The year 2020 has been one like never before, and there is no denying that almost every business in the world will have to revisit its strategies to stay afloat, let alone succeed. It is widely believed that the impact of Covid 19 could be far worse than the great depression of the 1930s, and it is obvious that the old-school classical business strategies will become a thing of the past. How likely are you to survive this new world order unless you are willing to adapt and adopt and do so in a timely manner?
As we all know, Trillions of Dollars of wealth has simply vanished from the face of the earth. The new world order has affected everyone – those that had more, lost more and the ones that had less lost less. In fact, it is believed that more wealth vanished since Covid 19 than was created in the last 10 years! This pandemic did not even spare some of the wisest Investment Gurus of the world – Warren Buffet better known as the Oracle of Omaha, saw his wealth shrink by a whopping $86 Billion Dollars and Europe’s wealthiest & wisest man, Bernard Arnault lost $30 Billion during the Covid crisis! No one saw this coming, and no Individual or Corporation big or small had ever planned for this.
Now what we need to understand is, how will this impact us? We all know that Real Estate has historically always been the largest component of wealth globally and as wealth shrinks so is the impact on the real property because now there is far less wealth for the same amount of real property! At a very Macro level, the quantity of Wealth has shrunk but not the availability of Property which means there is a lot less money floating around. The US Fed Reserve and the European Union may print more currency but what about the rest of the world?
This is the time for the smartest and the brightest to stand out while the old order will be changing very rapidly. This is your time to decide if you are going to continue to be a part of the same old ship that does not seem to shift course in spite of the biggest cyclone in human history or are you going to jump the sinking ship and get into something that is simpler, tidier and easier to manager? There is no question and no doubt that our Real Estate Industry is having one of the largest impacts worldwide to adjust to this new world order.
How do you take advantage of this most unique situation and turn it around in your favor? For starters, this is an ideal opportunity to give yourself a challenging and, more importantly, honest look in the mirror! Ask yourself what is more important?
Is it how much you are paying for everything today to run your business
What value each item you are paying for is bringing to your business?
Remember Zero multiply by Zero = Zero so cheap may be no good and expensive may not be good either. What is most important is what is the ROI and value that each item is bringing to your business?
Start by asking yourself some basic questions…. is it worthwhile paying any Team or Company or Brokerage, etc that does not add value to your business.
The following are the Core Fundamentals that you need to focus on NOW!
1. Get out of your comfort level now before it is too late and becomes really uncomfortable
2. Identify YOUR strengths and leverage them while being fully cognizant of your weaknesses. Be honest with yourself.
3. Know YOUR Priorities for yourself, your family and your Company
4. Eliminate all Unnecessary Expenses that don’t add value to your Business
5. Run a tight shift and stay lean. This is not the time for lazy asses
6. Stay focused on what you do best. Don’t throw the net too far and keep it tight