Increased chatter about a forthcoming economic downturn has leaders in many sectors planning for the worst. Who can blame them? With increased trade war tensions, volatile pricing in global gateway markets like NYC, San Francisco and London, the removal of SALT deductions, uncertainty surrounding the coworking business model and global economists calling for a recession nearly every day, it’s easy to feel the pressure and want to take action.
But how do you prepare + protect your real estate business from such a macroeconomic force? As a developer, owner or real estate project management firm, now is the time to think about shoring up your operations.
When the markets are in your favor, it’s easier to take more risks, hire more employees and not get too caught up in budget overruns – you’re still making a decent return just by riding the wave. However, if and when market dynamics shift, you’ll need to turn on a dime to ensure you’re operating with leaner, more cost-effective strategies – meaning you’ll likely be two steps behind as you look for ways to reduce overhead and maintain your bottom line.
Instead of waiting for an unwelcome wake-up call (think: shrinking profit margins, budget overruns, vendors with tighter cash flows and less ability to wait for your team’s slow processing, etc.), why not proactively assess your operations to see where you can make changes that will support your long-term success?
For instance, incorporating modern, tech-forward practices into your operations today could be an investment that yields continuous value creation for your firm, investors, and clients down the road. Making sure your project and development teams are using the latest, most sophisticated technology and software could immediately save you time and money. By having the right tools in place, you’ll be able to run more efficient teams and maintain your level of work – if not increase it – without compromising on quality or spreading your staff too thin.
Implementing a software like Northspyre is guaranteed to help project teams run more efficiently. It was developed to significantly reduce time wasted on data entry + tedious administrative tasks and increase project returns. After analyzing more than 100 real estate project teams across the United States, we discovered that most teams are squandering 30% of their project staffing hours per year on low-value tasks. This includes: getting bogged down in spreadsheets and countless documents, trying to reconcile data, the simple act of keeping a project moving forward and much, much more.
With such chaotic processes, it’s no wonder teams are leaving money on the table due to delays, bottleneck decision-making, overpaying vendors, ballooning loan interest payments and the inability to build accurate forecasts. And that’s not even during a recession!
But there’s a path forward. By leveraging automation, data analytics and proactive intelligence, Northspyre provides teams the foundation they need to make smarter and faster decisions – all without the administrative hassle and traditional disorganization that can slow down a project and inflate a budget. Northspyre was developed by real estate professionals for real estate professionals and specifically works to:
> Empower project teams with data, so they can achieve predictable outcomes
> Position lean development teams to deliver projects on-time and on-budget, effectively saving up to 8% on overall project costs
> Leverage proactive intelligence and insights to help teams keep a strong handle on current and future project finances, even with economic headwinds
> Eliminate 30% of low-value staffing work so teams can focus on winning new clients (if a project management firm or consultancy) or more closely monitoring projects to stabilize returns (if a developer)
> Enable teams to finish projects ahead of schedule and beat oversupply from competitors who may deliver a few months too late
> Provide a competitive edge and reinforce industry expertise, impressing financial partners, management teams, clients and other key stakeholders
The benefits of implementing a tailor-made, intelligent technology today are immediate. As a bonus, if your team is already operating in a highly cost-effective and efficient manner during prime market conditions, your business will be even better positioned to withstand any future unfavorable swings.
Curious? Learn more about Northspyre today and see how it’ll quickly become your secret weapon. Start planning today to prepare yourself for a potential economic downturn tomorrow.