Develop A Plan That Has Good Timing.

In the last post on this blog I spoke of describing how this new business model we will develop has a lot of components in it that meet some good timing characteristics.  Good timing is not critical to include in a new business for success.  However, it sure helps a lot if your product or service produces a 'fix' for the consumer to use that comes in the nick of time.  When your business model holds a solution that is very timely to the market, your chances for good success are improved tremendously.  Good timing is a great asset to a business model.  As you develop your business model, make sure you search for ways to find how your business can become part of a 'good timing' effort. 

Good timing moves are hard to find.  Business success depends a lot upon good timing.  It is a success component that often keeps its secret in a 'hard-to-define' capacity.  Sometimes we see what would have been good to offer the consumer well after the demand was met or secured by other suppliers.  The real trick is to be first to the market.  Being first to the market does not always secure your model with the lions share of the business, however.  Being first to the market means you had some good indications that helped your model to line up its business activities with what was happening in consumer demand.  You will also notice you were not the only one who noticed what the consumer would accept or need.  You will have competition.

The business model we will be developing has the potential to provide some good timing.  By the time we get the model designed, the business model initialized, the key relationships secured, the funding sources arranged, the approvals secured to do the projects as they need to be done, the construction work completed and the marketing process engaged the real estate demand for what we will have to offer will be back on a growth pattern strong enough to help fill our consumer needs.  The real estate industry has taken one of the largest 'hits' in our downward spiraling economy.  By the time we put this business model together and get it market ready, our real estate market demand will have repaired itself and be back on track for growth.  Our timing is looking very good.

What's more, we will be working to design our business model to address a specific niche in the market place that will increase in demand as time moves along.  Certain elements in the marketing world have become challenges to the residential consumer who have above average means yet want to live nicely beyond the standard bar of what they can afford in location.  They are and will continue to discover huge challenges in meeting the demands they place on living nicely.  The trick to meet that standard of living demand has become a costly challenge to the young professionals.  The professional consumer is struggling while it looks for where and how it prefers to meet the desire it has developed to live nicely, affordable, with great character.  Those consumers have discovered they cannot meet those demands without the common urban travel requirements that typically become part of their living problem instead of their solutions.  The young professionals find their options to achieve this type of living very limited in supply.  Furthermore, they want to become better users of less fossil fuels in their effort to choose where they want to meet their living demands.  They are finding these efforts very difficult to do in this real estate market.  The inventories are low.  The risk to develop the type of housing they prefer to choose is not finding its way through this recession very well.  When it is discovered they find the locations placed in the heart of extremely crammed larger cities with a lot of personal risks to enjoy.  They are finding their choices very narrow.

We will develop some living spaces that meet these needs while providing some better safety components to the way they prefer to lower their personal risks in the locations they can afford.  The timing will be very good.

As I am pondering through the templates I downloaded from the SBA and the Score websites I have discovered many other wonderful opportunities that can be highlighted in the development of this business model.  Not only does this type of residential development have a growing market opportunity it has a sensible design that will help lower the cost of future property developments.  Building costs are skyrocketing.  As fossil fuels continue to remain high, these increasing costs will only become taller to overcome.  Future property development will become an increasingly high cost to young professionals.  The limited supply of prime lands, the high cost of system developments for those new properties, and the increasing cost of materials to supply the building construction has made for a difficult set of hurdles to clear and produces a series of compromises the young professionals must adhere to in order to acquire their own style of residential living.  They find they must compromise where they want to live.  They find they must compromise how they want to live.  They find they must select a less stylish atmosphere and a less 'green' location in how their choice of residential structures are provided.  These are compromises they do not want to make.  Unfortunately, the timing of the recession coupled with the standard practices of how we develop affordable residential properties has produced a less desirable selection of affordable and fashionable residential options.  Their choices are limited.

These are great aspects to include in the marketing plan for how we decide to build our business model.  Remember, business leaders are the ones who solve the problems.  The business leaders who solve the most problems are the ones who win the most.  The trick to developing a great business plan is to find the most linked up problems to solve with one fell swoop.  Gather together a line up of problems that somehow co-exist in the marketplace and find a way to build a business model that solves how those problems are occurring.  When that is achieved, the business model has a good chance for success.

Another set of problems has been developed in recent years that will also be able to find solutions from our business model.  Rural downtown areas are looking for ways to increase foot traffic flows.  The slow demise that many rural downtown regions are experiencing has been occurring for several decades.  Larger cities have produced some very rewarding re-development programs that have been working.  The effort to re-direct people to learn how to live in downtown areas has been one of the biggest parts to contribute to that success.  It has been a very large cost to many of those cities.  Developers have turned many of the diminished valued properties into high fashion, multiple story re-constructed facilities to produce the residential inventory for those young professionals to select.  At some very high costs, and only available to markets of scale, this type of real estate development has worked.  However, it may be reaching a point of becoming an unaffordable choice.  Too many costly issues have come to play in this current economy.

The problem of creating increased potential for foot traffic in rural downtown's still exist.  Rural areas did not have the means to produce the type of high-fashioned, residential re-developments we witnessed in larger cities.  The economy of scale could not support those types of developments.  What remains in the rural downtown's is a continued need to increase foot traffic.  The problem still exists.  Nobody has solved this problem for rural downtown.  A quick Google of the subject reveals how many small downtown regions in this country have current government efforts working on finding solutions in their property codes to allow or change the permission limitations currently placed on residential living in downtown areas.  Many rural governments are working on trying to change the permission procedures in order to allow more residential living in rural downtown.  It appears as though an effort to help solve this problem is occurring.  This looks again like some very good timing for this type of business plan.  Governments seem to be trying to make it easier for this type of development to occur in these regions.  We need to give them the inventory to complete their work.  We need to help them to solve their problem.  This type of view looks good for what we will be trying to do.  We need to help them.

Another great piece of timing is how each small business owner is looking to expand their revenue sources as they come out of this recession.  The survivors of this recession made it through on of the toughest set-backs they faced in their business career.  They will come out of this recession with the idea in their mind to secure better and more diverse sources of revenue.  They will be stripped down in resources due to the tightening they had to do to manage their survival.  They will not have a lot of capital to do what they would like to do with their development of new revenues they feel they need to do.  The only thing they will still own is the building they are using to operate their business from.  Their property will become their only source for re-developing new revenue sources.  Given the right opportunities, the right permissions and the consumers of the right kind...they will be prompted to examine how they can convert their business facility into new forms of residential revenues.  This type of business expansion does not require the added risks of additional employees.  It also does not require the business owner to invest large sums of risk into increased inventories to manage what commonly comes with traditional business expansion.  Increasing revenues in this format will be met with more acceptance once this recession continues to find its way out of this period we have been managing.  Commercial property owners will find this type of development attractive.  It will help them solve some problems they experienced by having only one source of income from the properties they use to produce their business affairs.  We can help them solve that problem.

As you can see, we can build this new business model with the idea that we will be able to solve many consumer driven problems and at the same time find others in the marketplace who can use this model to help them solve their challenges as well.  This type of development is how you discover a good business plan.  The websites we visited asked these types of questions before we began the work on producing our written business plan.  Go through the questions they ask.  Allow yourself to grasp their advice and work on how they guide the business plan to success.  Your model demands success.  Take the time, develop the patience and work the questions all the way through what they suggest you to do.  It does matter in the long run how well your business will be designed and how well it will produce once it sets foot on the track.

Do the hard desk work first.  Read, study and design a good business plan to write.

Until next time...