Utilise The Common Sense Approach…Utilise The Common Sense Approach…
For any property developer, this is no greater joy than watching a property development project come to life; building the homes from scratch, advertising and then selling the units at a profit is the ultimate ‘water into wine’ scenario.
However, it is often the case that these development projects are either poorly funded, or the cost of the project steadily increases to a point where the initial investment has all been spent, leaving the developer with half built properties that are unsellable and cannot be progressed any further.
A lot of new property developers forget about financing the project and calculating their ROI, and this is a fatal error.
This guide is just for finance, and is not intended to help strategise the project itself.
With some forward planning, the risks cannot be eliminated, but they can certainly be minimised.
For any property developer, this is no greater joy than watching a property development project come to life; building the homes from scratch, advertising and then selling the units at a profit is the ultimate ‘water into wine’ scenario.
However, it is often the case that these development projects are either poorly funded, or the cost of the project steadily increases to a point where the initial investment has all been spent, leaving the developer with half built properties that are unsellable and cannot be progressed any further.
A lot of new property developers forget about financing the project and calculating their ROI, and this is a fatal error.
This guide is just for finance, and is not intended to help strategise the project itself.
With some forward planning, the risks cannot be eliminated, but they can certainly be minimised.
Taking a Personal Loan
Taking a Personal LoanTaking a Personal Loan
This may sound like an easy option but it can be costly in the long term.
Unlike a business loan, where liability is limited to the organisation, a personal loan taken out to service the business’ needs can backfire if the project folds.
The individual has technically taken the loan out in their own name, and will be pursued regardless of the outcome of any business project.
Furthermore, it is unlikely that any personal loan will provide the amount of capital required to see the project through.
This may sound like an easy option but it can be costly in the long term.
Unlike a business loan, where liability is limited to the organisation, a personal loan taken out to service the business’ needs can backfire if the project folds.
The individual has technically taken the loan out in their own name, and will be pursued regardless of the outcome of any business project.
Furthermore, it is unlikely that any personal loan will provide the amount of capital required to see the project through.
Going Into a Partnership
This is a more realistic way of raising some extra capital, especially if the partner is the ‘breadwinner’ in the team.
However, it must be remembered that, like any financial agreement, the profits will ultimately be lessened, and creating and directional input will nearly always be limited when a second party is brought on board.
Remortgaging
If planning on raising a large amount of capital and are considering remortgaging, using a mortgage broker to see the best deals is a must.
This is a source of finance that has come from the investor putting their own property on the line, so the best repayment terms, lowest interest and not forgetting the highest cash offer are of the utmost importance.
Again, however, this is a personally driven finance option; if the corporate side folds, the debt is still payable.
Branching Out In An Existing Company
Branching out in an existing company can be a safer method than personal refinancing, limiting liability for the individual and utilizing funds that would normally be sat dormant.
Selling Properties Before Completion
Rather than sink money into a project and then try to sell the houses, a newer cash flow method involves selling properties at a slightly reduced rate to raise funds and impress potential investors with ‘early sales’.
It is not possible to completely foresee the future, but by utilizing some savvy techniques, the road can be made significantly smoother with less financial outlay by the developer.
Housing Investment: Navigating the Road to Success
By utilizing savvy techniques, developers can make the road to project success significantly smoother with less financial outlay.
How construction companies can use CRM to increase profit!
How construction companies can use CRM to increase profit!How construction companies can use CRM to increase profit!
A company’s greatest asset is its reputation, and a reputation can only be built up by years of good service and hundreds of satisfied customers.
A company’s greatest asset is its reputation, and a reputation can only be built up by years of good service and hundreds of satisfied customers.
Traditionally, all professionals in the construction and building sector have been too busy working to concentrate on keeping in contact with their clients and customers.
Architects and property developers build a great relationship with their clients and then just wave them goodbye. And many a surveying company, or group of contractors, have little more than a basic spreadsheet of contact details, and a drawer full of business cards.
To keep customers loyal, manage data in a way that is tailored to their needs and likes, thereby vastly improving their customer experience.
And this is done with a Customer Relationship Management system, a process of collecting all the customer data in one software package that links every aspect of your contact with them. It centralises all information, safely, and efficiently stores it.
Staff productivity is greatly enhanced by automatic alerts built into the system to follow up instructions, and it helps target profitable areas, the software can double your profitability in a very short time.
So much of our business life is now spent away from the office, but the system is available 24/7 wherever you are, using either a mobile app or by using cloud storage, so that you can access all data and update in real-time online.
