The down cycle in the economy is normal economics 101. While many hoped the bailout would speed a recovery faster, it is becoming clear that this down cycle will be long and the upswing (which will come) is likely to be slow in its development.
This means that many companies that could survive a few months of sluggish-to-frozen sales are having to reconsider what to do now. What adjustments are needed now to survive for 12 to 24 months of dismal markets?
Does your company even acknowledge this situation?
We are adapting quickly and finding new services to offer, particularly to entities that may be downsizing or that will be downsizing soon. We are not looking to take advantage of misfortune. Actually, we hope our efforts will help all types of business survive, even if it is at a reduced size.
We firmly believe that companies that just slowly cut staff and cut expenses without changing how they do business will be at much greater risk for failure than those make significant changes in how they operate. The former is like the "death by a thousand paper cuts."
Now, change is hard, particularly when people are scared. And changing something that used to work to something different during turbulent times can be very challenging. And not all will change... but survival is not mandatory either.
For instance, we have accelerated the schedule to offer office space with support services. This makes month-to-month (or annual) office space with fax, phone, internet, copier, etc available to companies that may need smaller, less expensive offices without a long-term commitment. This was in our original plans for our new office building (we even had the security designed with this in mind) but had not yet been offered. But we are offering it now and doing so immediately.
We are also looking to help businesses that may close receive compensation from future orders from their clients. This will be common with surveyors, home inspectors, and other service providers where there are way too many providers for so little business. We believe this effort helps the folks that move on to another career and best serves their clients too.
Candidly, we see the current situation as a great time to prepare to absorb market share left by those that exit this industry. As Buffet says, "Be fearful when others are greedy and greedy when others are fearful."
HERE IS WHAT I HOPE YOU'LL SHARE HERE FOR OTHERS....
What ways has your business made (or preparing to make) SIGNFICANT changes to survive the coming months?
As a Realtor with a working spouse I feel like it may be the only way that I have been able to hang on. I hope that for many that were here for the 04-06 market put a little change in the bank, since they are likely to need it right about now.
Michelle Roethle Effective "Real Estate" Solutions (Windermere Peninsula Properties) Michelle, perhaps people did has you hoped and put money away but I fear few did. And even if they did, was it enough? It will be interesting to see what others are doing to survive (as opposed to simply waiting to go out of business while fearing change)?
Glenn: Yes. My company has anticipated the current challenge and I'm thankful for that. As for me, I just keep plugging. Who knows if I'll make it through to the other side. The next 6 months will be very telling. So far so good though. Thanks for reminding me what I need to keep doing!
Adding my RE license to my staging credentials , so I can sell the listings I stage.
Paul McFadden Mortgage Loan Originator Renton Washington Mortgage Loans (Exact Financial Group) Paul, sounds like you have a proactive, smart company. An exception in this industry but a good exception! G
Kathleen Lordbock- HSE,RESA,SEA,SD ~soon to be Realtor/Staging Specialist~ (Re$ale Design & Home Staging) Hi Kathleen, sounds like you are expanding your market opportunity! We bought a house recently and in house shopping, we found the well staged houses sold so much faster and often very close to original listing prices (which sometimes were, in our opinion, too high). By being a consumer and watching the results on houses we did not buy, it made me a big believe in staging. Of course, so many think they can do this themselves (and a few can) so having another tool in your business arsenal will be great! Thanks, G
Glenn: Yes I do feel lucky. It's funny. I didn't know these guys at all when I entered a business I had no experience in. It was all faith which most of the time isn't a bad way to live!
Hello Glenn
My company had already been preparing for the down side. I have family that has been in real estate for many many years, so they always stressed the importance of putting away for the rainy days since all of our money is transactional. Also another thing we have been doing is for the last year or two we have not turned anyone away. The people who did not qualify were put into a financial education program, with a company that had many years of experience working with people who were facing financial devastation and turning them around. So, now with the market so low the majority of the borrowers who did qualify are ready and able to purchase now. The commissions are not as high but we have many people we have worked with. The power of referrals has kept us moving strong, and we are continuing to build our pipeline. If anyone wants info on the programs just email me or call me and I will get you the website. The company is across all fifty states.
Arthur Harris
(909)770-4994
The focus for 2009 has to be first time homebuyers. If you can build, implement, and stay on it like a bad stain, you can survive. It is harder work, but it is work to be had!
