What's Next

What I think I would consider the next step for my venture would ultimately be expanding my service and products to general commercial development as well as residential in the form of subdivisions. The first person I talked to, the VP of Construction at a residential builder said that they believe that is the next step to take in a venture like what I have envisioned but it is a big leap to take and requires many risks. But in the short term, he advised that it would be smart to make the products and services as customer friendly as possible. Whether it is the usability of a website, an app or simply in-person service; all of these are keys to growing and maintaining a successful business. Next, I talked to a superintendent that works for a commercial GC. What he brought up was specifically pertinent to the construction side of my venture. HE explained how finding the most efficient field teams can save large amounts of money during construction by completing jobs on time and under budget; providing larger revenues for the company. Additionally, he brought up how the owner/investors of the building must be treated equally as a customer. The third interview was with a real estate agent suggesting the idea of advertising and holding touring events for upcoming real estate properties. This can be done by open house events or even through the use of virtual reality for tours of projects that aren’t completed.

After receiving this feedback, I believe that there are 2 main areas where my venture should focus. The first part of it is the marketing and advertising part. By getting the word out about new and upcoming real estate projects there can become excitement created about the project which will encourage more interest in the project.  In addition to this, hosting “open house” events with brokers and customer this can provide sales as well as showing my real estate projects to potential customers.

The second main focus area is the actual construction process itself. By streamlining this process and doing it in the most efficient manner can drastically increase revenues and decrease overhead costs on construction projects.  By completing projects sooner there will be less fixed overhead cost as well typically being accompanied by some form of bonus from the owner since they can start selling real estate sooner. Additionally, projects completed with less money than was budgeted, the money left over typically goes back into the contractor’s pocket.

A completely new market would be to create a venture in track-home building. Track-homes are essentially “cookie-cutter” houses that are in a neighborhood or subdivision is which nearly all houses look the same. These houses are built en masse and are sold very quickly for low prices, anywhere from low 100s to high 300s. I think the best way I would be able to create value would be in the construction process itself.  These houses are typically built very quickly and by implementing more efficient building practices as well as an experienced team, we would be able to be built faster than the average builder with higher quality. After my first interview, a construction manger that builds track-homes, he explained that it would be difficult, but my idea is possible. However, he advised hiring construction mangers with experience specific to the types of houses I would be building. My second interview was with an entrepreneur that invests in real estate. His advice was that there is a lot of money to be made in this venture given how quickly these types of houses are normally sold. Both interviewees said that my product/service mix was appropriate for this type of venture.

I think what surprised me the most was that my current product/service mix was already appropriate for changing to such a distinctly different market. While many of the same tactics would be used in the selling and building process, they would just be targeted to a different demographic. About half of my assumptions were correct. Originally, I think my idea was too long term. However once realizing how many things there are to be improved in the short term, it makes you realize that you can always be improving your idea.

This new market appears to be as attractive as the existing marketing that I’m targeting. It provides a large cash flow, quick construction time as well as very fast-paced business. However, given the nature of building track-homes I would not change my venture in commercial real estate to peruse one in much less valuable real estate/property. I believe that while my original idea may need tweaking and reevaluation, I think that it has a high potential of becoming successful if done correctly and with the right people.