However, if all entrepreneurs strictly applied a safety-only approach, Sir Richard Branson would still be flogging records from a market stall and Sir Philip Green would be living in Wood Green rather than Monaco.
No successful entrepreneur applies a safety-only approach. What they are brilliant at, and separates the men from the boys, is keeping an eye on the (ever-changing) market, adapting what they have to offer accordingly and forever seeing that niche/demand that no-one else has hammered to death.
Developers in Spain got lazy in their vision. They thought the theme of pumping out luxury apartments attached to their own golf-course would run and run, as with the cheap townhouse-estate-for-the-masses. They were still making them like a rabid dog well into the sunset of the property boom. The lure of virtually free money via off-plan deposits financing the whole shebang just adding fuel to the fire – and their frenzy.
One developer I know got so ahead of himself, he set up one off-plan project – pulled in deposits – and used that money to finance the build of a second development, the thinking being that when they sell, he can build the original one. Why build one when, while you’re at it, you can build two?! It was like one long acid party for some of these ex-farmer ‘directors’.
Denial is lethal in business. Financial crisis or not, they simply had their eyes wide-shut regards to diminishing demand and a saturated market.
Ah the ramblings of a mere woman. Now where did I put m’apples – am making a nice apple pie for Sunday lunch ‘afters’. 😆