Being Prepared Brings Real Estate Solutions

 

 

Over the years I have collaborated on my share of real estate and business projects which have worked quite well. There have also been some that have not gone well. When that happens, I make it a point to learn what I can about what went wrong to plan on not making the same mistakes again. One element I stress to my valued clients, students, and connections is what I call the “Phase 2” element of your plan.

The Business Plan needs to detail how you will execute upon a successful acquisition or partnership to work toward your exit strategy and goals. There should be that moment in time when you ask yourself (and your partners or team), “What could go wrong?”. Although your Plan is, obviously, to succeed, there is a lot to be said for what would happen in the event of a problem when it is far too late to back out.

Unfortunately, the below linked article is one example of what could “go wrong”. A new restaurant in Chicago was recently burglarized and vandalized within 48 hours of opening its doors. While chances of this happening are higher in Chicago and many other big cities, security measures are something which are important to any business with a physical location. This is not to say that the owners could have or should have been prepared for a tragedy like what happened. 

A solid Business Plan is about what happens immediately after. There are concerns about whether insurance will cover enough of the losses, what becomes of valued employees, and the ability to market the location after word of the tragic event goes public. In the case of a new restaurant, the ability for patrons to feel safe and confident about returning or trying it out can be shaken. 

I know of a situation (which I was not involved in at any level) in which a fire forced an apartment building to completely vacate due to millions of dollars in repairs being needed. When it turned out that the insurance coverage only got them a settlement check which was millions short of what they needed, the ownership group had to walk away. Investors lost six or seven figures on their original investment, but collectively chose that path over investing millions without any signed leases.

Chances are the Business Plan for the burglarized restaurant or burned apartment building did not include those specific events. From what I know about each situation, the owners were caught off-guard by the horrendous events and forced into significant decisions about moving forward. The lesson is to make the effort to plan for any eventuality as best you can. Doing so should be part of a complete Business Plan. Find out how you can put my 30+ years of experience in writing and improving Business Plans for as little as $500. It could make you and your team “first in” with a solid solution!

 

https://www.fox32chicago.com/news/chicago-restaurant-hit-burglary-less-than-48-hours-after-opening