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’. 😆
An excellent evaluation of why the Spanish property market crashed three years ago, with perhaps just a little help from the collapse of Lehmans to speed up the inevitable.
The transformation in farmers from riding along on donkeys to becoming property developers racing around in shiny BMWs was just before my time, but I saw and lived through the immediate aftermath.
The Armani suits and gleaming cars couldn’t hide the calloused hands used to picking olives and how could the running of a finca compare to the responsibilities of running property developments stretching as far as the eye can see? Especially once the crooks took control.
But sanity will return and many of the crooks will be banged up. I heard the Spanish housing minister proclaim the other day that in future every house sold in Spain will have to be totally legal. I suppose he’s looking at a very long future.
I would have had lamb on Sunday, but forgot to take it out to defrost, so it was boring chicken yet again. And lamb without rosemary is like a farmer/director without a BMW.