Tag Archives: strategic planning

How To Identify The Ultra-Important Project Approach

Wait! Audacious and Suicidal…Kinda Weird You Forgot or Did You Miss Something?

In today’s blog post, I break down the 10 steps you need to take to get clarity.

Remember, if you want maximum results from any of your property development projects, you’ll need to know the desired end results that’s associated with Project Approach.

If you want to keep risks and complaints down and performance up, it’s always best that you focus on the Project Approach. Why?

Because this allows you to strengthen and test performance of different phases before it becomes part of any process and sequence. After all, what’s the point if it isn’t working?

The big difference is you’re focusing on speed and implementation of end result.

So the following sections describes types of information required in Project Approach.

Project approach involves outsourcers, contractors or vendors
Project approach involves outsourcers, contractors or vendors

Ok, so are you starting to see the power and how it functions as a complete project.

Enough pie-in-the-sky mumbo-jumbo…so let’s talk about how you actually DO IT, keep reading and you’ll be glad you did.

Basically, there are four distinct and logical stages of projects:

Project and Strategic Planning – provides a business with direction on achieving its mission and vision statements within set period of time by setting milestones and specific goals.

Strategic planning differs from a typical plan because planning takes the external environment into consideration.

Depending on the business’s needs…

The strategic planning for a project includes details about necessary organizational design changes for the project.

This includes performance goals, needed resources and required outcomes.

Outcome – Clearly defined project…

Project Feasibility – studies aim to objectively and rationally define the strengths and weaknesses of proposed project, opportunities and threats as presented by environment.

Also resources required to carry through, ultimately the prospects for success.

In its simplest, two criterias are used to judge feasibility, which are costs required and the values and benefits to be attained.

A well-designed feasibility study should provide a historical background of project:

  • Description of project
  • Accounting statements
  • Details of developer’s functional
  • Requirements of project
  • Management and policies
  • Marketing research
  • Financial data
  • Legal requirements…

Outcome – Project substantiation with a clearly developed strategy to deliver client and stakeholder objectives.

Project Procurement – once the project has been progressed beyond the feasibility stage then next important stage of project is procurement stage.

This process involves developing design of project and delivering project to tender stage and award of contract.

Outcome – Project ready for tender to meet client’s requirements and subsequent transaction of contract, which involves delivering project to final handover.

During this phase of the project you want assurance of key risks are being managed and desired benefits are realised.

Project Delivery – once the project has been progressed beyond procurement stage then next important stage is project delivery.

This involves developing design of project and delivering project to tender stage and award of contract.

Outcome – Project ready for tender that meets the client’s requirements and subsequent transaction of contract.

The benefit of Project Approach allows Project Manager, Design Manager and project team to lay out a high-level vision for project execution and use this vision to help create detailed plans.

project management
Project management in various stages for effective development methodology

In the Project Approach section, I’ll tie everything together for your project management benefit:

1. Discuss whether any broader company initiatives or strategies impact the structure of this project.

2. Identify any constraints or time-boxes in terms of budget, effort, time or quality, and the impact to project.

3. Describe other options for overall approach and why you chose options you did over others.

Note why you think this approach has the best chance of success over the others.

4. Talk about how the deliverables will be supported and maintained after the project ends.

Also indicate whether the approach was influenced by support and maintenance implications.

5. Discuss any other related projects that are completed, in progress or pending that influenced the approach for this project and why.

6. Discuss, at a high level, how project progresses from start to end and interdependencies between high-level phases and stages.

7. Discuss any techniques that might be of interest

8. Note whether new technology or new processes are being utilized and why.

9. Identify any unusual staffing requirements, if using consultants or outside specialists and explain why you need them.

10. Describe use of outsourcers, contractors or vendors, especially if they are doing significant work.

Remember, the Project Approach is the linchpin that holds the entire process together.

If you can get this right, you’ll make more money, experience less stress and build tremendous good will amongst stakeholders.

