Growing your property management business successfully involves strategic scaling. Try to adapt too quickly and you could end up back where you started, or worse. Evolve too cautiously and you could easily miss out on the opportunities that are ahead of you. So, what’s the secret? How can you scale your property management company in a way that is well-timed and profitable? Here are a few steps to help get you on the right track.
Listen to and learn from your customers
You wouldn’t be anywhere if not for your loyal client base. Who better, then, to help you shape the direction your company is going in than your customers? The first step to effective scaling should be seeking the “voice of the customer” and being open-minded enough to learn from what your clients have to say - especially if that feedback is negative. What can you learn from your existing book of business? What impact are you making on their lives? How can you more effectively make a difference?
Develop a shared vision
What is your property management company’s vision? If it’s not in line with the direction your customers are headed, then it’s time to make some changes. Many business leaders make the mistake of believing that their company’s vision is something that is set in stone. But agile organizations know that this vision should continually evolve. Create or adapt your shared vision, then track your progress against it and transparently report results (good and bad). This is the path to true scalability.
Develop a high-performance team
If you want your property management company to move forward in a positive, profitable way, you need a team behind the helm that is comprised of bright minds, creativity, a shared passion about the company’s core purpose and the right mix of skills and expertise to get the job done right. You should focus on developing a team that includes members that share common values but are also open-minded enough to consider different perspectives or new points of view. A team that combines both seasoned and newer employees will enable you to scale in a way that is quick but smart.
Achieve and maintain operational excellence
This may seem like a no brainer, but for rapidly scaling companies, it can be quite challenging. Start by clearly mapping out each step of operations, defining roles and accountabilities for each team member as well as for customers and third parties. Be sure to set clear expectations and establish appropriate metrics for each step in the process. Challenge your team to define what success looks like and how to measure and report on that success, identify the potential risks and failures that lie ahead and determine how to prevent or mitigate those issues when they occur.
Manage cash wisely
Last, but certainly not least, is the importance of smart cash flow management. Spending cash where it will make the biggest impact and build value while also conserving enough of it for the inevitable uncertainties is the key to achieving pivotal milestones in the property management market, with your customers and for your shareholders. Make sure that you have key decision makers in place who know how to make the smartest use of cash. This, along with the four steps listed above, will help position your company for successful scaling in the future.