In order tobegin a prosperous startup real estate business, or any other, it is vital thatthe company takes into account the importance of having a well thought anddetail oriented strategic plan.
Thus, this paper will elaborate further on thesix strategic elements involved with any business oriented actionable plan. A critical foundation to a startupof a business would of course be its mission and vision statements. These twoideas are essential to creating what the business represents and the objectivesof the company, as well as how they intend to carry out these actions. Todetail further, the mission will be an important task for the employees togenerate together. This aids to create a sense of mental likeness between themanagement and the staff, to work together and to generate new and innovativeideas to further accomplish that goal. The vision statement, though similar tothe mission statement, would vary a bit on its own, meaning that the visionwould consist of what the company sees itself in the future. For example, inten years, what they have hoped to have done or accomplish. In essence, avision statement is what the company intends to be, and their futureaspirations, while the mission statement would be a helpful outline, furtherdetailing how the business intends to meet those goals.
The next element I will address isthe plan to produce an environmental scan analysis. This is also a criticalstrategy for the company, to assess the area that it is in, and to betterfamiliarize themselves with the laws, regulations, or demographic factors ofthe location they may be in. It is also vital for the company to gauge thecompetition, in order to have a better idea what potential opportunities may beavailable, as well as potential dangers or disadvantages that may be present inthe said environment. In principle, the environmental scan will have a stronginfluence on the company and the products or services that they produce tobetter market them to a specific client base. To further explain, theenvironmental scan would include the following, social aspects, economicbackgrounds, technology, the competition, and regulatory principles thebusiness must comply with. For the social principles, a business will beinterested in the diversity as well as the population of their clientele, asthis offers good insight to better generate products to a client base ofdifferent ages, genders or other factors.
Another aspect to consider is theeconomic differences or fluctuations in the environment in which the company isbased, they must take into account how the population surrounding them managesincome, especially with the growth of retirees, and where the younger populaceintends to work, as the economic tides shift, and white-collard employees arerelocating to offshore locations. The third principle taken into account is therise of technology, and its increased usage, as well as the rise of opensoftware and free access to these resources. The innovative progression oftechnology is also intertwined with global advancement regarding treatments andmedications for diseases, and the rise in biotechnology. These are vitalfeatures that must be considered when marketing new products and properlymerging them with the upcoming technological developments. While it isimportant to be aware and properly informed about the soar of new features, a businessor company must not forget potential competition, and the opportunities thatare made available or the disadvantages that may be present due to that. Thecompetition involved in business, selling products, offering services orgenerating new innovative ideas, does not lie within a set geographic boarder,as the opposition is global, for example, China with its rise in economics andits broach reach in manufacturing. These are all features to consider, however,the great strength of a particular business, is of course its employees, as itis vital for the management to increase focus on empowering workers to improve performance,as the staff would be a core reason the business would succeed or fail.
Thelast piece to address regarding the formation of an environmental scan, wouldbe regulatory. This would ensue matters regarding legislation, againintertwining with technology, and the laws that support or restrict theinternet, as well as its rules regarding copyrighting and intellectual property.This has naturally resulted in the general populace being more concerned withdigital privacy and personal information that may be collected with the said business.To sum up, as addressed above, an environmental scan is critical for a companyto evaluate with a higher level of understanding, the general needs or concernsof its client base, the laws it must abide to, as well as how it must maintaincapital in such a competitive world. As previously mentioned, to astartup business, competition is inevitable, nonetheless a concerning matter.
Therefore, one must be aware of the need to conduct a competitive advantageanalysis, which to clarify, would entail the business finding solutions to betterdominate the market. This includes having the ability to generate betterproducts or services at a lower cost, or in a more desirable fashion, thiswould be better described as a comparative advantage or a cost advantage, wherea customer would find the products or services more appealing due to its lowercost, yet maintaining a high standard. More aspects to cover regarding acompetitive advantage, would be a firm’s brand equity, its quality,distribution network, as well as its customer service.
For example, if a business’scustomer service is superior to another’s, this would be seen as more appealingby clientele, regardless of the same costs-this- to be more detailed would be adifferential advantage. In essence, a company will focus heavily on sustaining eithera cost advantage, or a differential advantage, in order to make this advantagedifficult for competitors to neutralize. This can be done with strategies suchas on-site observations where a business can see what their competitor mayoffer, for example the level of customer service offered to clients, or amountsof produce they may be delivering.
Another method that can be offer a lot ofinsight, would be surveys or interviews to better probe deeper into customer satisfaction,as well as the products the other firm may be offering. However, for a morespecific viewpoint, a firm can use focus groups to have a more detailedperspective from a smaller sample of people.