Not only will this process get you specific goals provided by Project Approach, but also gives you the momentum you desperately need to achieve your desired end result.

The big takeaway is by asking these types of questions FIRST hand because this just flat out works…

P.S. There was so much I wanted to cover on this topic that it wouldn’t all fit in one post, so I’m breaking it up into three posts.

Don’t worry… you won’t have to wait a week or more for Part 2 and Part 3.

I’m putting the finishing touches on Part 2 now, and I’ll email you tomorrow and let you know when it’s published.

Project Approach

Why Your Property Investment Business Needs Strategic Management?

Property investment business…are you entrepreneurial?

Property investing is a business, would it make sense to be in a strategic position and develop a business plan before you even consider making any property investment? So the next question is  how does running a property investment business work?

property investment business
How does running your own property investment business work…

Whether you own one property or a hundred, a property investment business with plan helps manage risks and rewards of your investments. If you’re structure your investment plans as well thought out, especially when demand for mortgages is higher than supply…

You’ll be in a stronger position and more likely to secure the finance you need. A property investment business with plan means you can effectively leverage lenders, brokers,
property consultants, letting agents, financial advisors and property tax consultants.

Do you have a keen eye for property opportunities? Want to unlock and unshackle the chains to your financial freedom? Well, background analysis of your purchases must be concise and accurate. Here’s one reason why?

Because the level of gambling or rolling the dice which most people approach property investments these days, you want a reliably proven system, which takes all guess-work and worry out of finding, buying and building your investment properties.

As a property investor and developer you’ll buy land, finance property deals and build (or employ builders for) projects. You get to create, control  and organise  all processes of property investments and property development from beginning to end…

As a property investor professional you’ll work with many stakeholders including:

  • Financial institutes
  • Architects
  • City planners
  • Engineers
  • Surveyors
  • Inspectors
  • Contractors
  • Sub-contractors
  • Real esate agents
  • Property managers and more…

Before we move forward, what do you feel is holding you back from reaching your financial goals? Are you unable to connect the dots between buying properties and managing your wealth?

Let’s start by answering some questions in context to putting a property investment business plan of action together, because most property investors are facing brand-new problems, which are holding them back from genuine wealth.

property investment business plan
Take a closer look at your property investment business plan…

Management of your property business comes back to a process. In fact, if you’re at the very beginning of your journey, you have the advantage…

Why is now the time to understand the crucial importance of creating and implementing systems, which helps you take 1 step back and 3 steps forward? Because you want to leverage the ownership of your business instead of being slave to your property portfolio.

This is especially true in your property investment business:

  •  NO overwhelm
  • NO extra stress

Property investments for sustainable, financial independence and long term security. Ultimately its the reason why most of us are property investors, right?

You don’t want to go into the property business to replace your existing job with another full time job as employee  working 60 hours a week in your business because that’s what you’re passionate about.

You’re doing property as a business because you want to enjoy more of the lifestyle
that property investments can provide you. It is a means to an end.

What if you take a ‘wait and see’ attitude with property investing? Ideally, you’d know your plan of action in context to your own financial status, whether you’re buying property, developing, renovating a property or borrowing more money to put towards a deposit.

Everything you do in your property business should be documented. The name of the game is to management, right? You want to systemise your property business and every process you do is documented.

Here’s the reason why? Because it means you could take a 4 week holiday (insert exotic location) and just about anyone could run your property business with simple instructions while you relax and enjoy the sunshine…

property investments now
How your property investments allows you to sip Pina Coladas and smoke Havana cigars…

Of course, if all of the information and processes remained locked in your head, what would happen if you decided you wanted to take a break and enjoy a 2 week holiday?

Well, it would mean your business would be on hold for 2 weeks. You obviously don’t want to feel guilty or emotionally attached every time you want to take a well deserved break.

That’s why a property business structure which is completely and utterly dependent on you is like a ball and chain. The point is you want to break free by positioning yourself
so your property business works without you being there.

