Land & Architectural Survey Blog

Month: October 2022

  • How to undertake a market analysis when starting your land surveying business: Land Surveying Business Planning Part 2

    Market analysis plays a vital role in the success of land surveying businesses.

    Understanding the Importance of Market Analysis for a Land Surveying Business

    As a land surveying business owner, understanding market trends is crucial for making informed decisions.

    Identifying Market Outcomes and Gaps

    Identifying market outcomes involves conducting thorough research on target markets and analyzing industry trends.

    The Role of Market Analysis in Land Surveying Business

    Market analysis is essential for land surveying businesses to identify opportunities and differentiate themselves from competitors.

    In conclusion, market analysis is a crucial component of any successful business, including a land surveying business.

    References:

    • ASIS. (n.d.). The Importance of Market Research for Business Success.
    • National Business Review. (n.d.). The Role of Market Analysis in Business Decision-Making.
    • Harvard Business Review. (n.d.). The Benefits of Effective Market Analysis for Businesses.
    • ISM. (n.d.). Market Analysis and Supply Chain Management.
    • Resurgent Capital Partners. (n.d.). The Land Surveying Industry: A Global Market Analysis.

    Market Analysis

    Market analysis is a crucial component of any business strategy. A market analysis is a qualitative approach to understanding the market and its trends, as well as understanding customers and their needs, in order to outperform competitors.

    A market analysis typically begins with a thorough understanding of the business itself, including its unique value proposition, target market, and competitors.

    This step is essential in determining whether entering a particular market is a viable option, or if a different market may be a better fit for the land surveying services offered.

    Conducting a market analysis helps businesses avoid entering a market with limited demand or competitive alternatives.

    Key Factors to Consider in Market Analysis

    A thorough market analysis should consider six key factors: consumer behavior, competitive environment, economic conditions, legal and regulatory factors, technological environment, and social and cultural environment.

    Consumer behavior plays a significant role in determining market demand and competition. Understanding consumer needs and preferences can help businesses tailor their services to meet those needs, increasing customer satisfaction and loyalty.

    In addition, a market analysis should consider the competitive environment, including the market share of existing players, market trends, and potential barriers to entry.

    Economic conditions, such as recession or growth, can also impact market trends and consumer behavior, while legal and regulatory factors, such as zoning laws, can affect market accessibility.

    Technological advancements and social and cultural trends can also influence market analysis indicators. Businesses must stay up-to-date on the latest technologies and adapt their services to meet changing consumer demands and preferences.

    Ultimately, a comprehensive market analysis can help businesses make informed decisions about where to focus their efforts, ultimately benefiting everyone involved.

    Market Analysis Guidelines for Land Surveying Companies

    Conducting a thorough market analysis is crucial for a successful land surveying company. This analysis considers six key factors: consumer behavior, competitive environment, economic conditions, legal and regulatory factors, technological environment, and social and cultural environment. By understanding these factors, you can identify trends, stay competitive, and make informed decisions.

    Consumer Behavior

    An effective market analysis must examine the behavior of consumers, including their needs, preferences, and pain points. According to a study by the National Association of Realtors (NAR report), consumer behavior plays a significant role in driving business decisions. Analyze customer satisfaction level (CSAT), customer churn rate (CGR), and other key metrics to understand the demands of your target market.

    Competitor Analysis

    Analyzing the competitive environment is vital to staying ahead in the market. Companies that monitor their competitors regularly, like the McKinsey Global Institute, gain valuable insights into market trends and consumer preferences. This analysis involves assessing the market share, strategy, and performance of key competitors and identifying opportunities for growth and differentiation.

    Economic Conditions

    Understanding the economic conditions surrounding your business is critical to staying profitable. The economy can affect customer spending habits, and companies need to be prepared. Research by the Kauffman Foundation, states that this can have a significant impact on consumer purchasing decisions, and that analyzing these trends, helps identify areas where you can cut costs and improve efficiency.

    Legal and Regulatory Factors

    Remaining up-to-date with legal and regulatory factors is essential to avoid unnecessary disruptions to your business. For example, IRS guidance on business formations and registration, can help you stay compliant.

    Continuous Monitoring

    Continuous monitoring of these factors is crucial as they can change anytime while running your business. Market analysis is not a one-time activity, but rather a continuous process. For example, monitoring consumer satisfaction levels (CSAT), customer churn rate (CGR), and customer complaints per month are some of the key drivers that need to be monitored.

    Example

    According to a report by HR Bartlett, customer retention is a key factor in driving business success, as it leads to increased revenue and loyalty.

    Talk to Customers or Potential Customers

    Engaging with customers and potential customers is essential for gaining valuable insights into their needs and preferences. Research by the Harvard Business Review, states that talking to customers can help businesses stay ahead of the competition by providing hidden gems to observe.

