company. That will set things right for you.

Engage with your employees to make a construction company successful

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The success of any business is sheer hard work and the way you engage with your employees. Working hard is just one part of the success story but there is more that makes a business successful. People owning a construction business may understand the importance of talking regularly with the employees. They got to check if the people working in his company are happy working there or do they need any sort of benefits or require any upgrade in the heavy equipment. Not talking with your employees on a regular basis can make them feel that you do not care for them any longer and you only need them to get your work done. That actually puts you in a very negative frame as people may take you as a self-centered and selfish person. Therefore, you should make sure that you come down to meet with your employees at least once in a month and check about their well-being. It is not possible for you to remember each and everybody’s names but try to remember few of them. This might give them the feeling that you indeed care for them.

 

Engaging with your employees can be fruitful to your company in a number of ways.

It sets up a long lasting bonding:-

Setting up a healthy relationship is important for the success of any business. It is very crucial to set up a strong bonding with the people with whom you will be working day in and day out. It may be possible that you would be working from a remote site and would be monitoring their performances from that location but still you will be part of the same team that aims towards taking the company to the zenith. This motive of yours is only possible if you establish a strong bonding with your employees. They are the ones who have the potential to make or break your company. See that all their needs are fulfilled and they return home happily with the enthusiasm to come again to work the other day. If you engage regularly with your employees, it will help in setting up the bonding that is needed for the success of your business.

Employees will be dedicated to their work:-

A person can work hard only when he is dedicated to do so and what will make your employee dedicated towards his work. The answer to this lies again on the way you set up your relationship with them. If you are in good terms with your employees and do everything to keep them happy, they in turn will be more inclined to their job but if you are not good with them, they might act as a troublemaker for you. That is no way going to be healthy for your company and you should avoid any situation where there is any confrontation with your employees. On the contrary, you should seek ways by which you can solve their problems if they have any and try to get them back to work.

 

 

 

 

 

 

 

 

 

 

 

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It is a good idea to promote your business on social networking websites

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We are seeing an increase in the trend where people are promoting their businesses on social media like Facebook, Twitter and stuff. They find it to be a spectacular way to reach out to a good chunk of population at a shorter pace. You can simply calculate the number of people seeing your work if you have more than 600 friends in your list. Your work will also be seen by people who are your friend’s friend to whom you perhaps do not know in person. However, they also get the chance to see your business and if needed will hire your services.

These social media sites also play a major role in the growth of the heavy equipment and construction industry. For instance, you work for a heavy equipment company and are given the role to sell machines. You can easily place your ad on LinkedIn or Facebook and check the number of people who are interested to know more about it. Unlike Facebook, LinkedIn is used by people for professional requirements only. So it makes more sense to have a LinkedIn account and post the ads of the machines that you have to with you sell. You can also use the logo of your company so that the prospective buyers know in advance with whom they are dealing with. That also gives them a sense of security that they are in right hands and there is not any scam involved.

Other than this, if you want to recruit any operator or engineer, you can put your requirement out there and that gets passed like fire in the wild. You will soon get messages from people who are looking for the job and that gets your job done without you having to pay a single cent for it. There are millions of LinkedIn accounts and getting someone suitable for the job will not be that difficult. You can also make use of the website to hire technicians, managers for various roles etc. It may soon happen that these social networking websites may overtake job search engines or the job search engines have to work in tandem with these websites.

Now if you already have an account that you exclusively use for your business needs, it is very important that you keep that account professional. Avoid uploading any casual snaps or pictures that you have taken in some party. Your business account is not meant to accommodate those kinds of pictures. You can make use of your personal account for that purpose. You should put pictures of some new construction equipment that your company has launched in the market or if you have some news that you can share it in advance, you can put that story in your account.

Never overstate yourself in any social media website that you use for your business. If people get to know that you have overstated or exaggerated things it will give the impression that you are there to cheat. Be true to the readers as they will be your prospective clients.

 

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Low diesel prices helping the construction industry

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Construction industry is largely dependent on heavy equipment and one the most important factor that contributes to the profit making of this industry is the low diesel prices. If heavy equipments will consume fuel that is sold at a lesser price, the construction company as a whole will be in a position of making real high profits. The price of diesel plays a major role in giving a good shape to a construction or for that matter any industry that uses heavy equipment to a larger extent. Many companies are still in the process of acquiring heavy equipment that are reliable, competent in working for long hours and also that consumes less fuel and is more productive.