The other massive reason why you want to systemise is your property business is because it becomes far more attraction in terms of being saleable, viable and more valuable asset.

Here are some highly effective ways to ideally model your own property portfolio and lifestyle, so it doesn’t become another full time job.

As a property investor you want to get to a point where you work minimal hours, so this is where you plan and structure a complete hands-free or fully leveraged system:

  • Scripts
  • Leverage
  • Automation
  • People
  • Procedures
  • Efficiency
  • Decisions

What amount of income-producing assets do you want in order to create the cash flow and income you want when you decide to “retire”?

An property income-producing asset is structured to generate money for you via:

  • Rent (buy and hold)
  • Renovations
  • Subdivisions
  • Developments

It’s not your home you live because you won’t get income. To figure out what you need here’s an easy calculation to use; income you want (per year) x 20 = assets you need to own which produce income or cash flow

20 is used because 20 divides into 100 five times, which means it’s equivalent to a 5% yield, income or interest. This is only a guideline to give you an idea of what you want to aim for.

Take a look at the example below if you want a $50,000 income per year:

  • $50,000     –  $1,000,000 income producing assets
  • $100,000   –    $2,000,000 income producing assets
  • $25,000     –     $500,000 income producing assets

You want to start documenting all processes (steps and tasks) from day one and expand as an ongoing process, starting small, keeping it simple, fine tuning and optimising later…

That way in say 3 to 5 years, as you’ve accumulated 10 or 20 properties in your portfolio, your life is so much easier and you’ll free to focus on other passions and be glad you did it.

The upside is you’ll find you’re able to make much more cash doing it this way, even whilst sunbathing on the beach. It probably sounds like a fantasy, however the basic steps are divided into 3 areas:

  1. Research
  2. Investments
  3. Management

Every successful property investor we know goes through this transition. It’s often painful because we all have a fear of letting go and trying to handover work you’ve always done,
and not being happy at the results others produce, (maybe you can relate to this)…

Most of the emotional energy is spent feeling frustrating in between two places. It’s a no man’s land and ultimately you end up taking the work back yourself, because no one can do it as well as you.

In fact, this is a massive and costly mistake, its a bottleneck to slowing down your wealth creation strategy.

Have you ever wondered why Bill Gates or Rupert Murdoch can make multi-billions? Do they have more hours in a day than you?

They have grown to the point where they employ 50,000 employees, and they are getting up to 50,000 times more bang for the buck, more work rate per hour than most people.

If these multi-billionaires reluctantly tried to do it all bursting at the seams (before hiring or outsourcing) they’d be struggling doing everything and would still be a one man band overworked and underpaid.

Before you’re even ready to begin agonising, I’d suggest you start organising. You want to leverage every skill and resource available to you.

This is what leverage is all about. In other words, tapping into other people, money, skills and experience. Anything you can do to achieve more with less makes you richer.

You want to plan ahead. This isn’t about convincing as the concept is very tough to grasp; because it’s not your fault if you’re working harder…you don’t understand the right plan…

Look, if you want to take your property business to a high level of success, you want to understand how to play a much smarter game.

This is where you begin to outsource whatever you can pay for to save yourself time. This is a smarter and better model, because focusing on saving a few bucks here and there is playing a small game (fastest way to get poor.)

Your property investment mentor can be a huge source of support and leverage, saving you $10,000’s to $100,000’s in costly mistakes and a steep learning curve.

Typically you’re saving yourself 1,000’s of hours in wasted time trying to learn from scratch or re-inventing the wheel. If it feels painful, you know and understand why you want to do it now, so pay close attention to resistance.

The concept of outsourcing more, sooner rather than later becomes ego embedded as you see your wealth accumulate faster.

Why not get used other people doing projects and tasks for you? Why play small trying to manage properties yourself? The emotional and wealth creation opportunity cost is huge.

