Is Your Real Estate Business Scalable & Saleable?

real estate investing Mar 14, 2021
 Estate Business Scalable & Saleable

 "Billion Dollar Companies Don't Need Their Founders"

 

Have you ever felt like the bottleneck in your real estate business?
Does it feel like nothing happens when you’re not around? You’re not alone.
Most would agree that there aren’t enough hours in the day or that the only way to make sure something is done right is to do it yourself. The passion and energy you initially had when you first started out begins to fade as you wear 7 hats to keep your business going.
 
There’s so much to do and it feels like it all needs to happen at once. You do the best you can and tell yourself that next month it’ll be different, and you carry on.
 
30 days pass and you’re busier than ever, you haven’t made any real changes and continue to face the same issues.
Another month goes by, then a few years, until eventually you decide to retire or do something else.
 
You decide to sell the business and the harsh reality hits… you are the business.
 
There was an article posted not too long ago titled What a Study of 14,000 Businesses Reveals About How You Should Spend Your Timewhich concluded that founders of companies that kept their distance from customers actually sold their companies for 50%+ more than owners who knew all their customers.
Now this information shouldn’t be considered in a vacuum but a question worth pondering is what did those business owners (and others like them) do differently to be able to step back from the “front lines” of their businesses?
 
 
SMALL / BOUTIQUE
  • Can be built small by design. If done right the Owner/Operator can be happy as a clam to have the freedom to come and go as they please.
However more often than not… 
  • Owner/Operator is the bottleneck as all decision-making authority remains within his/her discretion.
  • Much more emotion driven decision making as Owner/Operator is personally involved in customer interactions.
  • Owner/Operator needs to know everything about everything.

Since the Owner/Operator is on the front lines decision making is often short term as it’s difficult to step back and take stock of the bigger picture.

 

SCALABLE & SALEABLE

  • Built by design by an entrepreneur looking at the business, industry trends and future prospects several years out.
  • #’s driven business model focused on increasing revenues, reducing ongoing operating expenses and driving more $$$ to the bottom line. Experts are retained or hired depending on need and resources.
  • Systems and process driven approach to reduce risks and vulnerabilities the business is inherently exposed to.
  • Big picture approach with short, mid and long-term forecasting for growth prospects, revenues and expenditures.

For many of you it’s initially difficult to take such a sterilized approach to your business. Regardless of your goals, it takes tremendous courage, passion, grit and drive to get an idea off the whiteboard and into the real world.

If however, you’re ambitious enough to build something scalable & saleable you’ll need to be humble enough to surround yourself with people smarter than you and continue to come back to that whiteboard.

 

To Your Success,

 
Marcin Drozdz
 

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The information contained herein is for general guidance on matters of interest only. This information contained herein are not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. www.marcindrozdz.com is not a financial or tax adviser. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. www.marcindrozdz.com, its subsidiaries and affiliates, are not responsible in any manner for direct, indirect, special or consequential damages however caused arising from your use of the information contained herein.

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