Michael Levitt's Blog, page 49

Improving the Profitability of Your Construction Company

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If you own a construction company then you know that there are two main objectives; create something and make a profit. But for many construction businesses, it can be hard to make it profitable. Part of the reason why is how contracts are gained and bids for work are solicited. In projects for the public sector, for example, the contract goes to the lowest bidder, no matter the quality of the work or the expertise and experience of the construction company. 

Construction companies also need to think about the competition that there is locally, and as a result of fewer work opportunities, it can lead to bids being much more competitive, and the business itself working on very thin margins, in order to have enough work to stay in business. The cost of building materials is another factor to consider, with the cost of them rising steadily. All of these factors combined can impact the profit margin of a company, some of which are out of control of the business itself. 

As a construction company, it is important to focus on the things that you can control, such as reducing costs, bidding better, and making sure that the work that is done is of the highest quality. So with that in mind, here are some of the things that you can do to improve the profit margins as a construction company.

Shop around for materials

You may have always used a particular vendor for the materials that you need. While you may know them and like what they provide, are they always going to be the best price for you? For example, when it comes time to choose water tanks for your construction project, you will want to choose one that does the job, but is also affordable. If you have only ever stuck with one supplier before, then it is time to shop around. 

Improve productivity

Productivity is measuring how effective the effort that you are putting in is. In the construction industry, you will usually measure how many hours something takes to construct as a measure of how productive you are being. By taking steps to maximize productivity on a job, it means that you are working more efficiently in order to control things like costs and stay on the job time schedule. If you have projects that get completed under budget, as well as ahead of schedule, then the profit margins for those jobs will be much higher. That is why you need to identify where there are some productivity issues and take steps to improve.

Know your exact costs

If you want to be more profitable, then you need to understand the costs that come with each job or project. This will be including things like exact overhead costs, not just estimates. If you haven’t got a clear idea on what projects cost to complete, then you can’t know if you're going to be making money on a job or losing money. Be specific, and include everything, from materials, to labor, fuel, water, and everything in between. 

Why You Should Do Business Online

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There is nothing more important in your business than progression. Taking your business from where it is right now to where you hope it will be is not always easy, but it doesn't mean that you can’t do it. The world has changed drastically in the past 20 years, let alone the past century and that means that you have to do all that you can to ensure that you are keeping up with the trends as much as possible. If there is one thing that’s certain, it’s that your business could look very different much sooner than you anticipated that it could. 

Most of us witnessed the regression that happened that collapsed businesses across the world. We’ve seen a rapid downfall of economies around the world during the pandemic and we’ve seen businesses that are remaining a brick and mortar establishment fold because they couldn't step forward and embrace the new digital world that we’re in today. When you don't seek funding for an online business and you decide to keep the walls and ceilings you’ve become accustomed to, your business is at risk of failure. It’s a harsh truth, but it’s one that is correct for the world we live in and while you CAN keep the brick and mortar business you’ve built, you need a digital side to you. That's the beauty of business: you can have both and still remain credible. Businesses that don't sell online will end up folding and while it sounds like a threat, it’s not. We’re living in a world that relies on the internet and technology to grow and the growth of ecommerce businesses is happening right now. Taking your business online is the smart thing to do with your next steps, and here’s why.

It’s a new way to make a lot of money. The internet has created opportunities for you and every other business owner out there to make a lot of cash. You extend your reach to new areas and you don't even have to be an ecommerce giant. All you need to do is know who your customers are and appeal to them in the right way. The smallest of businesses can make a big impact and have success.

It’s the perfect venue. When you need a venue but you don't know the size you need, use the internet. When you need space to grow but don't want to change location, use the internet. When you need more storage space, use the internet. When you have an online business, you don't need to worry about the space that you occupy because you can use as much of the internet as you need to carve out a corner that’s just yours.

You can really improve your brand image. If you don't go online and you stay at the store on the corner, people won’t be looking favorably upon you. In fact, they consider your business to be one that refuses to step into the new world and that can be problematic to your image. You want people to look at your business and feel impressed and that means getting online. Your business looks so much more professional when you have a website, email and more.

