Tag Archives: Small contractors

Buying heavy equipment online is a boon for small contractors

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We often understand that construction industry is an industry where the owner ends up making enormous amount of profits but simultaneously we also fail to understand that the market is tough for people who are new to this industry or the one who lacks financial stability in their business. For such folks, striving hard and coming out of the misery is the ultimate solution. Right from getting big projects to hiring operators and workers, they got to struggle for every small thing. Other than that, they also have to strive to sustain their business from any external powers like competition, rise in the price of heavy equipment, improvement in technology and things thereon. One of the biggest factors that has become the hurdle for small time construction companies or contractors is the rising price of heavy equipment. They are finding it very difficult to overcome the rising prices of machines which is considered to be the lifeline of any construction business.

Small construction companies are left with very limited options as far as buying of machines are concerned. They either have to shell out good deal of money to buy at the price the heavy equipment companies are selling or have to consider the option of buying used equipment. They were suffering from another challenge of hunting for sellers who were willing to sell their equipment at a lower price until they were able to buy equipment online. Here they do not have to spend lot of time to search sellers selling the item they are looking for. All they got to do is key in the word in the search menu and start looking for the best deal.

Few things that a contractor should consider before he signs on the dotted line.

Check if the item is worth the value:-

Before you even think of contacting the seller, it is imperative that you do your research well. Try to know few things about the machine from people who has worked on it or from the internet. Try to know the price of the machine from different sources and then see at what price the seller is willing to sell it. You do this to ascertain the correct price of the equipment so that you do not end up paying more than what you should be paying. Once you are sure of the price, you can then try to bargain the price with the seller and check if he is willing to lower it any further.

Ascertain if the item is in good condition:-

Once you have fixed the price with the seller, the next thing you should do is to check if the item is in good condition. You will certainly not want to invest your money in rotten stuffs. Try to fix an appointment with the seller so that you can personally go to inspect the item. It is advisable that you go along with an expert mechanic who will check if the machine is in order. If only both of you are content with the quality of the machine, you can go ahead and sign on the dotted line.

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Challenges most small contractors experiences

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Like many other industries, construction industry is one such sector where beginners have a tough time while they give a start to the business. They got to understand the tricks of the trade and then play the game keeping its rules into consideration. Apart from this, there are always big companies that are waiting to eat up the small budding ones. They do want much competition to their set business. However, it is not always that you experience a direct threat from the old players but many have bitter experiences as well. Small contractors who are primarily fresher and do not know how to run the business can face horrendous situations due to their inability to tackle them.

We will be talking about some generic challenges that most newcomers experience and what can be done to do away with those challenges and end up becoming a successful entrepreneur.

Knowing the business:-

It is very crucial that you know your business well before you get into it. This does not imply that you should know everything about it. This may not be virtually possible for someone to know everything about his business first and then get into it. We all learn while we do something but before we start doing something as important as getting into the construction business, we should know the pros and cons of the business. You can talk to industry specialists about it and take guidance from people whom you can trust. Try to generate contacts with people who have been for a while in this industry. You can expect some good advices coming from them which might help you to steer your way in this business.

Do not overspend on anything:-

You need not have a swanky office if you intend to become a contractor. A normal office will do. Clients check your work history to give you contracts and not the sort of office you have leased. Also, do not go on a buying spree for heavy equipment. They form an integral part of the business you are getting into but your selection should be on the basis of your requirement. You can also take machines on lease. So you do not have to necessarily buy heavy equipment to work. You can take them on rent and fulfill your purpose. Many budding contractors seem to do this mistake and repent later.

Do not fall for offers that are unethical:-

If you are new to this business, you will meet people who will give you offers that may not be ethical but definitely alluring. You might be in desperate need of work and may consider it to be a wonderful offer. But this can be a trap and might end your career as a contractor. By no means should you accept any offer that goes against the norms of the law of the land how enticing it may be. You got to patient to get business. Showing any form of desperation can go against you and can lead you into serious trouble.

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Small contractors can quickly get small projects

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We usually have a belief that it is only the big construction companies that can make most of the monies in the construction industry. However, this belief of ours is no longer true and even small time contractors are able to make good money by taking small projects. Unlike big construction houses, who find it difficult to get projects, small contractors do not experience this issue so severely and always tend to get few projects at quick intervals. Projects such as constructing a small road or clearing up the garden are works that are not so difficult to get. However, these days many people tend to do the work on their own; but at times, they need help of professionals and this is when the contractors come handy.

The prerequisites that a small contractor should always keep in mind are mentioned below.

Should have good sales and marketing segment:-

In order to keep your business moving, it is very important that people should know about you and your business. If you want to keep your business limited within your city limits, you then have to ensure that the sales and marketing team of your company approaches people who may need your service. Since you are a small contractor, not everybody may know about you and this is why you need a strong sales and marketing team that will pervade the word to people and also check if there is anybody who is looking for a service that you are offering.

Goodwill of your company is the key for expansion:-

If you have made a good reputation in the construction market, be rest assured that you will keep getting work. Other than having a strong marketing team, goodwill of your company plays a key role in determining how soon you will be able to expand your business. Like every other businessman, you would want to expand your business and in order to do this, the goodwill can be very crucial. It is therefore essential that you maintain the quality of your work and try to satisfy your clients. Your clients will want you to give them excellent work by charging less. It depends upon your skill on how you negotiate with them and get the money that you deserve.

Have the right set of heavy equipment:-

A business moves on certain plans. You need to ensure that you incorporate the right set of heavy equipment in your business plans. Not having the machinery you need to get the work done will only lead to complications and that will cost you dearly. So before you start the job, do a survey of the field and check what you may need to complete the work. Also see how many days it may take to get the work done. You should not commit something and later on find yourself incapable of fulfilling it. According to the survey, you can arrange the equipment you may need for completing the job. Just in case, you don’t have heavy equipment with you, you can try to get it on rent so that it doesn’t cost you a lot.

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Small contractors should pay more attention to the quality of work than their profitability

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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.