Let's face it - sometimes the industry has ups and downs, and mistakes are inevitable. So, whether you are a manager or you own an earthmoving business, you need to understand how to drive the company in the right direction. The best way to do this is by learning from general mistakes that characterise the earthmoving business.
Here are the common blunders and how you can avoid them:
1 Overestimating or Underestimating Your Capabilities
Earthmoving businesses sometimes underestimate their abilities and shy away from seeking big clients. In such scenarios, you may think that you have insufficient capabilities to handle the specific needs of the client. Sometimes, on the other hand, you may overestimate your abilities, and you may end up failing to meet the expectations of your client. These could either lead to lower returns or harm your bottom line and reputation, respectively.
You can remedy these by preparing a capability statement that you present to your prospects. Show every client what you can do and let them decide whether they will hire you. Even if you do not qualify, they may recommend you to another client or use your services in the future.
2 Ignoring 'Smaller' Opportunities
Another common mistake by earthmoving companies is being picky with the available opportunities. Compared to the bigger projects, small construction deals come in numbers. If you focus on the best or the biggest, you could miss out on consistent opportunities, valuable contacts, and much more.
Therefore, we recommend that you handle any job that you can. This could help build your networks, smoothen your cash flow, and improve your bottom line.
3 Ignoring Tender Opportunities
Some earthmoving companies prefer dealing with confirmed jobs. This is mostly because they believe tenders have a longer waiting period with minimal chances of winning a hire contract. Well, tenders indeed have longer processes, but they are only for valuable projects.
It is okay to just stick to confirmed jobs, but submitting bids for tenders could benefit your company in many ways. Important people will note your company name, and this exposure could generate more leads for your business.
4 Inadequate Financial Knowledge
The financial landscape of this sector is fairly complex and requires a great deal of expertise to maintain accounting books. Without the proper knowledge, earthmoving business operators may experience difficulty understanding the source of profits or how to boost revenue. Furthermore, such businesses may not understand how to cut costs.
Hiring a qualified accountant could help you assess every aspect of the company from a different point of view. All costs will be calculated accurately, and the right measures established to increase profits.
5 Buying or Renting Earthmoving Equipment
One of the toughest decisions for earthmoving business owners is to buy or rent equipment. The best approach is looking at the job to be carried out, how often you will use it, and the expected maintenance and operating burden.
Smaller equipment can be purchased, considering they are usually mainstays within the company. Larger equipment like excavators, on the other hand, should be assessed before making the right decision. This is where you need to consider their frequency of usage and the associated costs.
6 Toxic Work Culture
Business culture consists of unspoken rules which drive the decisions of employees. Most construction companies have repeated behaviour and practices that lead to toxic work environments.
So how do you change the derailing culture? You can begin by dealing with individuals who embody toxic attributes – no excuses. Even top performers should not be left behind. You also need to involve all sections of the organisation in defining what should be changed and how they are expected to behave.
7 Poor Marketing Strategies
Your marketing efforts have a crucial role in the success of your business. Successful earthmoving enterprises are known to establish and implement outstanding strategies. Others, however, fail to invest sufficient resources and time in standing out in the industry. That is why most end up overshadowed in the competitive industry.
Do not get intimidated by the presence of your competitors if you want to boost your returns. Whether you have a few items in your fleet or you are already established, you have no option but to stand out. We recommend that you cook up an exceptional marketing plan to get a competitive edge.
8 Poor Machine Maintenance
You do not need an expert to describe how costly machine downtime could be for your company. Still, it is common to find most companies using equipment while ignoring the defects. Since they are not checked regularly, they have higher chances of break-downs without notice. This could bring about missed deadlines, interrupt business, lower revenues, or interruptions in operations.
To fix this, you can establish a schedule and create a budget for maintenance. Such preventative measures could maximise the useful lifetime and keep your equipment in shape to handle the next task.
Part of proper machine maintenance also involves making sure that you replace attachments with top-quality items. Himac Attachments are experts in the field, offering an impressive range of solutions. Whether you are in the earthmoving or agricultural sectors, you can be sure of industry top products.
These include wheel loader power rakes, and incredible attachments for equipment such as excavators, mini loaders, ag loaders, and telehandlers, wheel loaders, and skid steers. All these guarantee affordability, performance, and reliability.