When we went into the first lockdown and everybody feared for their businesses, the first thing I said to our Property Entrepreneurs was don’t worry about what we’re heading into, this is a social and health consideration not a commercial or economic one.
My suggestion to them was that there was no need to shift gears, no need to start to bail their boats out with their own bucket i.e. to use their own money to bail their company out as this was a position that we had no control over or responsibility for.
I highlighted that financial support would arrive and it would be this debt or grant we would use to maintain our businesses. It arrived in the form of government grants, government loans, furlough, bounceback and CBILS.
Similarly, when we’re investing in developments and buying businesses, it’s really important to have the understanding and the acknowledgement that we don’t have to use our own money to build our businesses. If they are fundamentally and commercially sound, capital is available to fund investments, to buy businesses, and to complete and deliver developments.
Due to Covid, we had over £600,000 worth of investment pulled within two weeks of starting a seven figure development site. My only option in this scenario was to fund the development with my own money, which running at tens of thousands of pounds a week, put me in a highly pressured position.
I’ve worked very hard over the years to build my Financial Fortress™️ and ensure I have enough resources to give me comfort and security. In this scenario I found myself under pressure and using my own funds. It was not an enjoyable experience.
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