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Could This Growth Strategy Be Your Ace in the Hole?

By Mitchell Vinnitsky

Could This Growth Strategy Be Your Ace in the HoleMost business owners don’t start their own company to stay small. Assuming that you’re not among the minority, chances are growth is one of your top objectives. And there are certainly plenty of ways to achieve that goal. One thing that you may not be considering, however, is that the growth you’re seeking may be more easily achieved through acquisition. Better yet, this strategy can be adapted to businesses of any size, so even if you run a relatively small operation, acquiring another property management company is entirely doable, provided you want to do one of the following.

You want to gain greater market share.

The most straightforward reason for considering an acquisition is to get rid of your competition. A distinct advantage to this strategy is that when you purchase another property management company, you’ll already know the industry. This can make taking over operations much easier and smoother. You may wish to absorb their business into yours, or you might choose to expand your existing operation by taking over their segment of the market.  

You want to enter a new market.

Another affective way to achieve growth through acquisition is by expanding your current operation into another market, such as a different location or a new segment or niche. The key to success here is choosing a property management brand that is already recognized, as this can really help to fast-track your competitive advantage. Look for acquisitions that, if consolidated with your current operation, could catapult you into a higher position on the competitive landscape as quickly as possible.

You want to diversify.

Perhaps you’re interested in delving beyond the property management industry into another sector or niche altogether. (Amazon’s recent acquisition of Whole Foods is a great example of this.) The secret to being successful with this strategy is finding related or complementary businesses that offer something you don’t currently have. This will make your property management company even more successful over the long haul and give you the security of having a more diversified portfolio.

Whatever your property management company’s size, market position or age, a well-planned-out acquisition has the potential to produce a much higher return than any marketing campaign ever could. And, if strategized properly, this type of growth can be far more sustainable.

Tagged Property Management, Engagement, Business Growth

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