How firms can spot opportunities, threats in real estate business

To every business, opportunities and threats come as external factors that need to be spotted quickly so as to tap or trap them, as the case may be, and ensure that the business survives and grows.

Unlike strengths and weaknesses which are internal in any firm and are usually dealt with internally, opportunities and threats need special initiatives, skills or applications to identify.

Experts link opportunities and threats in any business to its operating environment which is why they recommend that for any firms or professionals in real estate to identify these factors, they need to carry out environmental scanning.

“Business environment is like a ship and an ocean. The captain must have a clear understanding of the ocean through scanning and gathering information about the sea, How firms can identify opportunities, threats in real estate business,” explained Chidi Nnebedum, an estate surveyor and valuer.

Nnebedum, whose views were contained in a paper on ‘The Importance of Environmental Scanning to Real Estate Practice and Success,’ noted that the business environment is constantly changing, leading to changes in the future of businesses.

He explained environmental scanning as the process of gathering information about events and their relationships within an organization’s internal and external environments, adding that the purpose of the exercise is to help management determine the future direction of an organization.

Part of the benefits of environmental scanning to any business, according to Nnebedum, is its use in conducting a strength, weakness, opportunities and threat (SWOT) analysis with a view to providing the entrepreneur, who could be an estate surveyor and valuer, with a road map to the changes that may happen in future.

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He argued that environmental scanning could also be applied by a real estate professional such as an estate surveyor and valuer while carrying out his functions, adding that it allows the real estate firm to make good decisions, keeping in mind the success and growth of the business.

He added that an estate surveyor and valuer could carry out an environmental impact assessment (EIA) on a project. EIA is the process of evaluating the likely impact a proposed project or development could have on the environment.

“A careful scanning of the environment helps in tapping the useful resources required for the business, as it aids the firm to track their resources and optimally use it; it also helps to plan long-term business strategy and aids decision making,” he said.

Most businesses have both short term and long term plans and, according to Nnebedum, planning for long term objectives are achieved after proper analysis and environmental scanning.

It follows therefore that an entrepreneur can get necessary business strategy through the help of environmental planning. “It is an important component of strategic planning as it provides information on factors that will affect the organization in the future,” he noted.

Among other uses, environmental scanning educates managers on the linkage between an organization and its environment and keeps them alert and well informed. It helps firms to identify opportunities and threats before it, giving them a chance to patch any loopholes.

Nnebedum notes that every day, new estate firms emerge and for any of them to maintain a competitive edge and gain sustainable competitive advantage, it should embark on a proper and comprehensive environmental scanning.

“Any estate firm that wants to remain relevant and achieve sustainability in the business world must have a good knowledge of environmental scanning, its application and importance,” he advised.