Future-Proofing: 5 Questions to Ask in Times of Uncertainty
Joseph Wright of Derby, A Philosopher Giving A Lecture at the Orrery, c. 1765
As the old saying goes, change is the only constant in life. And even in the sometimes rather slow moving real estate industry this is still true.
Even if not that much changes day to day most real estate projects take many years from start to finish, even a decade or more. And over a long timescale small changes compound.
Today though we are in an odd space. Change IS happening fast. The way we’re all thinking about work, life and what matters has fundamentally changed from pre-Covid days. Just by looking at the discombobulation ‘hybrid’ working is causing tells us that everything is still up in the air and no-one is quite sure how things will pan out.
So, unlike normal times in real estate, we need to be constantly looking out for signals about where things are heading, and be on high alert for red flags that tell us that what once was certain, is suddenly, not.
It is a truism that change represents opportunity, but it can also kill you.
We are deep in a “Gradually, then suddenly” world.
Instinctively it’s hard to see our industry being the same in 2 or 5 years, let alone 10. The nature of demand is changing too fast for that.
How does one plan for such uncertainty and how should a forward-thinking, innovative real estate developer or operator feel their way to understand what to supply in X years time that customers will love?
I think, on a quarterly cadence, you need to answer, with your teams, the following five questions, and in each case record ‘Key Metrics or Factors to Track’, and ‘Action Items or Strategies to follow':
What emerging trends and technologies could impact our business in the next 12-18 months? Because staying informed about the latest advancements and disruptions in your (and other) industries can help you anticipate changes and seize opportunities before your competitors.
How are our customers' needs and preferences evolving, and how can we adapt to meet those changing needs? Because understanding your customers' expectations and anticipating their future demands is key to providing exceptional service and maintaining their loyalty. What ‘signals’ are out there?
What new competitors are entering the market, and how can we differentiate ourselves from them? Because keeping a close eye on new players and analysing their strengths and weaknesses can help you position your business in a unique and compelling way. And new players WILL emerge within real estate, most likely from outside the industry.
How are regulations and policies evolving, and what impact could they have on our business? Because staying compliant with changing laws and regulations is essential, but it's also important to anticipate potential regulatory changes that could impact your business operations. Look out for 2nd order impacts.
What are the potential risks and challenges we may face in the next 6-12 months, and how can we mitigate those risks? Because, from economic downturns to natural disasters, there are many external factors that could disrupt your business. Being prepared and having contingency plans in place can help you weather the storm and emerge stronger. Look out for outliers, like pandemics, or new technologies like Generative AI.
By consistently asking these questions and proactively seeking out new information and insights, you HAVE A CHANCE TO stay one step ahead of the game and ensure your business thrives in an ever-evolving market. No promises but your odds will be better than your peers who don't ....
.... Stay curious and keep pushing the boundaries of what's possible!