Tell me if this sounds familiar? Working day after day, we get frustrated, see an opportunity to start a business; we sit on it for a while, daydreaming in our downtime. We chat with our colleagues over smoko (lunch), listen to everybody’s two cents worth of advice. Then the people that would be our potential clients give us the unofficial, “yeah we will give you ago.”
I am pretty sure that we all can relate from our own experience or know someone that has/or is going through the whole “startup” of their new business. Just the same as Yusuf, the founder of Precision Cranes.
Then it happens, on the back of everyone’s support we throw caution to the wind and get the ball rolling. Just like Precision Cranes, most guys, in the beginning, start out as a labour-hire business. Let’s face it; construction is so capital intensive that most of us are putting a second mortgage on our homes to get started. And that is where labour hire lets us leverage the principle contractors buying power with materials, and we take a much smaller margin in return for a significant reduction of risk.
Precision Cranes startup route
And as Yusuf founder of Precision Cranes has begun his journey into the expensive, heavy lifting sector, the labour hirer route allows him to leverage the builders market position. Where the builder can dry hire tower cranes and Yusuf can arrange everything else; the operator, doggmen, lifting gear, crane installation and all the rest.
It’s like a safety net, a way that allows the principle to remain competitive while we get our foot in the door. There is a downside, and I am sure a lot of us have found this out the hard way, much like Jim did from Starbuck Excavations.
Where Jim had purchased his first digger and to get the “ball rolling,” he would do manual labour when his machine was not in use but still onsite. To the builder’s advantage, he would only charge full price for the few hours the machine was in use. And for the remainder of his time, he would charge a much lower labourer’s rate.
The true nature of construction
And it highlights the underlying culture of the industry, the sense of comradery, yet the dogged world we call work. Where on the one hand we are more than willing to give someone a go, yet once you have started, you are now just the same as every other construction business out; fair game, where you can be eaten alive or taken advantage of at any moment.
Yusuf is no stranger to the in’s and out’s of the construction industry working as a tower crane operator. I am sure as he grows Precision Cranes from labour-hire into equipment hire, there will be plenty of war stories to be told.