3 minute read
Global Business Council
By: Daniel Jittu, Broker/Owner, 27 State Realty LLC; 2020 GBC Vice Chair
Istill hear the voice of Jim Williamson, my high school basketball coach, in his southern drawl, “Jittu, don’t think, react!”
He wasn’t telling me not to think, quite the contrary. Much like a chess player who reacts to an opponent’s move, I should do the same. Since I inherently know the basketball moves I need to execute, I can react to my opponent without thinking about the mechanics. Later in life, while attached to a Think Tank in Washington, D.C., I was asked, “Daniel, would you like to go to an Embassy party?” It wasn’t a simple question because the U.S. had already decided to make a major pivot away from the Embassy host country.
I did not have to “re-think” the proposition. My previous risk assessment prepared me so I could react. My preparedness changed my life for the good.
2020 GLOBAL RISK ANALYSIS
You should have started to plan or possibly completed your 2020 Global Risk Analysis. Chances are 11-25 percent of your business in 2020 may be internationally based. For me, my analysis helped me to create my own real estate company.
Last year, the world faced negative bond rates, which created a rich environment for international investors this year in the United States. I verified my opinion with a variety of experts, especially CCIM economist K.C. Conway. My pre-thought allowed me to react in creating my own Florida real estate company, 27 State Realty.
Be judicious by game playing various business models. If you don’t understand the difference between a business model and a business plan, I recommend Steve Blank’s work.
STRATEGIZE
A model plan will help with a short term strategy that might become the way you do business. Take for instance, Brexit. When the political issue came up, my strategy was not to try to time the market around it. That would be called speculation. My strategy allowed my customers to sell Stirling GBP based on an acceptable rate, rather than using a crystal ball prayer that could time the market. If you used this strategy, the cost was clear. GBC sponsor MoneyCorp, assisted us in the entire transaction.
TEST YOUR GRASP OF THE CONCEPT
Question 1: Did the overwhelming election of Boris Johnson as the U.K. Prime Minister affect the markets? Answer: Short term, yes, for a day or so, but in reality, it calmed the market fear. This vote was to stop the embarrassment the next vote will be due to his ability to execute the plan.
Question 2: Does it matter if a foreign government tries to meddle in our election? Answer: On the one hand this has been happening since the birth of our country. On the other hand, it might matter if you did not like the winner. As a Realtor®, stay professional and watch for the key elements that move markets and avoid politics.
Question 3: In December 2019, Amy Banse, Managing Director of Comcast Ventures, announced that they would put their money into Real Estate Technology.
Test your knowledge. How might this affect your business? Do the hard work now. As Coach Williamson said, “Don’t think, react!
NEW GBC MEMBERS Harold Alexander Ley, Coldwell Banker Residential Real Estate Karolina Moscicka, Keller Williams Classic Group Ronald G. Sears, EXP Realty, LLC Nadia Vizza, Florida Internet Realty LLC Daniel Withers, Coldwell Banker Residential Realty
UPCOMING CLASS: CANADIAN WORKSHOP
Join us February 20, 2020 at RASM South to get an in-depth look at our most prolific international customers: Canadians. This session will cover the following cross-border topics as they relate to our northernmost customers.
Legal, tax and estate issues FIRPTA Financing, currency exchange, banking considerations, and cultural insights Tools, resources, tips and education content to help grow your business with Canada. Find the event at myrasm.com/calendar •