You can provide much better customer support. There is so much out there that you can use when you are online compared to being in store. There are live chat programs and online customer service agents. You should know by now that customer service is a reflection of your business and when you don't invest in it, you’re going to end up showing people that you don't care enough. You do care, so show it!

You have the ability to provide a wealth of information to people more easily. You can put so much information out there online that shows you as an authority in your industry. You can add blogs, white papers, articles and research - whatever you think will appeal to your customers, you can add to your website online. This will help you to make information much more available and easily accessible. 

You’ll cut costs. Without an office or staff you are going to drastically slash your overheads. Your operation costs are going to come right down, and while you still might outsource some of the processes in your business, you won’t have to pay the annual salaries and benefits of an entire staff anymore. You’ll also save money on utilities, maintenance, parking - you name it, money is saved!

It won’t cost you much to get started. You can find funding for an online business, but you can also bet it won’t cost you as much as starting up outside the four walls of your house!

Simple Ways To Boost Your Reputation As A Small Business

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Running your own small business takes an enormous amount of time, money and energy, so it's vital that you can make a good impression in order to attract enough customers to warrant such hard work. Failing to develop a positive reputation could have a catastrophic impact on tour business as a whole, as it can discourage new customers from visiting your store and subsequently cause you to rely on loyalty or repeat custom to survive. Thankfully, learning how to boost your reputation as a small business doesn't have to be as difficult as you might expect, as there are in fact just a few simple steps that you can follow to turn your dreams into a reality today. So, if you're interested in finding out more, then read ok to uncover some of the best tips and tricks that you and your team can utilize today!

Improve Your Online Presence

In the modern-day, one of the most important things that can impact your reputation is your online presence. Lacking any form of online presence will no doubt put you in an extremely tricky position as a small business, as you won't be able to reach out to your audience in an efficient and proactive manner - you need to set up several different platforms and features to ensure your customers can find you online, otherwise, they won't have any trust or faith in your business as a reputable and authentic company. Start by building a website, as you need to claim your own corner of the web and set up a kind of virtual storefront that your audience can visit at any time of day or night from any location. Use your website to advertise and sell your products and services, and be sure to include an instant messaging or 'chat' service that allows visitors to speak with a member of your team through your website to ask questions and gain the most informative answers. You should also establish a social media presence to better connect with your customers and improve your reputation, as you can build your network and gain lots of followers, likes, and comments to prove just how great your small business really is. 

Fight Back Against Criticism

Rather than simply accepting complaints and criticism, you need to fight back and get to the bottom of the issue if you want to succeed as a small business. You simply can't afford to receive constant negative reviews, as people will see these and instantly choose to shop elsewhere. Instead of allowing it to reach this point, you need to form a better relationship with customers who have complaints - solving the issue and helping them to feel as though things weren't so bad in the end will drastically reduce the amount of criticism you get, as this is far more productive than brushing off the customer in hopes that they simply won't come back. If you do fall victim to bad reviews, especially those which are overstated and insulting, then you should contact a service like removify to get rid of these complaints before your audience has the time to see them.

Additional Services That Go With Your Business Website

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Running a business website is more complicated than simply designing something that looks really good. Many people choose to rely on DIY website-building tools to make sure that they tick all of the boxes, but there are still plenty of platforms out there that don’t hand it to you on a platter. Making sure that you have all of the features your website needs is important, and you may need to spend money on some third-party services to be able to take advantage of this. Let’s take a look at some of the additional services that any business website needs.

A Domain

Website domain names are used to replace IP addresses with something that humans find easier to remember. This will form the basis of your web address and email addresses, and most companies will spend a little bit of money to make sure that they can get the very best domain name for their work. Companies like can help you to find the perfect domain name for your business, making it exceptionally easy to get started with this. Of course, though, you may need to learn about DNS records before you can get started.

