Mistake, yes it’s common but do you know what we have to pay for a small mistake in your business, if we say you can even suffer a big loss in your business just by making a small mistake then will it be digestive for you? Of Course NO, then why the people doing real estate business are repeating the same mistake every time. So, let’s look at 3 deadly mistakes in the real estate business that every entrepreneur needs to keep in mind so that they can avoid the mistake and also build consistency in their business.
Selecting the wrong location for a project
Many of the developers selected locations for their project, they felt that there will be a lot of development in future, but they have not done any research, nor have any documentary proof. They are able to believe that the location of this project, which they selected on the basis of market opinion is the best for their business, even they do the investment and start the project, but in the end they don’t get any response from the project according to their
expectation. Many times it happens that there are no fixed projects due to the change in government policy, the project is delayed or there is not as much development in an area as there is an expectation. What to do in such a situation if you have made this mistake as a builder or developer, then how can you progress in the project? Here is the solution, No matter what kind of project it is, if people will not like the surroundings if people do not have a proper resource to reach the workplace or the atmosphere or environment of the project is not good, in that case project cannot give the returns what you have invested.
Over borrowing from the market
It is generally seen that a builder started the project but did not get that many bookings, and due to the less booking, there was a shortage of funds to complete the project, and the commitment to complete the project which he asked the customer. For this, the builders or developers borrow money from private lenders in the market at the wrong rate. Now suppose that the money he has borrowed is at the rate of 2%, so yearly he will give interest of 24% for the year. The profit of the project that he had to give, his team, his channel partners who helped him in selling the project, the profit is going in the hand lenders from whom he borrowed the money, and the investor earned money just by investing money. Now, as per calculation of builder, he thinks that he will soon sell the project and get the profit but as he borrowed money from the private lenders he has to pay lenders and at last he did not get any profit in the project. It is the common mistake done by the real estate business persons where they suffer vast come back in their business, if you really want growth in this industry then you should have proper project report and you have to take the opinion of the consultant before planning a project or you have to work along with a trainer or coach to grow more in this industry.
Over expansion without proper planning
Planning plays an important role in running a business, it does not matter if you are a MNC or a small business. Not having planning is business, is just like setting off on a journey to an unknown destination without having a roadmap.It is very important to look after every function of the business, you have to pay attention towards every function of your business either it is marketing, management, sales or accounts and many other departments on which you have to focus and you have to run them properly. When there will good people and active team in your business then only will can make expansion more profitable for your company, but without having proper plans or proper team when builders and developers do the expansion at that time the over expansion destroys the whole group.