Tag Archives: Construction Business

Starting a construction company in another country

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Starting a business in your home country may not be a bigger problem as compared to doing it in an alien country. You know the rules and regulations that is required to follow if you want to start a business in your country but the rules changes when you move out of your country to some foreign location and think about starting your business there. Though it may sound difficult but there are many companies who have managed to successfully set their base in a foreign land and are doing really well out there. Starting a construction company may sound to be a difficult job but as a matter of fact many countries want foreign enterprises to come to their nation and be a part of their success journey. In return you can get to use their resources and also make good money out of the deal.

Before you think of setting up your venture in some foreign land, there are few things that you should know and implement it in your strategy.

Importance given to the construction domain:-

It is important to know the government’s determination and thoughts about the construction industry as a whole. Governments in some countries may focus on agriculture more than anything else. So it will be futile to set up a construction business out there. So try to know the government’s agenda for the nation before you try to set up anything out there. Some countries are rich in minerals so setting up a mining company makes lot of sense. For that you need to have a bit of experience in the mining industry or you know someone on whom you can vouch and can make inroads in that country. Many African countries are rich in minerals and they can prove to be a great destination for mining companies. They can see a lot of potential out there. As far as construction is concerned, there are many Gulf nations where you can set your business and can expect you go a long way.

Employment opportunities to their people:-

Getting permission may not be difficult if you can manage to convince the government that by allowing you to establish the construction business on their land, it will create lot of job opportunities to its people. It will also lead to the usher of other sectors. For instance, you can construct a pharmaceutical company or a commercial complex which will further employ more people. It is a kind of win-win situation for both of you. The government will for sure take this point and you will get the sanction to start up your company out there. You should also consider the taxation laws of the country and check if you can get any sort of concessions on it.

Legal advice is important:-

Every country has its own legal hassles when it comes to setting up a business. So you need to hunt down a competent attorney who can guide you through the different laws and advice you on how to avoid hiccups that may come your way.

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Do not lose out any opportunity to get more business

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Generally, entrepreneurs launch their business after identifying the opportunities which are feasible, commercially viable and environmentally sustainable. Most of the entrepreneurs begin their business with a small customer base and become successful. Although small in initial stages, it helps to build a loyal relationship with the customers. This also gives confidence to the businessman that the products are satisfactorily serving their purpose. The success gained at local markets enables the idea of further expansion of business to a serve a large population and to yield more profits. However, it requires the ability to identify the right opportunity and using marketing tactics, creativity along with good networking to increase the customer base. New business-building practices with a clear cut plan are a need for further industry expansion.

Following are some of the ways in which the locally established business can expand their growth to the global markets:

  1. Building trust: Businessmen should avoid narrow focus and use more tactics to obtain potential new customers. Trust building is one of the major ways to achieve the same.
  2. Increasing the network: After having established trust one should leverage it. Entrepreneurs should be in contact with existing network of businessmen and determine who can be most suitable for their product. The customers themselves can be referrals.
  3. Construction of a relationship map: This map of identified relationships will guide in the direction whom to approach for further expansions. Example: recognizing and having a suitable partner with good contacts with clients will help to increase business.
  4. Speaking at events or hosting a workshop at a business level: Whenever a businessman gets an opportunity to deliver a speech or host a workshop it helps to demonstrate a product in front of a wider population, and helps to increase the number of customers. This effort explains the value the product or service provides so that the customer understands it usefulness. However, speeches should be short and concise.
  5. Advertising: Speeches, blogs, newsletter, an instagram post, will engage the customers in understanding the product.
  6. Offer free trail of samples of the product: Free samples of products are good way to get new customers, to obtain their reviews and testimonials. This method gives more feedback on new products and allows improvements to be made. This practice instils the value of the product and how it is better that any other product.
  7. Conducting a case study: The case study” or providing a detailed account of the benefits of your service can be a great way to get new clients. It helps to built new business, since it assumes that the service works and that the customers are happy. It increases the brand exposure, builds trust and credibility within your field.

 

Overall, it is necessary to overcome thinking in old fashioned way and generate new ideas to grow exponentially in market. There is need to stretch and increase capabilities with current

Challenges are part of the construction industry. Learn to tackle them

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When you think of starting a business you should also be prepared to take on new challenges that will come along with it. Challenges are part of anything that you do for the first time. Even driving a car is a challenge for you when you are learning it. You got to learn about the gears and brakes and also need to have good control over all its functions. This can be a real challenge for you if you are first timer but once you are in practice it becomes a cake walk. Similarly starting a new business can throw a lot of challenges but it is up to you how to take them. If you take them positively and see them as a learning curve, you will learn a lot from it and will also incorporate it in your business but if you feel irritated or scared then it will take you down and there may be a time when you have to complete wind up your business.

