| Property Development is a multi dimensional business | | | | developer and you are looking for financial backing |
| which can refer to renovation and re-lease of existing | | | | from an outside entity you better have a plan and |
| properties or the acquisition of properties or raw land | | | | your plan should be documented well. This should help |
| for the purpose of improvement and/or resale to | | | | demonstrate that you know what you are doing. |
| others. | | | | The process requires someone who is able to look at |
| With investment dollars getting tighter and tighter, | | | | an apparently insurmountable mass of due diligence |
| lenders, stakeholders and investors are requiring more | | | | and pull the items apart and sequence them one at a |
| proof that the investment is sound. It is becoming | | | | time into a logical progression of smaller steps or |
| increasingly important to perform good timely due | | | | milestones. It takes a conceptual thinker. It takes |
| diligence and document it well. Property investment | | | | someone who does not get stifled by the magnitude |
| deals are getting more competitive and the amount | | | | of the task at hand. It takes someone who has a |
| of money available to spend on due diligence is | | | | comprehension for the entire process including a |
| shrinking. | | | | reasonable understanding of the responsibilities of all |
| At first glance it seems like a bit of a catch 22. | | | | parties and stakeholders. It takes a conceptual |
| Actually this just means property developers are | | | | thinker. |
| going to have to be smarter about how they go | | | | New development projects need a risk management |
| about their business. Having a comprehensive yet | | | | plan. Existing property modifications need a change |
| concise report that establishes project feasibility, | | | | management plan. |
| identifies risk areas and delineates the plan for | | | | The key to effective risk management and change |
| development will be just what is needed by lenders | | | | management is to have a system that has |
| and requested by stakeholders. | | | | measurable results. Risk management or change |
| This approach may have been the exception in the | | | | management for any project can be tied into a |
| past, but it will be the standard in the future. Rest | | | | milestone schedule to assess and measure risk as it |
| assured, if you do not have a compelling case of | | | | applies to scope schedule and budget. |
| project feasibility, lenders and investors are going to | | | | Risk management is essential to success in business. |
| have a difficult time providing the financial backing. | | | | Most of us are very well equipped to manage risk |
| And you had better be able to communicate it clearly | | | | and change effectively. Our everyday activities |
| and concisely. | | | | prepare us well. You can find numerous parallels in |
| This is no different than any other business venture. | | | | everyday life. |
| You have to have the backup packaged in a way | | | | Make a plan for change management. Make a plan for |
| that it can be referenced accordingly to verify | | | | risk management. You will be glad you did. Check out |
| feasibility. | | | | my upcoming articles where I will go into more detail |
| Businesses are in a constant state of proceed at | | | | on the primary levels of risk management and |
| your own risk. | | | | provide information on how to build a risk |
| The building and construction industry has been | | | | management plan and a change management plan to |
| charting a different course for a long time. It is | | | | help you succeed in the new economy. |
| broken and needs to be fixed. Restoring the | | | | Please visit my website for more information |
| construction industry is a monumental task but one | | | | regarding risk management planning and change |
| thing is for sure. As we move forward property | | | | management planning for business. |
| developers had better get organized. If you are a | | | | |