Paul McFadden Mortgage Loan Originator Renton Washington Mortgage Loans (Exact Financial Group) Hi Paul, luck, effort, faith, work... all great things that many people ignore. Thanks! G
ARTHUR HARRIS (FDI) Arthur, you guys are doing all the right things to be trusted and valued advisors... the type of people the best customers all want to work with. Keep up the great work!! And thanks for posting!! G
Remember the days when a good loan processor was almost impossible to find? Now most of them are out of work!
Memphis is on the cusp of stable. Lot's of agents are throwing in the towel. Sign of the times. Even the local board has laid off administrative personnel. Holding on for the long haul is all about survival of the fittest. The best is yet to come.
Rich Sweum (Homestead Mortgage) Hi Rich, I think credit-worthy folks will find this is also a great time to upgrade homes! We just did that! G
Colleen Cooley, CRS - Jupiter Florida Realtor (Seacrest Florida Properties) Hi Colleen, yes the world of real estate and loans changed fast and to the surprise of most. Now the agile and inventive will be the survivors. Thanks, G!
David Saks - Real Estate Broker (The Real Estate Mart of Tennessee, Inc.) Hi David, thanks for the info on Memphis! It sounds much like Birmingham and better than South FL and many other areas. But everywhere the market is different and will be different for a long time, even with an upswing. Thanks! G
I AM GOING TO DROP SOME KNOWLEDGE THAT COULD CHANGE YOUR REAL ESTATE AND MORTGAGE BUSINESS FOR EVER. KNOWLEDGE IS ONLY POTENTIAL POWER, THE POWER LIES IN YOUR ABILITY TO PUT THE KNOWLEDGE TO USE!! IT HERE FOR THE TAKING.
IMAGINE GETTING PAID EVERYTIME YOU OR ANYONE YOU KNOW GOES ON THE INTERNET, SENDS A TEXT MESSAGE OR CLICKS ANY ADD ON THE NET. IMAGINE STARTING A NETWORKING SITE THAT PAID YOU TO INVITE PEOPLE. IF YOU MISSED THE GOOGLE BOOM DO NOT MISS THIS. THE MONEY IS ON THE TABLE SEND ME A MESSAGE AND LET ME KNOW IF YOU WANT TO GET PAID. I'M SO SERIOUS. WHEN THIS GOES PUBLIC YOU WILL BE SET FOR LIFE. LET ME KNOW IF YOUR IN!!! DON'T BELIEVE LET ME PROVE IT!!!!!!!
NOW LETS TAKE A LOOK INTO OUR WORLD THE REAL ESTATE AND MORTGAGE INDUSTRY. FOR MOST OF US HELPING PEOPLE IS IN OUR HEARTS AND WE REALLY DON'T WANT TO JUMP SHIP RIGHT. IMAGINE BEING IN A COUNTY WHERE EVRY HOUSE IS BUILT ALL THE STORES AND RECREATIONAL AREAS ARE UP. THIS IS THE PERFECT COMMUNITY TO WORK, PLAY, LIVE AND ITS AFFORDABLE!!! THE ONLY PROBLEM WAS NO ONE KNEW ABOUT IT. WOW THE DREAM WORLD HUH!!! WHAT IF EVERY TIME YOU TOLD SOMEONE THEY COULD WORK HERE PLAY HERE LIVE HERE AND EVERYTIME THEY PAY THEIR MORTGAGE YOU GET A CUT OF IT.NOW LETS GET BACK TO REALITY. THE TRUTH IS YOU HAVE THAT SAME OPPORTUNITY TO PIONEER A GROUP OF SERVICES THAT NO ONE KNOWS ABOUT AND THAT WOULD HELP YOUR REAL ESTATE BUSINESS EXPLODE, EXPLODE, EXPLODE OHH DID I SAY EXPLODE. HELLO PEOPLE HOW ELSE CAN I PUT IT. THIS OPPORTUNITY IS LIFE CHANGING AND MORE IMPORTANTLY THEN THAT IT'S NOT ON THE GROUND FLOOR ITS IN THE BASEMENT. IF YOU RECOGNIZE OPPORUNITY LET'S DO BUSINESS. CHECK OUT THE FOLLOWING LING AND GIVE ME A CALL TODAY!!!! WWW.FDIADVANTAGES.COM
ENOUGH OF THAT, IS THEIR ANYONE WHO DOES LOAN MODS. SOME OF MY CLIENTS NEED THEM AND I REFER THEM TO SOMEONE ELSE AFTER I HELPIND THEM WITH BUDGETING AND INREASING THIER FICO AND LOWERING THIER DTI. SO LETS NETWORK. CALL ME
ARTHUR HARRIS
909-770-4994