You don’t need decades of experience to realize our general economy is cratering, unemployment is at depression levels and pandemonium reigns in the street. Social injustice, political upheaval like never seen before, higher education opening and closing within weeks and an uncontrollable pandemic growing exponentially daily is our new norm (for now). Unemployed parents can’t afford to feed their kids without school and schools can’t open without the threat of kids taking the disease home to mon & dad.
In the interim, what do we do? Stick our heads in the sand and wish for the best? Do nothing and passively wait for the inevitable? Listen to the talking heads making idle promises about near-term solutions, last quarter surges or the pandemic “just going away”. Furthermore, the eviction of renters and landlords forced to close properties has become a new norm. Whether its dwindling airline stocks or restaurants and retailers filing bankruptcy (1,000+), no one knows when it will all end. The only ray of hope and light is the possibility of a vaccine that might bring back the normalcy again.
It is true – short-term solutions are no longer viable nor idle promises from the talking heads that lead to nowhere. However, businesses, entrepreneurs, and individuals don’t have to succumb to pessimism. A practical action would always be better than wishful fulfillment. However, it is high time to realize that the narrative pandemic is “just going away.” is a mere figment of the imagination.
Realistically, all the financial markets suggest that businesses and entrepreneurs will have to adapt throughout the course of the pandemic. The vast majority of the Americans may have preconceived naïve expectations about the end of the pandemic. And that’s fine. However, you lose the right to envy the next Jeff Bezos, Elon Musk, Mark Zuckerberg, or Dara Khosrowshahi.
Capitalism, after all, is all about the evaluation and execution of opportunities. And the most renowned and reputable billionaires understood the need to fill a demand despite tumultuous market conditions. Whether it’s the revolution of electric cars, the new age of smartphones, book sales, or taxi cabs, these incredible minds managed to utilize every element to gain significant market attraction.
Billionaires are exceptions because they know how to take advantage of an opportunity at the right place and right time. It takes a certain degree of passion, grit, courage, nerve, and Chutzpah to navigate the complexities of the market. Ordinarily, no one should take individual attributes lightly, but once you combine these shared skills, you have the power to change the world. In fact, it’s magic to solve a problem that might have been invisible or non-existent beforehand.
For instance, take a look at the most recent shining example of FATS brands. It reached a point of realization and success to buy an acclaim chain as Johnny Rockets at $25 million. Just like the rest of the restaurant industry, the FATS brand was struggling in the wake of coronavirus pandemic. However, it managed to turn the tables by buying one of the most recognizable burger brands of the country.
From a declining trend, the stocks of the FATS brand doubled after the merger. But what does it say about the FATS burger? The need of the hour dictates to adapt to new market parameters. Milkshakes and decadent burgers may have worked a decade ago, but millennials and Gen Z tastes are different that always want something different.
It all comes down to how you choose to think outside the box. So, sit back and get ready for the discounts that are coming your way. Ideally, you should spend hours, days, or even weeks on finding new opportunities that others haven’t. In fact, the bigger the obstacle, the greater the opportunity. For instance, the current ¾ vacant regional mall would make a great mixed-use asset. Who in their right mind would take a run at a failing Mall REIT realizing a mass-exodus from REI, J.C. Penney, Pier 1, Rite Aid, J. Crew and the list goes on. Only the wanna-be-Billionaire.
Combine affordable urban housing, applicable retail, incorporate minimal small WeWork office concept, a small entertainment component, unique self-storage or other tenant destinations and voila, you can revamp an urban blight into a millennial haven in an affordable range. All for the cost of the dirt. Think and imagine.
Your next course of action should be to opt for more capital. The last thing you need is the overdependence on traditional methods. Therefore, avoid unrealistic guarantees or LTV’s to capture the attention of the lenders. HNW individuals, for instance, understand the significance of passive income and spread their risk over value-added deals.
Next, solve for the capital. Traditional methods are past tense. No lender will touch this type of deal without ridiculous LTV’s or guarantees. But, given the right opportunity and capital stack, there is plenty of opportunistic capital sitting on the side lines waiting to jump in. Private equity, HNW individuals, Family Offices, etc. will stick their toe in the water for a taste but will not take the steering wheel. They’re passive by nature and want to spread their risk over myriad of value-add deals.
You should find a software platform that can help you coordinate your entire capital syndication process. Your underlying goal should be to focus on marketing your Opportunity Fund. You don’t have to dwell on extraneous matters such as compliance issues, PPM development, accreditation, document disbursement, payment processing, or operating & subscription agreements when it comes to your syndication platform.
Instead, spend your valuable time and energy to collaborate with a digital marketing group that possesses expertise in SEO, PPC, Blogging, video content strategy, social media strategy, AI, execution of email marketing campaigns. There is no secret magic pill; it just takes imagination, willingness, creative ingenuity, and hard work to achieve your dreams.
In conclusion, be smart, hire smart people. Think outside the box and find reliable software to use to your advantage in this digital world. Outsource and automate as much as you can.