Things to do to grow as a great builder!

Venu Bhagavan, Founder-B Club

The word ‘Builder’ immediately reminds us about the person who constructs and sells houses. There are a lot of builders. But there are very few great builders. But what is the difference between a normal builder and a great builder? what it takes a normal builder to become a great builder? A typical builder only builds the house, but a great builder builds his company’s culture which eventually takes him to greater heights.

The Covid-19 brought about great changes in human lives, thoughts, and priorities. The desire to enjoy a life of health, happiness, and peace of mind, has become one of the most important priorities of many people right now. So far, all those who have given priority to luxury, have realised the importance of living close to nature. As a result, land prices have skyrocketed. The price of villas too are growing due to people’s increasing love for nature. Pre-launch offers are already rampant due to sudden demand for houses due to Covid pandemic. Some people have shown interest to buy flats in skyscrapers which were being offered for attractive prices. Only time will tell how many of these projects will be completed.

The tradition of pre-launch sales, has been around for a long time now. Builders normally inform their dear ones and loyal customers who are willing to invest in the project with confidence in them. Some of the leading builders would sell their properties to a select number of these known customers/investors without the need for marketing. But now the market has completely changed, with marketing dominating the market. No matter how good a builder is, there is no guarantee that they will be able to sell all properties without knowing some good marketing techniques. At the same time, good marketing does not mean that you can become a great builder if you sell the properties without proper approvals. But there are more builders in the market today who can market and sell their properties than those who can actually build them with quality and standards.

For cash flow

In the present circumstances, a good builder has to build his organisation culture first, before constructing the building, in order to deliver the properties to customers as per schedule and ensure adequate cash flow without getting into trouble. In fact, the delay would benefit only those who own the land due to escalating land prices and the builder can benefit more by completing the building at a faster pace. Thus, he/she can ensure a better cash flow. If there are potential employees in the company who are able to control costs, have sales with a constant cash flow, and have financial discipline, such a builder need not look back never again. Instead, the developer can focus on timely completion of the project and hand it over to the customers which will ensure a longer stay in the market. In fact, if the market slows down, cash flow pressure will increase for most builders. But for most companies right now, their credibility is facing a far greater threat than the cash deficit. Anyone who overcomes such challenges, can become a great builder.

It is very easy for anyone to enter the real estate sector. Own house is every person’s dream and there are numerous people to cash in on this dream. There are numerous cases where people without proper experience in the construction sector, entering the realty market with the sole aim to make money, by selling the properties and failing to hand them over to the customers in a timely manner. Hence, the credibility factor is given high priority. At the same time, there are many opportunities for well-intended and capable builders to thrive in this field. If the builder or the company gives more importance to long-term profits than temporary gains, the brand value as well as the business will increase manifold.

A good organisational culture will keep that the company as a great brand in the market. The builder constructs a building very easily, but building an organisation’s culture is not that easy. That is a long process. The organisation which develops its culture systematically with commitment and discipline, develops itself into a great organisation. Companies that do not have the good organisational culture will gradually reduce themselves to lower levels. In fact, it is the founders of each organisation who are the responsible for developing the right organisational culture. If the customer’s trust is gained with uncompromising values, the growth of that company is assured. Customers will become fans of the company and do the marketing voluntarily by informing about the company and its projects within their personal and professional circles. Eventually, they become part of the company’s growth story. Hence, it all depends on the values and trust gained by the company. In case, the company compromises in its values, there will be cracks in the walls of trust and eventually lead to collapse of the company. Hence, trust is the most important feature that must exist between the buyer and the seller in any sector, for the company to grow and survive.