Every aspect of your business is stored in one simple system, contracts, projects, services, and activity information. Shared diaries and schedules allow everyone in the company to see what’s happening.
And this data storage is safe, it remains with the company long after the staff who in-putted it have left.
CRM does not just store contact details, every time a client has any kind of interaction with your business, an enquiry, a complaint, an appointment, it is logged in your software. It becomes easy to trace the different methods of communicating, so no more asking the customer to repeat the query, it is there, on screen in black and white.
Gone are the days of having staff on hand to answer phone enquiries, more and more people are using email, or form filling on the company website. Social media such as Facebook or Twitter, or SMS are now being used far more frequently, so a method of collating them is essential. Personalised communications made with the background knowledge found in the CRM system are effective and easy.
And it can be tailored to your needs, modified to alter the software to match the exact needs of your business.
With CRM you have a massive quantity of data that can help you improve your service. By addressing your customers with a background knowledge that will impress them, and the ability to analyse and improve your customer service.
A positive customer interaction builds the business rapidly, because the most effective advertising is personal recommendation, so keep your customers loyal and happy, keep your name on their lips.
Key Performance Indicators (KPIs) are metrics used to measure and track progress against specific business goals.
Deciding what kind of Key Performance Indicator (KPI) to measure for your business can be challenging.
This blog post will explore factors to consider when deciding what kind of KPI to measure for your business.
What is a KPI?
A KPI is a quantifiable or non-quantifiable metric used to measure and track progress against specific business goals.
KPIs can be quantifiable, like revenue or number of new customers, or non-quantifiable, like customer satisfaction or employee engagement.
At the end of the day, you might just be looking at how your progress is on your marketing strategy, sales strategy, or land surveyors’ performance.
Here are some high-level objectives you can set to work on your KPI:
I want my surveying business to reduce the number of reworks.
I want my surveying business to increase the number of sales in London.
I want my surveying business to get more calls from a specific type of clients.
From these objectives, you can generate the following types of metrics to measure:
Ratio of reworks vs number of projects, so you can calculate it like this: number of reworks/total number of projects (per week, month or year).
KPI to track for the number of sales: you can look at the conversion ratio from number of calls to measured survey bookings in London. For example, number of bookings for jobs in London/number of calls.
For this one, you might prepare a pie chart or a ratio of number of calls from architects in a certain period divided by the total number of calls. For example, (per week) number of calls from architects/total number of calls per week.
This one might be a bit hard but you can prepare a pie chart or a ratio of number of calls from architects in a certain period divided by the total number of calls.
The important thing to remember about KPIs is that they should be aligned with your company’s overall strategy.
Choosing KPIs that will give you the most insights into whether or not you’re achieving your goals.
It is up to you to generate these goals, we normally discuss these on a weekly basis with our team by looking at statistics from our business.
There are dozens of different KPIs you could choose to measure, but which ones are right for your business?
There are a few general categories of KPIs that all businesses should consider:
Sales KPIs: The measurement of calls and bookings.
This can be cost per acquisition, conversion rate, conversion rate per medium, etc…
Operation KPI: the measurement of failures, re-visits, errors, hours spent on a project or plan.
the measurement of failures, re-visits, errors, hours spent on a project or plan.
Safety KPI: the measurement of incidents, close call, etc…
the measurement of incidents, close call, etc…
Employee KPIs: These measures track employee productivity and engagement.
Examples include time to complete tasks, quality of work, absenteeism rate, and turnover rate.
Customer KPIs: These measures track how well you’re serving your customers and meeting their needs.
Examples include customer satisfaction scores, Net Promoter Score (NPS), customer churn rate, and lifetime value (LTV).
Customer KPIs
These measures track how well you’re serving your customers and meeting their needs. Examples include customer satisfaction scores, Net Promoter Score (NPS), customer churn rate, and lifetime value (LTV).
Financial KPIs: These measures track your company’s financial health and performance. Examples include revenue, profit margins, cash flow, and burn rate.
Financial KPIs: These measures track your company’s financial health and performance. Examples include revenue, profit margins, cash flow, and burn rate.
I’ll talk about them a bit more on this blog to give you a better idea of what we’re looking for in our surveying business.
I’ll talk about them a bit more on this blog to give you a better idea of what we’re looking for in our surveying business.
Why Should You Measure KPIs?