Construction industry is in many terms a highly rewarding industry but at the same time it will equally make your life difficult. Life becomes more difficult during the beginning. You have to foresee many things that you have never tried before and also have to take your chances. You got to be a bit brave in your effort and while you are dealing with different situations. First and foremost you will have difficulties in understanding the construction business as a whole. You have to learn how the business works and that will take good deal of time.

It is important that you do not run out of patience because if you do then you have lost it forever. You got to remain as calm as you can and analyze how things turn out. You may find people who are close to you leaving you for better opportunities and you can’t do anything to hold them. Though you need them more than they do, you are unable to retain them by offering more money. This is one of the challenges that you have to encounter and got to successfully win. Attrition has been a big problem for many construction companies. So you are not the only one who will experience this. You should be ready for it and keep a back-up ready.

Marketing your company can be another challenge that you need to tackle especially when you are new to the business. Since people do not know you, you will find hard to get work. So be ready to see no work for few days and do not get frustrated. That will lead you nowhere. Form a marketing strategy where you deploy a team who will be actively marketing your company and the business activities you can perform. Take suggestions from the marketing team and provide them with all the necessary help they require. Start it from taking up small work and once you see money rolling in you can eye for bigger projects.

Dependability on training videos has increased over the years

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When it comes to heavy equipment, it is mostly about how well you know about the different kinds of machines that are used in the construction site. If you aspire to become a technician, it means that you got to know almost everything about the machine so that if you ever happen to work on one you should know how to open the stuff, fix it and put it back in place. It certainly requires good deal of training and loads of practice but apart from that it also require you to learn about machines right from the initial phase of your student life (from the day you join the technical institution). If you have your basics strong, it will certainly lead you to a good career. There are few things that you can do to strengthen your basics. First would be to read as many books as you can on machines and apart from that you can view lot of training videos that is available to you on the internet.

It has been witnessed that people find training videos to be far more helpful and informative. Some though find books to have answers for all the questions. As a matter of fact, it is perhaps the mixture of both that can help you achieve the knowledge on machines more than that relying on just one particular thing. Having said that, the dependability on training videos has increased manifolds over the last few years. This is the age of internet and therefore the reading books have taken a beating. People prefer to watch the training videos more than reading books. All they have to do is download the videos in a drive and play it on their computer. It actually allows them to see how to operate a machine. The visuals then remain ingrained in their minds and this is what helps them to learn.

Also for people who have poor memory and could not recollect things so easily, they can keep playing the video as many times as they want and memorize the stuff. Other than that, men who need some sort of help in one particular aspect can search for that video on the internet and check how that is dealt with. So you do not have to go through the entire book to find just one piece of information. Entering the keyword will do the rest for you.

Most of the training videos are absolutely free. This means that you do not have to pay a dime to watch them and learn. Knowing the complexities involved with heavy equipment, getting training videos for free is not less than a bounty. Ideally, people who write books also share their videos on internet and at the end of the video they try to promote their book so that others can know about his book and if they find the video fruitful they might even go for the book. Overall, online training videos has been a huge success making life simpler for millions of users all over the globe.

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Invest your money in construction projects globally

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When we think about investments, we come across all sorts of investment avenues that are liquid as well as non-liquid. However, not many consider investing in construction projects globally as a good investment option. There are strong reasons attached to it which is why people are usually deterred to invest in investment projects in a foreign land. One of the strongest reasons is that you do not have a direct control on the project and it may become difficult to monitor the progress of the work by being away from the jobsite.

Other than having a direct control, other reasons also include political turbulence, company getting dissolved. However, these reasons can’t be considered to be too big for one to deter investing globally and can always be worked out before you end up investing in one such project. There are of course few Do’s and Don’ts that needs to checked first before taking a decision of any major investment in foreign land.

Check the viability of the project:-

You can definitely invest in projects that sound to be viable. Alternatively, if the project has all proper sanctions from the different authorities of that country, there is probably no other reason why it may get blocked. Investing in such projects being in a distant place can still be a good option. However, you also have to check your benefit in it. You need to first measure your risk and the returns that you can expect from the work at its completion. It will be worthy to take such risks where you know that it will fetch good returns. There are many American investors that have invested chunks of money into various foreign projects. In this case they do not have to deploy their men for the work and if there is any hurdle that shows up during the tenure of the project that will be managed by the construction company who has undertaken the work.