So when we have machines that are designed to consume less fuel and be high on productivity, it will be an incentive to have fuel at lower prices. Companies that possess such machines can experience high profits year after year. However, the crux of the matter is that diesel prices do not remain same all the year. It tends to fluctuate quite many times in a given year and that is what comes into play and cut down the profit percentage. As long as the diesel prices are in check, things are in control and all are in a merry state of mind but once the price starts soaring, construction owners’ starts getting cold on their feet. Thus it is proven that the construction companies are at their best when the prices of diesel are low.

Boon for small construction companies:-

When the diesel prices are low, it is almost a sort of boon for the small construction companies. They can’t wish for anything more. The problem that many small construction companies experience is that they can’t afford to buy heavy equipment that consumes less fuel and is high on productivity. Such type of machines are extremely expensive and often out of their budget. Therefore they have to do with construction equipment that are either used ones or not that advanced and such type of machines tends to consumes more fuel. In a situation in this, they can’t wish for anything more than to see the diesel prices at the bottom.

Eco-friendly machines are way too expensive:-

Heavy equipment manufacturing companies are also producing machines that are eco-friendly. They call them green machines. They emit low intoxicants as compared to diesel run machines. The catch is such machines are very expensive. Since they are in their initial phase and also contribute largely towards the betterment of the environment, the manufacturing companies have decided to keep it at a higher range. Thus, such machines are not in the range of all the construction companies and only few giant companies can afford to have them. This means that the ones who can’t buy them have to work on machines that run on diesel and therefore they will find it very helpful to buy diesel at a lower price.

7 Simple Tips for Young people starting a career in Construction

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When one thinks about beginning a career in the construction sector, he needs to be pretty sure what he is getting into because though this industry rewards people who work hard to achieve success, it also punishes those who are not able to perform. So one has to be sure which side he wants to be in. There is no rule book that one can follow to make a career in the construction business; it is just that they need to be patient enough and follow what is right and ethical. They won’t be able to taste success in a year’s time. They got to work hard and if they feel that things are not working right for them, then they need to work harder. Follow the right path, devote yourself completely and you will see things working out for you.

Give a thought before you finally pull the trigger:-

You should not want to make a career in the construction domain just because you see your friend’s dad making huge sum out there or you see one of your relatives doing good in his business. That should be a motivating factor for you as they all must have worked extremely hard to get to the place where they are now but that does not mean that you should do exactly what they did. You can get success in anything that you do provided you give your 100% to your work. So before you decide about walking in this industry, think if you really want to stay here for your entire life or else you will end up wasting couple of years of your life into this.

Know more about heavy equipment:-

Knowing about heavy equipment is very important if you want to be in this business. You should know which machine is used for what purpose and accordingly you can take decisions on procuring heavy equipment.

Check your finances before you go for any procurements:-

Starting a business in construction sector is no child’s play and it requires huge amount of investments. You therefore need to check your finances before you go ahead with any procurements of construction machines. You also need to keep into deliberation the operating and non-operating expenses that may incur while you are active in your business.

Hiring competent operators is the key:-

Ensure that you hire competent operators who are experienced in working with different kinds of heavy equipment. They are the ones who also know what needs to be done to keep the heavy equipment healthy.

Try to generate contacts by picking up small projects;-

Since you are new to this business, it is pretty evident that you will not be able to bag big projects as the giver won’t have the confidence in you. Simultaneously, it will not be feasible for you to handle big projects if you do not have any experience in handling any projects. It will be complete chaos. Therefore, pick up small works and try to complete them on time. This will help you to gain experience and simultaneously you will also develop contacts.

Be honest and ethical to your work:-

Honesty and ethics are very important in a business where you are dealing with your client’s trust. Be honest with your work and maintain ethics while conducting our business.

Engage with your employees:-

Always maintain a good rapport with your employees as they are the ones who will work hard with you to give a good shape to your business.

 

 

Modern heavy equipment are the need of the hour in the construction business

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The construction business has always been a competitive zone and it has been observed that more and more people are getting into this industry making the competition all the more difficult. With new competitors in the market who are ready to take bigger risk, the one with more experience are having a tough time dealing with the fact that there is an urgent requirement of sophisticated heavy equipment to sustain in the competitive environment. There is only thing that can keep you above from the rest and that is technologically advanced machines. Your machines should be capable of doing work that others take days to complete and if you possess such machines then you have more chances of getting big projects that has huge profit margins. At the end of the day, it is all about the quality of work that you give to your clients that will decide the existence of your company.