These days its so easy to get someone doing all your administration, pay for cleaning, dry cleaning, meals out, drivers; anything which you can free up head space for thinking and buy back time to utilize to make more money…faster.

The richer you get, the more money you’ll invest into buying back and freeing up your time. You might feel the urge to kick and scream. So far, so good!

As a property investor you’ll want to leverage systems to grow your property portfolio and make more money, right?

property investment business model
An in depth look at process map showing how your business systems and model can be set-up…

Its inevitable at some point…you’ll hit a wall because of various internal and external factors “the wall” is totally unavoidable if you want to be rich. You’ll hit it whether you like it or not.

Often you’ll smack face first into it, and sometimes you’ll run full force to completely crash into it. Other times you need to climb over it.

No matter how high, sometimes it takes years thinking about how much it hurts when you last had to confront the wall. This wall is both psychological and physical (two sides).

On one side of the wall is a life of quiet desperation, living to demands of others and without choice or control, no sense of freedom, meaning or personal achievement.

The other side of the wall is the greener pastures you want to graze on (freedom, choice, money, and enjoying rewards). This wall is leverage.

It’s your ability to get more done in less time by leveraging other people’s time and skills in more ways and places. Its you replicating better yourself, you’re bigger, stronger, better, faster, more effective…

Perhaps as you’re reviewing your successes and failures, over time you’ll clearly be able to take a good look back with gratitude at what you’ve created in your life by understanding the rules of leverage and getting over the wall of fear, doom or desperation.

If you laser focused on your goals and mixed a few elements of passion for good measure, do you feel it would be well worth the effort:

  • Leverage and outsource
  • Leverage projects not tasks
  • Delegate and manage
  • Define projects and roles
  1. Every property portfolio starts with small, steady calculated risks. You can always reverse your decision because you can’t buy time back, right?
  2. Most people just hand out tasks, you want to leverage entire projects and create ownership, passion and importance from the outsourcee
  3. Keep it simple with clear communication. Clear and concise instructions, provide all the info and resources required. Always get confirmed feedback, never assume
  4. If you allow people to define projects and roles because of selfish motivation, if someone feels they’ve created a plan, project or task, they own and deliver better results.

The psychological wall is often imaginary, its the barrier between your and your mind pretending too be busy. You only fool yourself if you don’t leverage:

  • No micro-managing
  • Get constant feedback
  • Be supportive
  • Hold team accountable
  • Lead by example
  • Hire on attitude or experience
  • Use what you’ve learned
  • Manage strategically not emotionally
  • Keep team fresh
  1. Give clear instructions then allow them to get on with it because professionals do it better. When mistakes are made, correct immediately or errors continue to happen.
  2. Give constant feedback and praise good work publicly, don’t point out improvements
  3. Whatever your style, you want to be consistent because inconsistency creates fear.
  4. Consistent in your behaviour, every now and again, surprise, shake it up a little to stop going stale so be there to help people get through their own glass ceilings.
  5. Set the highest standard. If you expect the best results you’ll attract the best. If they can’t live up to your high standards, one day they’ll thank you for being demanding.
  6. Actions speaks much louder than words so you’ll show, inspire and lead by example.
  7. Water and oil don’t mix. If you hire experienced staff you’ll get to learn from them, but if you hire on attitude, you’ll get results based on how good you train them
  8. How you feel doesn’t enter into the equation. Reactive management leads to poor decisions, regret and a lack of control. Praise even when you don’t feel like it
  9. Get rid of bad apples quickly because if they’re not producing results, giving people too many chances costs you more money. Be fair and consistent and only retain key contributors in your team.

Want to get the strategic skills and deeper knowledge you’ll need to excel in property investments:

  1. Develop sophisticated approach to property investment, market research and analysis
  2. Take decisive action with confidence on your increasingly complex theoretical knowledge
  3. Learn specialist technical skills in property investment and decision making
  4. Benefit by learning alongside experienced property investment mentor with diverse property projects

Property Investment Business