Pressure – it’s an unavoidable part of any business. It’s the inevitable build up of intensity as deadlines draw near, where you feel squashed and squeezed to make decisions and meet the expectations of the initial promise made. And then, as if by magic, or more likely the sweat of determination, perseverance and sheer terror, you get it all done – you make the agreement, you tweak the details to comply, you ensure everyone is on board and you finally make the decisions necessary to allow the next phase to start. And so, the cycle continues.
Although this cycle is true for any business, property development is one industry of long term planning and large financial risk. Getting it right is crucial and getting it wrong can be financially disastrous.
Property development is a business of many phases, all of which have their own built in pressure valve. Unexpected opposition from neighbouring communities, unforeseen environmental issues and the breakdown of negotiations are just some examples of where the pressure is intensified and can cause a project to come to a halt.
Consider this – first you have to source the right parcel of land, taking into account a host of factors like, demographic, infrastructure, supply, demand. Then you may have a negotiation stage with financial partners, in the case of joint ventures and investors. Following this, the all important design and development phase, where you tackle issues relating to environmental planning, locality requirements and guidelines, architectural design and the council approval process. This stage can be revisited several times to strike the right balance between living requirements and commercially viable options. Then comes the building phase, bringing with it a whole new set of unique pressures, and lastly, maybe even a sale process.
There are 2 main categories of pressure – necessary and unnecessary.
Necessary business pressures will help keep a project moving along and maintain a smooth transition between each stage. With deadlines and targets prepared, you will be obliged to make decisions to keep a project on track.
Unnecessary business pressures are usually due to a lack of planning and ultimately, they are the pressures we put on ourselves. Maybe we have promised something we can’t deliver or we fall short of expectation just because there was no measure in place to keep us accountable from the beginning.
Don’t be disheartened by the pressure of property development. I can assure you that pressure is felt in every industry, maybe in differing degrees but pressure nonetheless. The result though, is well worth it. To put it simply, property development is a creation process. It’s the idea of building something from nothing. It can add value to someone’s life and enrich a community spirit. It has the potential to provide a financial head start for yourself and your future family. It is an asset that you can see.
Pressure in business is unavoidable, but there is a way to dissipate the pressure to avoid overwhelm and keep a cool head. Having the right team around you, a dependable, knowledgeable team of professionals who can help you plan your project and provide professional advice along the way is imperative and makes all the difference.
DISCLAIMER – Alleura recommends each individual seek the services of a qualified service provider before undertaking any financial investment. The information provided here is for general information purposes only. It is not intended as financial or investment advice.