Are you playing Jenga with your construction business?
Jenga: It’s a great game.
Attempting to build a tower of blocks without it falling over, hours of fun can be had when playing with your friends. There is also much hilarity to be had when one poor soul pulls out the wrong brick and sends everything crashing down.
However, there is less fun and hilarity to be had when it’s your business that crashes down because of a few ill-timed mistakes. And in the context of this article, we are talking about construction businesses, which is partly why we alluded to the game of Jenga in the first place.
So, going back to our title then. Are you playing Jenga with your construction business? Answer yes if any of the following is true to you.
#1: Not researching the competition
When starting a construction business, market research is vital. Not only does this include putting research into what the people in your locale need from a business within this industry, but it also includes researching the competition who could steal your potential customers away from you.
To succeed in business, you need to offer something that similar businesses aren’t. You might specialise in commercial rather than residential construction, for example, or you might focus on aspects that other businesses haven’t considered. As one example, you might run your business in an environmentally friendly way, as this will give you leverage over those companies that don’t.
So, look at the competition. Find out what they are doing. And then make the necessary changes to your business, as you might struggle to attract many new customers if you don’t.
#2: Not paying for insurance
You are just asking for trouble if you don’t insure your business. Within the construction industry, compensation claims are a likelihood because of the added risk of injury to employees and members of the public, so liability insurance is a must.
You also have your equipment to consider, as being out in the open, your valuable tools could easily be stolen if you were less than vigilant. Your tools might also become lost or damaged on-site or in transit. Without the right insurance, you would have to cover the costs of new equipment yourself.
So, don’t run the risk of a financial crisis because of your lack of insurance. Check out https://www.rhinotradeinsurance.com/tool-insurance as an example of the coverage you can obtain for your tools and then research other types of insurance that should be considered a necessity in the construction industry.
#3: Hiring cheap labour
Running a construction business isn’t cheap, as you have machinery, tools, and materials to buy for the projects you take on. You also have the expense of workers to cover too, as you won’t be able to complete your projects without them. For this reason, you might take on temporary staff as this might be cheaper than hiring people full time, or you might take on unskilled workers, as they would be cheaper to employ than fully qualified workers.
In both cases, you are putting your business in danger.
While hiring temporary workers is okay, it might be more cost-effective in the long run to hire a full-time crew. This way, you would ensure you always had people on your side, without having to suffer the expense of the hiring process time and again. And you wouldn’t have to consider hiring unskilled workers to fill in any gaps needed for your projects.
And on the subject of unskilled workers, beware! You are only asking for trouble if you hire people without the relevant training, as your site would become a health and safety nightmare. You would also suffer damage to your reputation as the level of quality in your business would drop if your workers didn’t have the necessary skills.
So, don’t cut costs in your business, especially where your workers are concerned. Your business might start to fall down around you if you do, and unlike a game of Jenga, that will be no laughing matter.
Do you work in construction, let us know where you get your insurance from?