There are several reasons why you should measure KPIs for your business. By measuring KPIs, you can:
Get an insight into how well your business is performing
Identify areas where your business could improve
Benchmark your performance against others in your industry
Set targets for improvement
Monitor trends over time
Measuring KPIs can help you to understand where your business is performing well and where there may be room for improvement. This information can then be used to set targets and monitor progress over time.
I would use spreadsheets and if you have the money I would plug in and aggregate your data using Microsoft office business intelligence. It is pricy but you can replicate it
What Are the Different Types of KPIs?
There are four main types of KPIs:
Leading indicators measure something that happens before the desired outcome. For example, new website visitors would lead to increased sales.
Lagging indicators measure something that happens after the desired outcome. For example, sales would be a lagging indicator for increased profits.
Input KPIs measure an organization’s core processes. For example, a number of products produced per hour would be an input KPI.
Output KPIs measure the results of an organization’s core processes. For example, customer satisfaction levels would be an output KPI.
How do I find business objectives to write my KPI?
How do I find business objectives to write my KPI?
There are a few different ways that you can go about finding business objectives to write your KPIs. One way is to look at your business’s overall goals and identify specific objectives that would help you measure progress towards those goals. Another way is to look at specific areas of your business operations and try to identify objectives that would help you improve those areas.
If you’re not sure where to start, a good place to look for inspiration is other businesses in other industries. There are loads of articles on objectives for marketing or consultancy business that you can use to gather some ideas. See what kinds of KPIs they are measuring and see if there are any that you think would be beneficial for your own business.
You can get some ideas on your objectives by looking at your business strategiesbusiness strategies.
What sales KPI should I measure in my business?
What sales KPI should I measure in my business?
There are a number of different sales KPIs that you could measure in your business, but which ones you choose to measure will depend on your specific business goals and objectives. Some of the more common sales KPIs that businesses track include:
-Revenue: This is perhaps the most obvious sales KPI to track, and it can be helpful in gauging overall sales performance.
-Conversion rate: This KPI measures the percentage of leads or inquiries that are converted into actual sales. It can be a useful metric for evaluating the effectiveness of your sales team’s efforts.
-Average order value: This KPI measures the average dollar amount of each sale. Tracking this metric can give you insight into whether your prices are too low or too high, and whether you’re selling enough high-value items.
-Customer satisfaction: This KPI measures how satisfied your customers are with your products or services. Tracking customer satisfaction can help you identify areas where your business needs to improve.
What business operation KPI should I measure in my business?
What business operation KPI should I measure in my business?
There are a variety of business KPIs that you can measure, depending on your business goals. If you want to increase profits, you might measure KPIs such as revenue, costs, or margins. To improve customer satisfaction, you might measure KPIs such as customer retention or complaints.
There are a variety of business KPIs that you can measure, depending on your business goals. If you want to increase profits, you might measure KPIs such as revenue, costs, or margins. To improve customer satisfaction, you might measure KPIs such as customer retention or complaints.
And if you want to improve employee productivity, you might measure KPIs such as employee satisfaction or output per hour. It is important to choose the right KPIs for your business and track them over time to see if you’re progressing towards your goals.
And if you want to improve employee productivity, you might measure KPIs such as employee satisfaction or output per hour. It is important to choose the right KPIs for your business and track them over time to see if you’re progressing towards your goals.
What health and safety KPI should I measure for my projects and business?
What health and safety KPI should I measure for my projects and business?
There are a variety of health and safety KPIs that you can measure for your projects and business. Some examples include:
There are a variety of health and safety KPIs that you can measure for your projects and business. Some examples include:
Number of reported incidents
Number of injuries
Number of days lost to injury
Cost of workers’ compensation claims
ratio of safety inspections to accidents
Training completion rate
hours worked since incident
ratio of incident vs hours worked
Each organization will have different priorities regarding health and safety, so it’s important to tailor your KPIs to match your specific goals. By measuring the right KPIs, you can identify areas where your health and safety program is succeeding and areas where improvements need to be made.
What marketing KPI should I measure in my business?
What marketing KPI should I measure in my business?
Assuming you are asking about marketing KPIs (key performance indicators), here are a few examples to consider measuring: -Number of website visitors -Website conversion rate -Cost per acquisition (CPA)
How to Choose the Right KPIs for Your Business
Measuring leads generated, sales pipeline velocity, customer churn rate, and net promoter score (NPS) can be general examples of applicable KPIs for many businesses.
When choosing the right KPIs for your business, consider the type of data you want to track, such as financial data, customer data, or sales data.
Once you know the type of KPI you want to track, identify where you can get the data, and consider finding ways to get the information if it’s not apparent.