Reputation of the builder matters a lot:-

When an investor has to invest his money in construction projects, he definitely checks the credentials of the construction company who has taken up the work. In the same way, while investing in a construction project outside US, you have to check the credentials first. Meet the representatives of their company, do some research on their previous projects. By that you will get to know how big the construction company is and if it is prudent to invest in projects constructed by them. The reputation of the construction company should speak louder than anything else and that should be the signal for you to go ahead with them.

Stay away from countries that are politically unstable:-

You investments in a foreign land will bear fruit only if you put your money in a country that is politically stable and there is no fear of the government getting overthrown by rival political powers or the army of that land. Investment of any kind in a politically unstable country is too risky and not even worthy to take the risk.

Having a good sales team can have a major impact on your construction business

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Sales constitute a major role towards the making of any company. If you have a good sales team that believes in the product you make, then your company may probably not see many bad days irrespective of any phase of the market. Sales play a dominant role in any sector as you got to sell things that you have produced and you got to do it real quick. Products staying with you for long is a not a good sign of development. You need to sell it fast in a market where others are able to sell things at a steady pace. Having a sales team that is experienced enough to sell apartments (if you are into construction of apartments) is a huge plus point. No doubt that you have to pay them handsomely but you should be pleased to do so if you have a team that delivers.

Many construction companies find it immensely difficult to sell apartments in a sluggish market condition. However, there are few companies that are clearing their stock despite of the poor market condition. Industry experts reckon that the sales team you have has a major role to play in getting the stocks cleared. It is also very important to set up some standard for the sales team to follow. A salesman can go to any level to sell a product. He may even misguide his customer leading to several complications in future. It is therefore very crucial that you set up some standards for the sales team and ensure that they all carry out their responsibilities within the framework.

The sales team should believe in your product:-

Be it selling heavy equipments or residential apartments, the sales team should believe that the stuff they are selling is one of the best in the industry. That does not mean that they should start believing that whatever they are selling does not have any drawbacks. If a customer highlights a drawback, they should be in a position to take the feedback positively and if possible can counter it with logical reasoning. If he does not have anything to say then just take the feedback and move that up to the higher level.

A good salesman will never have unwanted debates:-

Having any kind of debate with the customer can lead to a no-sell. On top of that, it may even irk the customer and he may pass it on to others. This will only make things more difficult. Construction business runs mostly on goodwill and if that is tarnished it is rather very difficult to regain what you have lost. Customers may usually have issues with the amenities provided in an apartment. A sales guy can handle the situation by having a word with his supervisor if anything can be done with the amenities part and convey the same to the customer. The customer will be content with the fact that you have at least tried to work things out for him.

A sound business strategy is the need of the day in the construction business

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We all get so fascinated by hearing stories of people who have successfully carved a career out of their business and dream to follow them, to become someone like them. There is definitely no problem to think like that but it is important to think what they did so different than others that they are so successful in life and what price did they pay and are we willing to pay the price if we too take up the challenge. If someone is dreaming to make a career in the construction industry, then he needs to prepare himself right from the day he has begun to dream and start making plans to achieve his dreams.

Having a sound business strategy is considered to be one of the most important component for becoming a successful businessman. Now, a business strategy is required in any sort of business regardless how big or small it is. However, if one is chalking out plans pertaining to his construction business, he got to be make sure he comes out with a real good plan. Following are few pointers that will stress on how one can set up a sound business strategy.

Strategize your plans based on the business requirement:-

Strategies are often made keeping into consideration your business requirements. For instance, you are planning to buy some heavy equipments. Here you will consider the price of the machines, the utility factor, the features it possess and most importantly does the project really require any enhancements as far as the equipments are concerned. If you find positive answers for it, you should go ahead with your strategy or else it is better that you continue with the existing heavy equipments.

Take opinions of experienced people:-

If you are running a small business, you should far importantly take opinions of experienced people before you start planning up something. If possible share your plan with someone whom you can trust. People who are experienced in the construction segment will give you suggestions that will help you a long way.

