We’ll deviate from our usual format to better explain today’s show discussion.
George: When I was just getting started in business, I had an opportunity to buy a property that the real estate broker said would support a 12-unit apartment building.
I determined that 24 units could be built; upon checking with my architect, I found out it would support 26. So I knew the property was worth at least twice what I was paying.
But a business opportunity came along, and I decided to go for that. I sold my option on the property to my architect at cost.
Within weeks, a major building project was announced right across the street from this property. I could have made way more money in months with the real estate project than I did in years in the business!
6 essential factors you must have in place when opportunity knocks
Mary-Lynn: #1 – You have to be in the right place. Your research showed that you were in the right place, George. You knew the property was worth more than you were paying.
George: #2 – It has to be the right time. Had I done more research, I might have discovered the new project across the street. But I got nervous about losing my option money, which I needed for the business.
Mary-Lynn: #3 – Recognize that you’re in the right place at the right time.
You have to actually realize the moment you’re in so you can capitalize on it. But George, you sold because you had another opportunity?
George: I did. However, the returns came in slower than they would have with the real estate project. I can’t complain about it, though – the business opportunity helped launch my other businesses.
Mary-Lynn: Why did you sell the property at cost when you knew it was worth more?
George: I was only 22 at the time … I was inexperienced. And frankly, a little scared. I needed the money for the business opportunity. So I did what I thought was best, but I lost out on an opportunity to jump-start my net worth.
Mary-Lynn: #4 – You need knowledge of what to do. This is all about education. When your opportunity presents itself, you don’t have time to prepare.
George: I knew enough to find the opportunity; what I lacked were the specifics of what to do with the exact situation.
Mary-Lynn: So how did you to get ready for the next time?
George: I studied all of the ways you could make money with a property. I read books, listened to tapes, and talked to anybody and everybody who would talk to me.
Mary-Lynn: #5 – Know how to do what you need to do. This is about experience – knowing how you actually execute what needs to be done.
George: From this experience, I started smaller the next time. I learned how to go through the process, from beginning to end, to develop a property.
Mary-Lynn: Is it important to start out smaller?
George: Not necessarily, although I think most people start out relatively small. I wanted to make sure that I could afford to see my next project through to the end.
Mary-Lynn: #6 – You need access to the required resources. Who you know plays a part. You need to be able to raise the money required and find the right people to get the job done.
George: This was perhaps my biggest stumbling block. I became overwhelmed at all that would need to be done. I didn’t see how bigg an opportunity it was or how easy it would have been to capitalize on it.
But here’s the good news – I learned so much that made me so much because I missed out on this deal!
|Have you ever missed an opportunity? What lessons did you learn? Share them with us! Leave a Comment below.|
Our bigg quote today comes from Abraham Lincoln.
Do your homework now so when opportunity knocks, you can answer.
Next time, we’ll discuss communicating effectively across department lines. Until then, here’s to your bigg success!