Avoid These Classic Mistakes in

Community Development

19 CR 168
Oxford, MS 38655
www.promatura.com
800-201-1483
 Avoid These Classic Mistakes in
Community Development
ProMatura Group, LLC www.promatura.com 2009

These Mistakes Can be Avoided

Getting Started
1. Failing to learn who your prospective customers 7. Copying the competition and trying to capture
are, what they want (residence, amenities and the same target market in the same markets: the
services), how much they will pay. affluent customer.

2. Spending money buying the land, architectural 8. Assuming that there will not be competition in
design, and securing the permits to build before the market area.
you know:
a. If there is a market; 9. Assuming that if you build in an area first you
b. The number of qualified, prospective will keep the competition from building in the
customers; area.
c. If the prospective customers would move
to the community that you plan to build 10. Making the project “work financially” on paper
in the location where you plan to build (increasing prices in the pro forma so that the
it; project will cash flow) and ignoring the
d. The characteristics of the prospective economic and demographic truths in the market
customers; or place.
e. What the customers want and are willing
to pay. 11. Building one community that is successful and
assuming that the same model will be successful
3. Not obtaining a quality market feasibility study in other locations.
by an independent, objective, third party firm.
12. Creating products that do not match the what
4. Thinking that all market feasibility studies are your customers want and are willing to pay.
the same.
13. Letting the architects and land planners plan the
5. Performing the market feasibility within the community, irrespective of any information
company where the underlying, but unspoken about market conditions (demographic,
message is, “You have to make the results show economic, competitive and the size or type of
that the property is feasible.” target market). It needs to be a team approach
involving consumer and market research data
6. Insisting that “your model will work,” even obtained for your property, and the knowledge
when the market feasibility study suggests it will and expertise of operations, marketing and
be very difficult. property management experts.

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All Rights Reserved
800 201 1483
Page 3 2009

14. Falling in love with what the architects and land
planners have created, before you know there is
sufficient market demand and if anyone wants
the type of product that is being created.
Planning the Community
Positioning and Marketing the
Community
20. Using industry terms (jargon) that are not well
understood by consumers and are not defined
the same by the professionals in the industry.

15. Not understanding that the industry is a people 21. Focusing on age.
business, the best architecture will not cure bad
management, the best management will not cure 22. Ignoring the importance of the “position” or
the work of employees who do not have people stature of the community.
skills, knowledge, caring, authority to do what is
right, and accountability. 23. Showing standard, options and upgrade features
that aren’t available.
16. Focusing on the near term (5 years) for the
community and not projecting the opportunities
and risks for the property for the long-term Sales
(more than 5 years). You can sell today, but
what are the projections for reaching build out, 24. Selling features instead of lifestyle , benefits,
particularly if competition comes in. opportunities, and solutions.

17. Designing a building that does not support 25. Believing that a pretty building and the real
change over time. estate will sell the property to the prospective
a. Mediocre construction, customers.
b. Requires significant maintenance to
remain “fresh.” 26. Assuming that anybody (sales person or not) can
c. Front-loaded garages sell the community to prospective customers.

18. Location of the property is in a market that is
likely to change (for better or for worse) because
of transition of the area, population changes,
economic/industry changes.
19. Assuming customers of the same age are the
same.
27. Not understanding nor using the knowledge of
what customers want in their lives to sell the
community.
28. Thinking you know the customer.
29. Not including knowledgeable marketing and
sales professionals in planning the community.

30. Failing to provide market feasibility results, pro

forma information to the marketing and sales
team.

Copyright ProMatura Group, LLC 2009

All Rights Reserved
800 201 1483
Page 4 2009

31. Failing to recognize the importance of life and
activity in the community and failing “to stage”
the community so that the best of living in the
community is seen.
32. Not planning and arranging for prospects to
meet home owners and see their residences.
38. Not having a program of measuring
performance of the community from marketing
and sales to construction, home delivery and
lifestyle that provides usable information to
upgrade services, plan budgets and keep the
community in tune with what the customers
want.

39. Having a satisfaction survey program, but not

Customer Service using the results.
33. Not investing in developing a company -wide, 40. Not using nor maintaining a method to listen to
community-wide, top to bottom, bottom to top the voice of the customer.
customer service program that everyone
believes in and that has visible tangible evidence
that the customer service program is in place,
being used and is effective.

34. Leaving the quality of service to chance and ProMatura has been providing research
assuming that your General Manager and/or and consulting services to the 50+
Lifestyle Director will instill customer service in housing industry for 25 years.
everyone else.
Call us to discuss how our knowledge,
35. Not having a constant, vigilant program of experience and work can benefit you.
upgrading, renovating, and re-inventing the club
house, community space, amenities and
services.

36. Not creating on-going, self-sustaining, employee

to employee customer service educational
programs.

37. Not developing systems so that employees are

rewarded and can advance (through top quality
performance, education, and longevity) in
recognition and rewards, even if they continue
to do essentially the same job and stay within
the community.

Copyright ProMatura Group, LLC 2009

All Rights Reserved
800 201 1483