Happy New Year.

The dust hasn’t yet settled from the residential real estate correction and we have begun to discuss a similar correction in global commercial real estate markets.  Already we are being sold by numerous outlets on the business potential of “green” products, alternative energy and sustainable construction being the “Next Big Thing”. 

We all want a differentiator for our businesses.  We all want to have that one special thing about our companies that helps us to market and define our niche or specific position in the marketplace. It may be tempting to jump on the the bandwagon and market ourselves as green constructors.  But there is a proven folly in chasing bubbles.  When they finally slow down enough for you to catch up with them, they pop – and leave us with nothing.  My careful market research has uncovered that anything that grows beyond what fundamentals say they should or becomes the next big thing before it is proven as viable eventually deflates.

I am not preaching that we stop pursuing education in sustainable practices, LEED accreditation or building science.  I firmly believe it is best to build energy efficient structures and reduce the amount of waste, energy and materials that goes into each one.  This practice is called stewardship and should be another differentiator for our organizations.  What I am suggesting is that a better understanding of building technologies and practices should be a part of our overall strategy for our companies, and not the main focus of our efforts.  Being certified green by an agency may gain you a customer lead or two.  But instilling sound business, marketing and trade fundamentals into your organizations, along with keeping abreast of and becoming expert in bleeding edge technologies will be the method of differentiation that we all seek.  Believe it or not, a company built on excellent business principles and sound management is in a very unique position that should be a huge part of your marketing plan.  Especially in our current market.  The marginal operators are ripe to be sent packing to different pastures.  There is one thing I have learned through the years and that is that recessions correct inefficiencies and weed out poor performers who make poor choices.  Unfortunately, this deep recession has removed even decent companies from the marketplace.  But those that have survived thus far should realize that sound business processes are the reason that these organizations are still around.  Not luck, not timing, not an expense account from Aunt Mildred (although these things are nice).  Don’t be afraid to market your permanence and position in the marketplace. Being on top of new technologies is a no-brainer.

So go ahead and chase new opportunities all you want.  It is incredibly important to be diverse and seek new avenues of growth. Your organization may make some money in the process.  But don’t ever forget to follow sound fundamentals and never, ever, never betray your core business.  Watch your debt load, be mindful of overhead and discretionary spending, don’t ignore staff training, define your market niche and keep abreast of new technologies.  These items have helped to define successful companies for generations and will define them for generations to come.  Chasing bubbles never has and never will.  Market corrections make certain of that.