For example, tracking the conversion ratio of marketing efforts, such as the number of calls, emails, and enquiries converted to bookings in a certain period, can help monitor business performance.
Using Xero or Spreadsheets
Track the conversion ratio of marketing efforts for land surveying business.
Check the number of calls, emails, and enquiries to converted bookings in a certain period.
Monitor bookings or calls per week, month, or quarter.
Monitor basic calls for new measured survey enquiries per day on average.
Highlight any drop in calls on a spreadsheet.
Check the service ratio in the period and how much services are going towards measured building surveys, topographical surveys, monitoring surveys, or settingout (engineering surveying).
Aligning KPIs with Business Goals
Consider what goals you want to achieve with your KPIs.
Align your KPIs with your business goals to ensure they are truly helpful in measuring your progress.
Considering Resources for Tracking KPIs
Take into account the resources you have available for tracking KPIs.
Use simpler KPIs if you don’t have much time or budget for tracking.
Use more complex KPIs if you’re willing to invest more in tracking.
The bottom line is that there is no one-size-fits-all answer when it comes to choosing KPIs. The best approach is to carefully consider your business goals and needs and then select KPIs that will help you meet those objectives.
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How to Implement KPIs in Your Business
How to Implement KPIs in Your Business
KPIs, or key performance indicators, are a vital part of any business. By tracking KPIs, businesses can identify areas that need improvement and make necessary changes. But how do you actually implement KPIs in your business?
Defining success looks like for your business is crucial. Identify your goals and objectives, and what you want to achieve. Once you have a clear idea of what success looks like, you can start to identify which key performance indicators (KPIs) will help measure progress towards these goals.
Decide which KPIs are most important for your business. Not all KPIs are created equal – some will be more relevant and important than others. Consider what data you need to collect and track, and which indicators will give you the clearest picture of how your business is performing.
Put systems in place to track your KPIs. This might involve investing in new software or hardware, or simply setting up some kind of tracking system manually. Make sure it’s something that’s easy to use and maintain so that you can keep on top of your KPIs on an ongoing basis.
Conclusion
Choosing the right key performance indicators (KPIs) for your business is crucial. Follow these tips to ensure you’re choosing KPIs that will help you achieve success in your business: focus on metrics relevant to your industry, set measurable goals, and choose KPIs that align with your company’s values.
There is no one-size-fits-all answer to this question, as the best KPIs for your land surveying business will vary depending on your goals, and other factors.
Some general tips that can help you choose the right KPIs for your business include focusing on metrics that are relevant to your industry, setting measurable goals, and choosing KPIs that align with your company’s values.
By following these tips, you can ensure that you’re choosing KPIs that will help you achieve success in your business.
If you have any suggestions or edits that you want to make on this post don’t forget to reply!
If you have any suggestions or edits that you want to make on this post don’t forget to reply!
Whole life cost analysis (WLCA) is a decision-making tool that takes into account all costs associated with owning, operating, and maintaining an asset over its entire life cycle
In construction, the whole life cost analysis (WLCA) is a holistic approach that considers all costs associated with owning, operating, and maintaining an asset
Over the course of its entire life cycle, which takes into account not only internal costs, but also external costs such as energy consumption, waste disposal, and environmental impacts
What is Whole Life Cost Analysis?
Whole-life cost analysis is a technique used to assess the total cost of ownership of an asset over its entire life cycle, as outlined in the Joint IFC-SNC-LIA-ISO Guide for Whole Life Costing of Buildings (ISO 16182:2018)
This includes all costs associated with acquiring, operating, and maintaining the asset, as well as disposal costs
As RIBA’s Plan of Work indicates, WLCA covers the project from Stage 0 to Stage 7, from strategic definition to in use (post-construction), providing a comprehensive framework for managing the total cost of ownership
Understanding Life Cycle Costing and Whole Life Cost Analysis
Life cycle costing (LCC) is a tool that enables organizations to make informed decisions about which assets to purchase, optimize their use, and replace them at the right time. According to a study by the Project Management Institute (PMI), LCC takes into account all relevant costs incurred throughout an asset’s lifespan, from acquisition through disposal (PMI, 2020). This approach provides a more comprehensive view of an asset’s true cost than traditional methods that focus solely on the initial purchase price.
