THE strategic challenges of small and medium-sized creative businesses share a number of similarities with the challenges in the private housing market.

Most businesses are developed with a sale in mind at some point and we do the same with our homes.

Britain is peculiar in Europe in using house purchase as a route to potential retirement fortune, and that is exactly what we do with our businesses. In both cases, we either pass the baton on to the next generation or cash out to fund the life we dream of, assuming we can.

Right now, there is a disconnection between buyers and sellers regarding valuation. Due to the market conditions and lack of debt financing, the few active buyers are expecting a bargain, yet sellers often retain a totally unrealistic expectation of price based on what they hoped the assets would bring, rather than what the market will pay – the true value of any asset. So, in each case, the markets are stalled except for distressed sales.

These major market challenges mean we must decide where to invest and what improvements to make in order to strengthen and position our businesses and houses for the inevitable upturn and financial reward.

The kind of business we build will affect its market attractiveness and future value.

So take out the plans and take another look. What you do has got to be affordable, in keeping, and desirable. Take another look at the market and the competition, and make sure you don't end up with an eccentric folly that will have no buyers.

Maintenance and managed growth is much more advisable over grand gestures and risky ventures – that new Bellagio Hotel-sized water feature you had planned for the garden really can wait.