SSL Certificates

SSL is an encryption tool that enables website owners and users to protect the data they send and receive. All websites should have an active SSL certificate in place, but this is something you will usually need to buy separately when you own a website. Installing your certificate can be a little tricky, but most domain hosting companies will be able to help you with this element of the process.

Website/Email Hosting

Hosting a website requires a server that is connected to the world wide web and has enough space to store all of the files that come with your website. Businesses will almost never host their own website, and you will need another company to help you with this element of your online work. Of course, it can also make a lot of sense to have a separate email hosting server in place to make sure that security issues don’t make both sides weak.

SEO Support

Making a website show up on search engines is harder than most people think. Learning how to perform SEO well can take a very long time, and putting loads of time into this element of your website doesn’t guarantee success. Hiring a company to work on your SEO could be one of the best marketing choices you ever make, and this is something that can be worthwhile as soon as you launch your website.

As you can see, managing a website isn’t as simple as making something that looks nice. There are technical aspects to this job that can be tricky to understand, but building this knowledge will help you to save money for your business in the future. You should always work hard to make sure that your website is performing as well as it possibly can.

Why You Need A Digital Transformation Strategy

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There is no denying that we live in a world that is very much centered on technology. Therefore, businesses need to do everything in their power to make sure they are making the most of the tech that is available to them. It is not just about using new forms of technology but it is about making sure it is integrated effectively and used wisely. After all, not every piece of technology is going to be beneficial for every business. You need to figure out what is going to be right for you, and this is something that is going to change and develop overtime. 

Digital transformation involves integrating digital technology into all business areas, fundamentally changing the way in which we operate and deliver value to our customers. It is also a cultural change that demands businesses to constantly challenge the status quo, experiment, and get comfortable with failure. Read on to discover everything you need to know about the importance of it. 

What is a digital transformation strategy?

A digital transformation strategy is a detailed plan for utilizing digital solutions to enhance the physical elements of your company across service, manufacturing, and engineering. 

A digital strategy for business purposes describes how your company must strategically reposition itself in the digital economy. As consumer habits change, so do the way winning companies operate. They innovate, change business and operating models, and leverage emerging technology. 

As a consequence, your digital transformation strategy can cover so many different areas. This can involve working with industry experts like Music City Fashion Design to revamp your online presence. It can also involve updating the software that your employees use on a day-to-day basis so that you can automate processes and run your business more efficiently. It is, consequently, a very broad scope of tasks and processes, yet it is all about making the most of the latest technology so you can continue to grow and move your business forward. 

What are the benefits of digital transformation strategy?

There are many different benefits that you will gain by having a digital transformation strategy in place. This includes all of the following: 

Enhanced efficiency - One of the greatest benefits you will gain by implementing digital transformation into your business is enhanced efficiency. Having the correct tools that work together can enhance productivity and streamline workflow. By automating many manual duties and integrating data throughout the business, you will empower team members to work more efficiently. 

Enjoy better agility - Next, a digital transformation roadmap will enable your business will become more agile with digital transformation. Businesses can use Continuous Improvement (CI) approaches and enhance speed-to-market with digital transformation. This enables quicker adaptation and innovation while giving you a pathway to improvement. 

Boost your profit levels - Businesses that undergo digital transformation improve profitability and efficiency. There are a number of statistics that have been provided by the SAP Center for Business Insights and Oxford Economics that show that this is the case. For instance, 80 percent of businesses that have completed digital transformation state that they have had an increase in their profits. Furthermore, 85 percent has experienced a boost in their market share as well. 

Enhance collaboration and foster a digital culture - Aside from the benefits that we have mentioned so far, if you provide team members with the correct tools that have been adapted to suit their environment, you can expect digital transformation to encourage a digital culture. While these tools offer an easy method of collaboration, they will also help in terms of moving an entire business ahead digitally. The digital culture is going to be critical in the future. It forces the digital learning and upskilling of team members to make the most of the benefits that come with digital transformation. 

