How to run your own Construction business - Kotak Bank
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Winston Churchill once said, “Success is walking from failure to failure with no loss of enthusiasm.”

Having started your own construction business is like having taken the first plunge in a widely spread industry. Now every other step you take forward needs to be calculated and well planned to achieve something big. From day one, you have dreamt of making it closer to your dream and earning huge profits. You may have been involved in small or big contract jobs, remodeling, specialty jobs or may have build superior structures.

At the end of the day, are you making some good money?
Do you feel like your business is running you, rather than you running your business?
Are you happy or dissatisfied looking at the numbers?

Know how you can run your construction business effectively.

Define proper construction goals and set expectations
Take some time to understand what you want to ultimately achieve by running your construction business. To do this, you need to define success in your own words, in terms of your company growth, higher profit margins or by how much free time you get to spend with your loved ones.
Some practical steps that will help you in doing this is writing your mission statement. It will serve as a guide in defining your business goals well. It will help identify your values, future plans and financial goals in making it big in the construction world. Set proper expectations before your clients and your team members. This will result in long term and productive relationships. With proper processes and regulations in place, you as a business man will be in a better place to achieve your set goals.

To grow your construction business effectively, educate yourself about the various norms in the industry and evolve with time. Good employees want to be led well. Better your leadership skills to take better management decisions and to handle conflicts effectively.

Check your Accounts
It is humanly impossible to do all things right at all times. Hence, it is wise to take professional help when needed, especially when it comes to accounting and finance. Keep an accountant at bay to help you sort out your financial accounts. Share your construction related plans and other measurable with him and make every effort towards achieving future goals effectively. This will help avoid mistakes that cost you dearly, and also increase your chances of success and maximum returns.

Manage Finances
As your construction business grows, the need for finance also grows. There arises the need to borrow finance from outside sources. You will need capital to procure equipments, machinery, tools, vehicles and other construction materials. If you are running your business on a small to medium level, see to it that your business plan reflects most of the predicted and unpredicted costs and profits.
Business loans are designed to give you ultimate ease and convenience in smooth business banking. You can also avail a dedicated Relationship Manager to manage your funds and guide you with the right products & services. 

Keep a check on your employees
You can never run a construction business effectively, on your own. You need to involve quality and skilled people. The people you hire in your team matter a lot. If your business includes many people as part of the team then train them effectively and unleash their hidden potential for the betterment of your business. Include time and effort to find the right people with the right skills having the basic education to carry the work you started. On the job, training is great for carpenters and other construction workers to learn the tricks of the trade. Have them for a longer time on more projects, by maintaining healthy relations and paying them competitively, along with providing them with other benefits.

Effective pricing
Ensure you price the work you do well. Involve the actual costs you incur at the time of production and at the beginning of the job. Take into consideration the material costs, additional equipment needed if any and labor charges. See to it that you make good profit before getting into more business. Be keen to price every job you do really well.

Read Also: Key Point for Growing Your Manufacturing Business

Have strong contacts
Make your first impression count. The more repeat work you get will reduce your marketing expenses and in turn increase your business volumes and also upscale your profits. Look to build long term relationships with your clients, not just one-time jobs. Similarly avoid clients who don’t pay on time and don’t keep up with proper terms and conditions. Doing this will help you avoid unnecessary losses in the long term.

Promote your business
Build a website and accentuate your world. Set up social media to build traffic and to let the world know more about your business, your client list, the work done etc. You can even ask your clients to write their experience after working with you on various structural and construction related jobs. These can be shared as testimonials on your website.

Few mistakes you must avoid:

• Having a poor or inadequate accounting system in place
• Not having enough people at hand to accomplish a prospective construction job
• Being overstaffed; having more people to do very less work
• Poor training and orientation programs
• Spending heavily on tools and equipments that are unused and not needed

The key is to thrive rather than merely survive in the construction industry. The more there is demand for new houses, renovation of homes; structure remodeling and other construction activity, the more the construction industry will keep booming, opening new opportunities for you as a business owner.

Read Also: Benefits of Small Business Loan

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.