Property Management Owner's Dilemma: Get Bigger, Stay the Same, or Sell Out?
"There are just two directions; you're either growing or you're dying. There ain't no third direction." (Tommy Callaghan, Sr. in "Tommy Boy")
Business is a funny thing; an example may be never allowed to be satisfied. If you find a company, grow it, and commence to income it, then that's good, right? Isn't that the theory? I thought it was, at least.
However, it really isn't should you read the news, view tv, or attend any company conferences. The things that people need to discuss are:
What are the growth figures with regards to revenue? Projected to carlton property management ?
Is your social media marketing and digital strategy sound? Have you made some time and financial investments?
Have you considered geographical expansion? Franchise? Office openings?
And and much more and on. There apparently is not any downtime allowed! If you sit pat, you're going to fail. You must take the celebs of worldwide domination! The purpose of earning profits is always to reinvest it! Get on it! Get bigger! Now!
So rapid growth is left because only option, unless you need to be considered a "burned-out" property manager. If you choose to pursue slower, organic growth, you can be called "uninspired", a "non-visionary", and lazy. No one writes articles on people who stay the course! Those stories got chopped out at the start of the editing room. But despite many loud naysayers to the contrary, staying the identical is undoubtedly an extremely viable option. It's just the "keeping on, keeping on" strategy. Nothing is wrong with that!
But why don't you consider if you really are "uninspired" now? You are burned out! You are a property management company owner (or real estate professional) who doesn't desire to deal with the business enterprise anymore. You are looking to emerge and sell out. How would you do that?
You could engage a business broker to get somebody who wants to add property management for their real estate property brokerage company, or maybe desires to own a stand-alone property management company. These instances are pretty rare as well as the business broker would truly be earning their cash whenever they found somebody that will purchase your smaller firm (under $1M in revenues)!
What is more likely is basically that you would sell your management accounts to another property management firm. For example, I received instructions recently from with the largest property managers in the city; this letter was undoubtedly shipped to every property management company in your community. The letter asked to buy the property management accounts there was.
In mergers & acquisitions speak, they were by using a typical roll-up technique of buying up every smaller company in the region to accelerate their growth. They had no interest in our systems or procedures; they only desired to throw our management clients within their management machine. This would be an easy method for the crooks to grow rapidly. It also would have been a quick opportinity for "uninspired" property managers to move out in the business and make some quick money away from their company. A true win-win? Possibly!
To grow, stay, or go- it is a personal decision that shouldn't be the effect of other's expectations. There are possibilities it doesn't matter what your company's method is!