In times of market change…. fortunes are made! Don’t shrink back, the prepared investor is the wise businessperson who will survive and even thrive in a rocky market.
Corrections will happen, so what can you do to be ready for times like these?
First, DON’T Worry! It only paralyses you from taking the steps necessary to keep your business strong. Focus on getting back to the three fundamentals that will not only carry you through rocky markets but may help you thrive.
Most investors who bother to write a business plan never take time to review it. Ask hard questions about the health of your business. What were your goals and are they still relevant to your life and financial plans? Are you following a strategy that will allow you to achieve those goals?
Markets change and your risk tolerance changes, so should you balance your strategy by investing in other markets? This may seem scary at first but remember that with the right people on your team it can be easier to achieve than the properties that you have right in your own market. Begin connecting with a market in which you have family; or a place that you would like to visit. Develop relationships in those markets with your prospective team known as the “core four.” This is your realtor, your property manager, your lender and your contractor.
Refine your bookkeeping systems so that you more keenly understand the health of your business. Set aside regular times each week to enter data and review your financials. Print out and review your financials as you would if you were getting ready to take on a business partner. Yes, this seems scary, but you are running a business and it is paramount to being solid.
Review your customer service plan on how you add value to your tenants. Happy tenants will stay in your homes longer if they are content and feel valued. Make it a point to connect with your tenants.
Take time to get out of dodge for a vacation or visit…. I always find it amazingly refreshing when I can go to new areas and discover new approaches to life and business. There is nothing to say that you cannot bring it back home and make it your own.
Any successful entrepreneur knows that there is no room for swimming in the sea of fear and anxiety. We must rise above that fray and see the possibilities. As Forbes magazine shares concerning Detroit’s resurgence….”it is successful for the mere fact that it is reclaiming its stature. It has begun to revive the city’s soul…. where once people saw no future in Detroit, they now see possibilities….”
If Detroit can do it….so can we!