Deliver a better customer experience - Customers value experience now more than they ever have, and their expectations are increasing all of the time. This is because customers have gotten accustomed to having fast delivery, low prices, and endless choices. In fact, Gartner has stated that more than two-thirds of businesses are competing mostly on consumer experience today. By leveraging technology effectively, you can make sure that your business leads the way when it comes to the consumer experience. 

Improved resource management - Digital transformation will consolidate resources and information into a suite of business tools. Rather than dispersed databases and software, it will bring business resources together all in one place. Digital transformation can integrate software, databases, and applications into a central repository for business intelligence. 

Better data collection - A lot of companies are collating mountains of data on consumers but the real advantage is making sure this data is optimized for analysis that can drive your company forward. Digital transformation generates a system for collating the correct data and ensuring it is incorporated fully for business intelligence at a higher level. It generates a way that various functional units within your business can translate raw data into insights across a number of touchpoints. By doing this, it creates a single view of the customer journey, business opportunities, finance, production, and operations. 

Final words on digital transformation strategy

As you can see, there are a number of different benefits that are associated with digital transformation strategy. In today’s changing environment, it is important to make sure that you keep your business competitive. 

From cost savings to improved efficiency, there are many benefits that you will gain by implementing a digital transformation strategy. However, this is only going to be the case if you implement a digital strategy effectively and make the most of the technology that makes the most sense for your business. This is something that requires a careful and considered approach. You will need to conduct research and potentially enlist the help of experts who know what it takes to make a big impact with the use of technology. 

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Easy Ways To Start Marketing Your Business Offline

With most aspects of business finding new ways to stand out and differentiate themselves online, the competition for offline marketing has dropped significantly. While many will argue that the old ways should get left in the past, there are still plenty of opportunities to take advantage of in the real world. So, if this sounds like something you might be interested in pursuing, explore this article regarding some easy ways to start marketing your business offline.

Find a Way To Get Some Free Publicity

The key to marketing is getting your name out there, and free publicity is one of the best ways to do that. The only problem is finding a reason to get the news channels to put you on the air. While we don’t necessarily agree that all publicity is good publicity, there certainly are some companies that have become well-known for being controversial.

Instead, we recommend that you do positive things like spending the month supporting a good cause or offering storewide discounts. Obviously, it’ll depend on your business and location, but there’s always a positive story that you can work out for your company.

Get Involved in the Community

Not all good things need to be done on camera, though. Simply being an uplifting influence on your community will win you a lot of points with potential customers. Sponsoring a local event or setting up a booth with giveaways at the county fair are ways to get seen by the public. Even if the event you’re involved in doesn’t get seen by a lot of people, if the ones that did see you liked what they saw, they’ll be more likely to tell their friends and family about you.

Put Up a Few Billboards

We’ve been concentrating a lot on your public image, so let’s get into a couple of more advertising-focused offline methods. One of the most effective ones is putting your ads up on signs around town. There are a lot of tips that will help you find success with these, but the key to all of them is garnering attention and giving people a reason to act.

You can let them know about some good deals going on or a few new products that you have. Even something as simple as telling them who you are and where they can find you might be enough to pursue them to check you out. Just test some things out and record how your sales fluctuated during that time.

Send Out Mailing Advertisements

Our final, easy way to start marketing your business offline might seem a bit archaic to some of you but sending ads through the mail is almost always worth the money. Sending physical mail is relatively cheap these days, and with people receiving less of it in general, your ads have a better chance of standing out.

A majority of your ads will probably get thrown in the trash, but the few hits you get will more than cover the original costs. Just be sure to provide coupons or let people know about sales to gain their attention.

The Signs of a Failing Building Foundation

Any structure, whether it be a residential home or a commercial building, needs a solid foundation to support the structure. Without that foundation, the structure cannot safely house people; the same is true when there’s a failing foundation.

There can be several reasons for a foundation to deteriorate over time, but contractors need to know the signs of a failing building foundation to act fast enough to fix it. If contractors fail to do the job correctly, the building with the broken foundation will no longer be safe to inhabit.

Keep an Eye Out for Cracks

After construction completes on a new building, the foundation will naturally settle over the next two to three years, resulting in minor, superficial cracks. But serious issues start to occur if those small cracks develop into serious fissures.

