When the folks at Oracle asked leaders of some of the fastest growing companies what they felt the biggest obstacle to business expansion was, the top answer was inability to manage fast growth. The ability to scale came in at a close second. Thankfully, these things can be overcome. The key is the ability to recognize when a business is ready to take that next step so that the inevitable twists and turns can be accounted and prepared for in advance. That being said, here are five signals that your property management business may be on the path to growth sooner than you think.
The Flame is Still Burning
When you first launched your property management business (or first came on board with your current company), you had a fire in your belly. You were passionate about making an indelible impact in the industry and you channeled that passion into a successful business venture. If time has passed but you still have that desire burning in your belly, chances are you’re prime for growth. Remember – expanding a business is no easy feat. It takes hard work, grit and unwavering dedication. The passion is what will carry you through when the going gets tough.
You’re Financially Stable
Actually – more than that. You’re finally profitable. Your property management business has passed the “break-even” point and is now raking in the revenue. While finances aren’t the only thing that fuel growth, they’re certainly critical to its success. The key is to crunch the numbers and do some projecting. If you can legitimately see a clear and rational path toward sustainable profitability in the future, growth is certainly a possibility worth pursuing.
You’ve Got a Killer Core Team
Achieving rapid growth requires more than just executive buy-in. Everyone needs to be on-board and ready and willing to put in the work necessary to make it happen. If your property management business is currently being held together by a motley crew of friends, family members and former college classmates, you’re probably not ready. On the other hand, if you’ve managed to pull together a strong, solid team of qualified, dedicated professionals skilled in key areas like accounting, marketing, communications and sales, scalability is entirely attainable.
You’ve Got Cash to Bank On
One of the biggest reasons businesses collapse under rapid growth is lack of adequate cash flow to support the changing needs. When a company grows, everything from payroll and marketing to rent and utilities will subsequently increase. If you’re not ready for these changes, you could find yourself in hot water and fast. Growth shouldn’t be pursued unless and until there’s enough positive cash flow to cover these fluctuations and still have enough left over to put back into the business.
Processes are Already in Place
When you’re just starting a business, “winging it” may be enough to get you by. But as you grow, it’s critical that your company is organized and prepared to navigate the choppy waters ahead. Before moving forward, take a good long look at your current processes and systems. Are they efficient? Are they scalable? Are there gaps anywhere that could pose a problem if volume suddenly increased? Investing in technology like property management software can address these issues through things like automation and streamlined processes, which will better position your company to roll with the punches.
Business growth isn’t easy, and if you pursue it too soon or too quickly, it could end up setting your company back. Conducting an in-depth assessment of where your property management business is currently – particularly in terms of the above factors – will allow you identify strengths, address weaknesses and ultimately help you better prepare for sustainable growth.