A good strategy is the result of good team work:-

In case, you have a big business where you are required to big decision that will have a lasting effect, you should involve people who hold the top positions of various departments. You put to them your vision and ask them to come out with some plans. Ask them to think about the opportunities and threats involved. Once they give you a detailed report, you can absorb them all in your plan. You have the big picture in front of you. You only need to give it a proper shape. Once you come up with a final plan, place it in front of the senior most people in the company and see how good it sounds to them.

Keep your strategy flexible:-

The strategy you have adopted should be flexible and not stringent. When things may not go the way you have estimated them to, you may have to change them. Your strategy should allow you the space to make changes.

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Role of a site engineer in a construction jobsite

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Every department in the construction jobsite has their own importance and non-performance of any of the departments can have a drastic impact in the overall functioning of the work. Right from the laborers to the project manager, everybody has a role to play and if the coordination amongst the departments is in order, work can be completed real soon. There is also a need to check the progress of the work and if things are moving as per the plan laid down. The job to monitor the performance of different departments and liaise to their needs is done by a site engineer. His role is not limited to just checking the performance of the several departments working in tandem with each other but have to take care of lot other responsibilities.

At times the work of a site engineer becomes hectic than anybody on the entire jobsite and he also becomes liable to answer his superiors in case if things go awry on the site. He is expected to have complete control on the activities of all the departments. For instance, if the operator working on heavy equipment reports an issue that requires the attention of a mechanic, it becomes the onus of the site engineer to ensure that the mechanic walks up to the jobsite and get the machine fixed. In case if it is not done or he misses calling the mechanic, he is taken to task.

Reading and comprehending the plans and designs:-

The layout of the plan is usually prepared by the team of project engineers. The site engineer can also be a part of the team where things are discussed and everyone in the team is aware of how to execute the plan. The site engineer has the capability to read and understand the diagrams and designs and the responsibility of getting the work done falls completely on his shoulder. Apart from the project engineer and the site engineer, there is perhaps none who has the ability to understand the plan layout and this is why the role of the site engineer is quite crucial. The project engineer work is limited to just chalking out the design and make necessary changes to it whenever required but he does not go out to communicate this to the other departments. This work is done by the site engineer.

Checking the supplies are in order:-

For construction work to move smoothly, it is important to keep a tab on the availability of supplies. You will never know when you are out of stock and therefore keeping the count of your stock is very crucial. The laborers are ideally engaged with utilizing the resources/stocks that is available. They might inform the site engineer about it or may skip that completely. But if the supplies get exhausted and the workers do not have raw materials to work, the site engineer becomes answerable. He has to ensure that the raw materials and other supplies are in place. Also if raw materials have been ordered and are in transit, he needs to check how soon it will reach the jobsite.

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Experienced men are most preferred in the construction industry

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We belong to whatever profession but it has been always witnessed that our market value increases as and when we grow older in the system doing the same job and learning more from it. For instance, a medical student after completing his studies practices under the guidance of senior doctors. At that point in time, he makes less money as he is in the learning phase but after once he completes few years in that profession and enhances his skills, the demand for his service increases and thereby his fee is also augmented manifold. What we get to understand from the instance is that a person who gets to experience different aspect of the business and learns things from them is the one who gets more opportunities in life and simultaneously also has more chance of earning good sum of money.

Medical profession is very different from the construction business and one who wants to make decent money after having completed their civil engineering or have taken up a course of becoming an operator can make their way in this sphere. It is evident that they will not simply start generating chunk of money from the day 1 but as and when they gets attuned to the work and understand it well, their marker price automatically rises. They CV speaks a lot for them and then moving from a low paid job to a higher paid one will no longer be a difficult task.

Experienced men have dealt with different situations:-

People who have dealt with situations in the past do know how to deal with them whenever they arise again in the future. The construction industry is full of situations where one gets to learn something or the other on a daily basis. They come across numerous situations and learn how to deal with them in an effective manner. A newbie joining this industry can expect going to new heights in his career if he manages to stick around in this sector. Ideally, it has been seen that people tend to move off to some other line of business as they are unable to tackle the pressure but the one who can take it up has no limit of growth as he keeps on learning things as and when situations arises and that helps him to grow as an individual and also increases his value in the sector.

They can be good mentors for the new joiners:-

A new kid joining this industry is often tensed as he is not aware what he may have to deal with and therefore he will feel relaxed if an experienced person can come forward and guide him through. There may be numerous obstacles that may come in one’s life but a mentor is the one who will equip the new joiners with his expert advices and make sure that they do not make the same mistake which he had made when he was one like them.

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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.