​Business Understanding

The survival and expansion of any company or business, large or small, depends on its profitability.

•Without profits, a company will cease to exist.

•Without companies, there is no employment.

•Without profits and employment, there are no government taxes.

•Without government taxes, there are no public services or unemployment benefits.

​Consequences of poor business management

Poor business management can often spell the end for construction companies. Poor planning, financial organising and lack of care can lead to unhappy endings for employers.

•Miscalculating or under-estimating for a building contract can result in lower profits or even financial losses for the company.

•Loss of assets can occur due to poor cashflow or financial management.

•Delay in company growth or future business opportunities can result from poor management of income and expenditure.

•Staff can lose their jobs and become redundant.

​Overheads

These are costs associated with the day-to-day running of a business. These include:

• Purchase of rental of a premises.

• Payment for services

• Purchase or lease of a vehicle

• Annual insurance
  

​Business Growth

To grow a business can be challenging. Trying to simultaneously maintain a healthy cash flow and grow a business.

The amount a company charges a customer for work carried out can be calculated using what?

​Business Growth

The amount a company charges a customer for work carried out can be calculated using what?

• The cost of materials needed.

• The equipment and labour required.

• Overheads that must be covered over the duration of the project.

• Prime costs involved when setting up the project.
  
  

​Open up your teams page

Complete assignment on pricing a job.

​Open up your teams page

Provide a 250 word rationale as to why quality is so important within your trade area and has such a big impact on reputation and business.  

​Importance of customer Service

To maintain a good reputation, a construction company must meet the expectations of the customer throughout a project.

​The consequences of loss of business

If a company plans projects poorly or does not maintain high standards of work and customer service, it will be unlikely to continue as a profitable business.
The consequences can include:
Loss of earnings, loss of assets, delay in growth, redundancy of staff, lower credit score and bankruptcy.

​Any Questions