  • Understanding customer pain points is a crucial aspect of market analysis, as it helps businesses identify areas of improvement and optimize their offerings accordingly.
  • Understanding customer expectations is equally vital, as it enables businesses to tailor their services to meet the evolving needs of their target audience.
  • Furthermore, assessing customer satisfaction with your services allows businesses to pinpoint areas that require improvement and implement data-driven solutions.

    • Concluding a strong market analysis will allow you to know what you are doing right and where you need improvement.

    Conclusion

    It is essential to note that not all aspects of your business can be controlled, but a well-crafted market analysis will help you position your business for success within the market.

    By following these guidelines and incorporating the insights from your market analysis, you can develop a robust strategy that drives business growth, customer satisfaction, and long-term success.

    References

  • Land Surveying Business Planning Part 1

    Many types of company structures can be used to set up a land surveying business in the UK. According to a study by the UK’s Office for National Statistics, the most common structures used by land surveying companies are limited companies, sole traders, and partnerships.

    The whole point of these structures is to share or limit the liability of the works done. This is because as a sole trader, your personal assets are at risk in case of business debts.

    A company, if set up correctly, can limit the liability so that your own personal assets are not in danger. A limited company, according to the Companies Act 2006, is a corporation that limits its liability for debts, liabilities, and obligations through state law or charter documents.

    The type of business entity you choose will depend on your business needs and the laws in your country. A survey of business owners by the International Chamber of Commerce found that the choice of business entity is often influenced by factors such as the ownership structure, management, and ownership transferability.

    There are four main types of business entities: Public liability Company, Limited company, Sole trader, and Partnership.

    A Public liability Company is a corporation, but it’s not publicly traded on the stock market. This type of company is used by larger businesses that want to limit their liability and raise capital via debt or equity financing.

    A Limited company, according to the Companies Act 2006, is a corporation that limits its liability for debts, liabilities, and obligations through state law or charter documents.

    A Sole trader is an individual who does business under their own name without incorporating as a separate legal entity.

    A Partnership is created when two or more individuals agree to join together to engage in business activities for profit but without incorporating as a separate legal entity.

    When running a land surveying business, you need to have an objective to help you set your goals for you as the business owner but also the employees/staff.

    The strategies can be just a set of goals that you highlight how you want the business to run. For example, you can have a 5-year plan set out such as: establish the surveying business as a market leader for SMEs who are turning over less than $5m/year, establish an average of 12% margin every year, grow the business turnover to $3m/year by year 5.

    References

    • Accounting Principles and Procedures Part 4

      Credit checks and financial analysis are essential tools for evaluating a supplier or client’s ability to pay and finance a project, particularly in the construction industry.

      According to Experian, a leading credit reporting agency, conducting thorough credit checks can help prevent financial losses and minimize the risk of non-payment (Experian, n.d.).

      These red flags can indicate a company’s poor credit control, which may result in difficulties in getting paid or completing the project.

      For instance, multiple credit checks, nil assets, or CCJs against the company should raise concerns (Experian, n.d.).

      Fortunately, most credit check portals provide comprehensive information, making it easier to identify these issues (Experian, n.d.).

      If you’re unable to access this information, you can calculate a liquidity ratio to assess a company’s financial stability (DeFrang, 2019).

      Conducting credit checks on clients can help you avoid the financial risks associated with non-payment or unfulfilled projects.

      For example, in the construction industry, companies may go bankrupt or fail to pay their suppliers, leaving you with outstanding debts (Baker, 2018).

      Land surveying clients with poor credit control may also compromise on the quality of their work, insurance, or professionalism.

      To mitigate these risks, it’s crucial to investigate a company’s credit history and assess its ability to pay for your services (Baker, 2018).

      Furthermore, evaluating a company’s liquidity using a liquidity ratio can help you determine its ability to support a project of a given size and duration.

      For instance, if a survey estimated to cost £50,000 is expected to take several months to complete, a company with a limited working capital base of £20,000 per month may struggle to cover its expenses and potentially go insolvency (DeFrang, 2019).

      To avoid such risks, it’s advisable to scrutinize potential clients’ financial stability before engaging your services.

      References

      • Accounting Principles and Procedures Part 3

        Acid Test Ratio The Acid Test Ratio, also known as the Quick Ratio, measures a company’s ability to pay its short-term debts using its liquid assets. According to a study by Forbes, a company with a higher Acid Test Ratio has a higher likelihood of being able to pay its debts, which can lead to improved financial stability. This ratio is calculated by adding a company’s cash, accounts receivable, and short-term investments, then dividing that total by its current liabilities. By analyzing this ratio, investors can gain insight into a company’s ability to meet its short-term obligations.

        Profitability Ratios Profitability Ratios are a measure of a company’s ability to generate earnings from its sales. A well-calculated Profitability Ratio can help investors determine a company’s financial health and potential for future growth. A study by Harvard Business Review found that companies with high Profitability Ratios tend to outperform their peers in terms of long-term financial performance. The margin is calculated using the formula: profit ratio = turnover – (cost of sales/turnover). This ratio provides valuable insight into a company’s ability to manage its costs and generate profits.

        References