Typically, horizontal cracks that are roughly two inches wide are a common sign of significant foundational damage, most likely resulting from excess water pressure on the foundation. Never discount any type of crack on an interior or exterior wall; while it may be small, it can grow into something more serious.

Signs of Settling or Sinking

A sinking foundation can take several forms, whether it’s the entire structure sinking evenly, one side becoming lower than the other, or the center of the building sinking before the edges. Whatever the scenario, these are not safe conditions for a building’s occupants, and major repair work is necessary.

Foundational sinking occurs when one or more sides of the foundation have excess moisture, weakening the solid ground and resulting in the sink. Different foundations react differently to sinking, making each repair job specific to the building.

Uneven Floors

When the foundation fails, it affects the rest of the structure in tangible ways. One of the most common signs of a building’s failing foundation occurs when the floor begins to noticeably sag or becomes unlevel.

These signs not only serve as an early warning of more serious problems but also pose a safety risk to anyone inhabiting the structure. Tripping and slipping hazards are the norm when it comes to a sagging, uneven floor, and individuals risk their safety until these foundation issues are resolved.

Correct the Mistakes Effectively

As a contractor, it’s essential to address foundational problems and possess the correct tools for the job. Always keep an eye out for those signs that point to foundation issues, and never let them go without mention to a property owner. A keen eye can save property owners a lot of money when you catch these issues early and eliminate unnecessary risk.

Improve Your Management Skills With These 4 Tips

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Ask anyone who has ever been employed, and they will undoubtedly have a wealth of management horror stories that will make your hair curl. Maybe you have too? And that is why you are finding yourself wondering how not to behave as a boss and how to create a healthy working environment within your own company.

While your employees are there to work for you, of course, there is no need to make life difficult for them, and studies have shown that when employees feel respected and are treated well, they repay this in their work.

So if you want to be the boss whose employees will go the extra mile for, working on your Leadership skills will serve you well as you build your company.

How to be a better boss

Be clear and consistent.

If employees know what is expected of them and how they are expected to work each and every day, they will work within these guidelines rather than if you keep changing the goalposts and deadlines on them. Think hard about what works best for your company and refrain from changing how you want people to work on a whim without thinking through how it will impact your workforce.

Empathy

Yes, people are here to do a job, but they also have lives and other commitments outside of work. The American hustle culture and expectations of people working long days without extra pay aren’t conducive to a productive workforce. They will result in an unhealthy working environment and a high staff turnover.

So pay attention to your employees’ lives, offer flexibility where you can, and appreciate that they have a life to live outside of your walls too.

Don't Micromanage

Being the boss means you are likely to be pretty adept at most things in your company yourself. After all, that's how you got it where you are. But by doing everything yourself, you are likely to combust with too much on your plate. This is why you have employees.

Effective delegating is the sign of a good boss, as is refraining from micromanaging everything. Trust your employees know what needs to be done, and they have the skills to get the job done. Because that is what you are paying them for. Monitor performance by all means from a distance and with a beneficial interest to keep an eye out for mistakes or errors if need be.

Mentor

Don't dictate, mentor. There are always times you can teach people, and they can teach you during the working week. Try to use times when people are unsure as teaching money where you can impart your own wisdom and explain why this method works or ask for others’ input to improve services or ways of working etc.

By involving your employees in making decisions about how they work or allowing them a more inclusive learning culture, they will likely improve their efficiency and productivity due to them being confident in their own skills and knowing if they have any concerns, you will be on hand to assist them.

How To Choose The Right Legal Business Setup

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One of the very first things you are going to do in your startup planning is deciding which business structure is going to be best for you.  Each of the legal structures for your business will have different tax requirements and will offer you different levels of protection.  To start with, you are going to look at what your future business goals are, and take into consideration the laws in your country or state. 

Once your company is on the road to success, and you can see growth - you can choose to change the legal structure. Discussing your options with a business lawyer is one of the first things you should do.  That simple conversation will bring clarity to the issue, and see you on the right path from the start.

