The goal of growth is something most organizations strive for, and there is certainly no shortage of opportunity in the property management field. The problem is, without a strong and well-defined growth strategy, many of these opportunities are likely to pass you by. In fact, the success rate of most growth objectives is only somewhere around 20%. If you’re in the process of developing or honing your approach for achieving sustainable growth for your business, here are three proven methodologies that could help you overcome the odds and achieve your objectives.
Growth via Core Business
One of the most common ways an organization can achieve sustainable growth is by leveraging the specific services, target customers, sales and marketing channels and geographical areas that comprise the core business. By identifying which key business components have the greatest potential to generate the highest profit, your organization can pinpoint areas of opportunity for additional viable growth and expansion.
To begin, business leaders must ask and answer a number of critical questions, including:
- What is our company’s unique value proposition and key market differentiator?
- Who are our ideal customers (and who should we NOT be targeting)?
- Which direction is our property management service headed (is there opportunity to focus or capitalize on a particular niche)?
- Is our core business in any danger or under any particular threat?
- Are there additional growth opportunities we have not yet explored that are in line with our core business initiatives?
This in-depth assessment can facilitate insightful conversations and a renewed commitment to ongoing operational success within the core business. It can also help to identify areas of need as well as additional revenue streams that might be available.
Make the time necessary to plan for an extraordinary future with The Property Manager's Guide to Proactive Management.
Growth via High-Impact Value Proposition
Taking the previous strategy to the next level is a growth methodology that focuses primarily on leveraging the company’s biggest strengths to reach new customers or subsets of potential new clientele. This approach requires leadership to dive deeper into the customer interface in order to gain better insight that will help uncover your target audience’s wants, needs and preferences. Doing so can help you discover new or underserved customer groups as well as other hidden growth opportunities.
Related Post: How to Create a Strong Property Portfolio Growth Strategy
There are certain key elements that must be present in order for this growth strategy to be successful. First, existing customers must be segmented based on needs, buying patterns and the portion of profits/revenue that can be attributed to each group. This information must then be used to identify and develop innovative, high-impact value propositions for those customer segments that are most valuable. Finally, each of these proposals must then be tested and modified accordingly based on the results.
Because this growth strategy is so customer-focused, leaders and team members that interact most frequently with your property management customers should be an integral part of the process, as they can provide valuable insight and hands-on perspective.
Growth via Adjacent Opportunities
The third growth strategy involves leveraging strategic links to existing business opportunities. This option might be particularly attractive for well-established property management companies that have maximized the potential of their core business, achieved operational efficiency and are generating surplus cash flow.
This methodology can be executed by tapping into existing customers via a series of strategic meetings with those identified as being the most innovative. The goal is to gain insight into which alternative channels, new service offerings, joint ventures, geographical markets or other opportunities might exist that haven’t yet been explored. Understanding the desires and goals of your most forward-thinking customers can help bring into focus new and exciting avenues of growth and expansion.
If this strategy is chosen, leaders are advised to avoid the pursuit of opportunistic, one-off growth options, as they typically do not offer the possibility of long-term, sustainable results. Instead, adjacent growth opportunities that will integrate well with existing core clientele on an ongoing basis will have a much greater chance of success. As with any other growth strategy, extensive research, testing and tweaking should be an integral part of this approach.
When it comes to growing your business, the available options are many. The three approaches listed above have been put to the test with great results. Of course, the plan you ultimately choose must be carefully weighed and strategically implemented and the outcome will depend on the work you put in.
Have you applied any of these growth options within your own property management organization? What were the results? What insight or advice might you be willing to share with others? Please comment below. We’d love to hear your thoughts!
Get your free copy of The Property Manager's Guide to Proactive Management — and make the time necessary to plan for an extraordinary future.