When applied correctly, LCC can help organizations save money by avoiding premature replacement of assets that still have useful life remaining. For instance, a study by the National Center for Biotechnology Information (NCBI) found that extending the life of assets can result in significant cost savings (NCBI, 2019). Additionally, LCC can help organizations optimize the use of existing assets to minimize operating and maintenance costs. By identifying opportunities for cost reduction, organizations can achieve long-term cost savings and improve their bottom line.
LCC is often used in conjunction with whole life cost analysis (WLCA), which is a powerful tool for making informed decisions about investments. According to a research paper published in the Journal of Cost Engineering, WLCA takes into account all of the costs associated with an investment over its lifetime, providing a more accurate picture of the true costs of an investment (Journal of Cost Engineering, 2018). This information can be used to compare different investment options and make informed decisions about which option is best for the organization.
The benefits of WLCA include more accurate decision making, increased transparency, and improved long-term planning. By considering all of the costs associated with an investment, WLCA provides a more accurate picture of the true costs of an investment. This information can then be used to compare different investment options and make informed decisions about which option is best for the organization. Furthermore, WLCA forces organizations to consider all of the costs associated with an investment, not just the initial purchase price, leading to increased transparency and better decision-making.
In addition, WLCA helps organizations plan for the future by taking into account all of the costs associated with an investment over its lifetime. This information can be used to develop long-term budgets and make informed decisions about future investments. By incorporating WLCA into their decision-making process, organizations can achieve more effective cost management and improve their overall financial performance.
Real-World Applications of Life Cycle Costing and Whole Life Cost Analysis
Life cycle costing and whole life cost analysis have numerous real-world applications across various industries. For instance, in the construction industry, LCC can be used to evaluate the cost-effectiveness of different building materials and designs. By considering all of the costs associated with a project, including upfront costs, operating expenses, and maintenance costs, LCC can help construction companies make more informed decisions about their projects.
Similarly, in the automotive industry, WLCA can be used to evaluate the cost-effectiveness of different vehicle models and production processes. By considering all of the costs associated with a vehicle, including manufacturing costs, operating expenses, and maintenance costs, WLCA can help manufacturers make more informed decisions about their products and production processes.
Reduced Risk and Improved Relationships with Stakeholders
According to a study by the International Construction Management Association (ICMA), whole life cost analysis can help organizations reduce risk by considering all the costs associated with an investment (Source: ICMA). This approach enables organizations to make informed decisions, avoid costly mistakes, and mitigate potential risks. By evaluating the total costs of an investment, organizations can better manage risks and ensure that their financial decisions align with their overall objectives.
How to Create a Whole Life Cost Analysis
A whole life cost analysis is an evaluation of the total costs of designing, building, and maintaining a construction project over its entire life cycle. The analysis considers all aspects of ownership, including purchase price, installation and operating costs, maintenance and repair costs, and disposal costs. To create a whole life cost analysis, organizations should first identify all the cost components that need to be considered, which may vary depending on the type of product or system being evaluated.
How to Use Whole Life Cost Analysis in Decision-Making
Whole life cost analysis is a powerful tool that can help decision-makers choose the most cost-effective option when considering different products or systems. By taking into account all the costs associated with an investment over its lifetime, organizations can get a more accurate picture of its true value.
Performing Whole Life Cost Analysis: A Comprehensive Guide
Whole life cost analysis is a widely used method for evaluating the total cost of an investment over its entire lifespan, rather than just considering the initial purchase price.
According to a study published in the Journal of Cost Engineering, this approach can help businesses make more informed decisions about investments.
Once all the relevant information is entered into a spreadsheet or software, analysis can begin.
This involves examining patterns and trends in the data to identify which investments are truly costing the most money and which ones are providing the best value for the money.
A study by the National Institute of Building Sciences found that using whole life cost analysis can help businesses reduce costs and improve return on investment.
It’s essential to approach whole life cost analysis with caution when it comes to predicting future costs.
As mentioned in a research paper by the University of Cambridge, it’s often difficult to accurately forecast future expenses.
Therefore, businesses should err on the side of caution when making assumptions about future expenses and consider all possible scenarios.
Additionally, some investments may have hidden costs that are not immediately apparent, such as increased maintenance or repair costs.
To ensure the accuracy of whole life cost analysis, businesses should also consider conducting regular reviews and updates to the analysis.
This can help identify areas where costs may be increasing or decreasing over time, allowing businesses to make adjustments and optimize their investment strategy.
Conclusion
In conclusion, whole life cost analysis is a critical tool for businesses to use when making decisions about investments.
By considering all the costs associated with an investment over its lifetime, businesses can gain a clearer understanding of the true cost of an investment and make more informed decisions.