Informal Business Structures

If you are a freelancer, or a solo/two-person small business then you might choose to have an informal business structure.  Always keep in mind that these don’t offer protection when it comes to personal liability, and they also don’t have taxation benefits.  The two types of information structures for your business are: 

General partnerships: more than one person owns the business, but it isn't a formal organization. Taxes will be filed under the partners' names, and if anything should happen, all the partners are liable. 

Sole proprietorship: a single person will own this business; they are responsible for their taxes and personally liable if anything happens to the company. 

If your business is low risk, these are a great option, and you intend to stay a freelancer. 

Formal Business Structures

If you want to maximize your tax benefits, have personal liability protection, and enjoy increased credibility, a formal business structure is ideal. 

LCC: A Limited Liability Company, LLC, is owned by its members and is one of the simplest formations to protect personal assets. There are also great tax benefits from having an LLC. 

Corporation: Shareholders own a corporation, which is a formal legal corporate organization. Personal liability protection is provided by a corporation, which is more complicated than an LLC. When you need to attract outside investors, forming a corporation is beneficial.

If you are looking for a formal structure that offers simplicity, the LLC is the best option. It provides a significant amount of protection and can still be attractive to investors.  If you have an idea of the business you want to run, you probably know the machinery, staffing, or premises you need. Those will be some of the deciding factors.  Corporations are known to be more challenging to maintain, partly because most small businesses don’t make enough for it to be sensible to pay high corporate taxes. 

Most often, the decision comes down to do you want to have personal liability protection? While there are business insurances that you can (and should) keep protected, having extra layers from your business structure is invaluable. 

Are you wondering who can help you, and at which stage of your business? 5 Professionals to Work with as a Business Owner — Breakfast Leadership Network  

How To Protect Yourself While Working In Construction

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Construction is one of the most dangerous industries to pursue a career in, however, it can also be an extremely profitable and rewarding job that many people choose to remain in for several decades. In order to reap the benefits that a construction career can offer without putting yourself in danger, you need to follow a few simple steps that will keep you out of harm's way. These steps will reduce your chances of falling victim to accidents and injuries, allowing you to enjoy your construction career without the constant anxiety of hurting yourself or someone else on shift. So, if you're interested in learning more about how to protect yourself while working in construction, then read on to uncover the most informative and effective recommendations that you can take on board now.

Invest In Quality PPE

Investing in the best quality PPE (personal protective equipment) should always be your first port of call, as you need to get suited up in the right gear to avoid doing any damage to yourself while on the job. First and foremost you'll need a sturdy hard hat helmet that's made of a suitable high strength material, as falling objects are common and you could easily experience catastrophic skull or brain damage if you're underneath one of these falling objects without the protection of a specially designed hard hat. Next, you'll need some steel toe capped boots that are reinforced to stop your feet and toes from being crushed under the weight of a dropped object. Lifting something without a good grip could easily cause you to let go of a heavy object, and the only place it will go is down - if your feet are in the way, they're going to take the brunt force, so you need to keep them safe and sound with the protection of steel toe capped boots. If your construction site is particularly loud with lots of noise pollution, it's a good idea to source a pair of esr defenders or plugs that can protect your eardrums from the unhealthy volumes. Extras like high visibility reflective jackets and eye protection glasses can also be purchased for specific environments. 

Always Have Representation & Expert Support

Construction industry workers must always have access to legal representation and expert support in order to protect themselves during their career, as a variety of issues could arise that might only be solved by those in the know. If you're unaware that your rights are being ignored or health and safety standards aren't being met, then you're going to be in serious danger - being a part of a union or having your own lawyer would mean that these risks would never go unnoticed, and they would be able to take the relevant steps to ensure you're totally safe while at work. You'll need to find a respected construction accident attorney if ever you fall victim to an injury or other difficulty while on shift, as they will be able to represent you and ensure that you can seek justice and some kind of repayment for the trouble you experience while making sure nothing similar can ever happen again.