Follow the best brands in the market:-

Technologically advanced machines are manufactured by many heavy equipment companies. However, the difference lies in the quality of those machines. Not every machine manufactured by different set of companies will deliver in the same manner. Some will last long enduring the same wear and tear and others will give away sooner. So you have to decide which one will be yours. Often the heavy equipment manufactured by the top brands lasts longer than their counterparts and therefore that should be your first choice. You can then do your own research and nail the one that suits your requirements. However, it is critical that you go for the top brands and not with companies that does not have significant name in the heavy equipment industry. Other than that, you can expect decent resale money if you sell machine of branded companies but can’t expect the same from a non-branded one.

Though expensive but worth the price:-

The technologically advanced machines are quite expensive given the ease and comfort it provides to the user. It is agreed that such machines are not affordable to everyone but at the same time also not beyond the reach of people who seriously want to upgrade their arsenal. The user will undoubtedly find it to be expensive but at the same time they will also feel that it is absolutely worth the price. If it is an absolutely out of budget case, one can opt for the smaller version of such machines. They will not cost much and also will be within the reach of many. It can act as a substitute for the larger version.

Real comfort for the operators:-

It is the operators who go through the pain of operating the machine. They have to take immense care when they are working with equipment that is not much advanced. Any mistake from their end can result in a big casualty. They will always appreciate if they are given machines that are simple to operate and does not need too much of their attention. They call them intelligent machines and they need such machines for work.

Construction industry is rewarding – Don’t let other to eat away your business

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We all want to make good money and want to make it real quickly. This is probably the reason why we choose industries that are more rewarding than others and stick to it so that we can grow our business like anything. However, in the entire process we should not forget the fact that in order to set up a business, it takes hard work, determination and a good strategy to ensure that you keep away your competitors from taking away any pie of your business.

It is pretty obvious that the industry that pays us dearly is not restricted to few businessman and others would also want to join in. So you never know from which way you will find a competitor coming up and latch on to your clients thus affecting your business. Thus it is important that while you are running your business successfully, you also keep an eye on the activities of your competitors and check if there is any new one getting in or any existing getting out of the industry.

One of the industries that have given huge profits to its owners is the construction industry and many people want to give it a shot in this sector. Though it is no child’s play to start a construction business and require huge investments, people still flock in to try their luck and it has been often seen that they hook on with this sector for few years, take up some projects and if things click for them they continue with it or just exit when they feel they can’t move any further. So if you have a set business and you see any newbie flocking in your territory, you got to ensure that he does not eat a big piece of your cake or else you will be left starving.

You can’t really do away with competition as it is a part and parcel of any industry but what you can do at the most is keep a check on your competitors by ensuring that they do not overtake your business and you can do that only by having a clear goal of providing top notch quality work at an affordable price to your clients. No clients would like to go to a new guy as long as they find you doing a great job. They would rather like to stick with you since they know your style of working and have a good rapport with you.

Setting up a good relationship with your client also works in times when you have too much of competition. Your clients will not give work to anybody else if you have an extremely wonderful relationship with them. Nobody like to experiment things when it comes to their business and hence they will want to continue with you provided you being good with them.

Experience matters a lot in this industry. Clients usually prefer to give projects to people who are experienced in the construction domain rather than trying the newbie. Therefore your experience will always come handy when you are experiencing extreme competition and will still find yourself in the position of bagging more projects.

 

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Maintaining good relation can be helpful to get construction business

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The construction sector is a business of huge competition where you are always in the race of surpassing your competitor so that you can get more business. However, having said that, it is also very important that people belonging to this kind of business have and maintain good relation with each other. You will need the help of the other person at some point of time and in case you do not have a healthy relation with the next guy, you may land into a temporary trouble. In many cases, businesses also come through references. So it means that somebody has spoken good about you and has referred the business giver to you. Now that can be anybody. Right from your client to your business competitor, it could be anybody and yes you heard it right. Even your business competitor can at times be helpful to you only if you share a healthy rapport with him.

The few basic pointers that one should do to create and maintain a strong bondage from people concerned to your business.

Do not try to eat away everybody’s business:-

Undoubtedly, the construction business is quite a tempting business that will entice you to get more and more businesses. While you are in the mode of getting businesses, ensure that you do not become an encumbrance into someone else’s business. You garner businesses on your merit and not by bribing someone and if you see any of your competitor who is not in good shape and trying to get the same project, try to let that go to him. You may not want to eat everything that you get. Let the other guy know that he deserves the business and which is why it has gone to him. He will appreciate your help and will someday return your favor. Please understand that while you are in the construction arena, you will have both good and bad phases. It all depends how good you have been to people when things are good with you. Your generosity will help you during your hard times.

Establish yourself as a clean businessman:-

Being a businessman who causes no harm to others is liked by everybody in the business circle. No one likes to be in the company of a chap who is way too greedy and has the potential to cause damage to other’s business. Good clean people always have a place in everybody’s heart and when you are good to people then you have fewer enemies to bother you. In this way, you can establish a healthy relationship with people sharing the same business and at times can also get some favors from them.

Too much of gluttony can be harmful for your business:-

You must not keep your mouth full that you find it hard to chew. Concentrate on the quality rather than giving more attention to the amount of businesses you are getting. You will get more business on the basis of work you do. If you just keep on adding work without being able to complete them, it will become utterly chaotic for you to handle. On the contrary, you can suggest few names of your competitor who are known for their quality work and in this way you create a good relation with them.

Laying proper strategy can change the face of your company

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The one who can lay down concrete strategy and can walk on it will be able to reach the pinnacle. Setting up concrete strategies by foreseeing the obstacles and opportunities is an art that not many can master but the one who can anticipate and work accordingly can reach new heights. If we see what it took for owners of huge conglomerates to come to the place where they are, they will credit it to the fact that they could envisage things. They were able to foresee the threats the company could encounter and on the basis of that they worked things out. They chalked out plans keep the threats into consideration and made sure that all of them stick to the plan.

This kind of an approach is very important in an industry like construction. People belonging to the construction industry often encounter stiff competition from their business rivals and in such a situation it is quite essential that they anticipate the risks well in advance and take necessary steps to get over them. Now once you have anticipated the risk, the second important step would be to formulate plans that have the potential to mitigate the risk and bail the company out of any misadventure.

Setting up of appropriate plans and success goes hand in hand:-

As long as you do not have the right strategy in place, it is very difficult to find success. You may try every possible thing and work very hard to attain success but it only comes when you have a set plan in front of you. You got to think what should be your next step, what you need to achieve next and keep pursuing it unless and until you get it through. Success comes to those who have a set vision and have laid concrete plans to get what they want. It absolutely goes hand in hand with a real tangible strategy.

It boosts the confidence of the investors:-

Construction industry is heavily dependent on investors. You can’t take a big project alone and finance it completely on your own. You need people to fund you at regular intervals. Investors are a big requirement as far as the construction industry is concerned and you have their attention only if you have a tangible strategy in place. You can discuss your plans with the investors and see how they feel about it. It is not necessary that they will always appreciate your plan. It may have certain loopholes that you may have probably missed. Do not get dejected in case your plan is not liked. Try to customize your strategy based on the likings of the investors but make sure that they go in sync with the business requirements. You do not have to compromise to please people to fund you. Ideally if your strategy makes sense, it will definitely boost the confidence of the investors in investing their money in your project. Once they taste success, they will trust you way forward.

Growth of the construction industry is co-related to the economic prosperity of a country

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The growth of any business is directly related to the amount of effort one puts in his business to make it big. However, it is also co-related to the economy of the country. If the economy is sluggish, you can’t really expect much from the business, no matter how hard you work to develop it. You have to wait for the economy to gather some speed so that things work for you and you start doing well. It has also been witnessed that the economy is doing great. However, it is just few specific industries that are not performing due to certain policies of the governing body. This also plays a vital role when it comes to the development of the business. If you are also a part of the industry that is affected by the policies of the governing body then it may cause harm to your business as well. You may suffer hardships till the time the policies are not amended for the betterment of the industry.

Things are quite similar when it comes down to the construction industry. This industry does really well and favors everybody who is associated with it when the policies are favoring it or when the economy in a whole is doing well. But when we check the flip side of the coin where the policies are against the construction industry or the economy is in a pathetic state, the same industry that was booming and was favoring a whole lot of people can turn upside down for everybody. This however does not imply that one should shut shops when the industry is not doing well. It is also not practically possible to close the construction business at the time when things are not going your way and to pick it up from where you left when things are back in shape.

The recommended option would be to go slow when the tide is against and ask the investors to hold on with their investments for some years (if you are associated with constructing condos). You can also take up small works/projects that come your way. When things are not working out for you, it is better that you stick to projects that do not have a good profit margin. That will at least help you to keep the company floating and you may not have to look for any cost cutting measures.

Just in case, you fall in the category where you are unable to get any business neither big nor small, it is prudent that you cut short on your costs by either renting your heavy equipment or if you feel necessary then selling the one off that you feel you may not need them any longer. If things does not become any better after taking these measures, then the last resort to keep your company floating would be to sack employees who are not so experienced but still have a good package. That will help a bit to cut down the cost and you can expect things to move on for few more months.