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I’d like to share with you a simple seven-step process that will improve the value of your business. One important thing to remember is that you want a fair exchange. In other words, the only reason you should get paid more is because you provide more value to your clients and customers. Then they will be your raving fans, and your business will thrive. Here are the seven simple steps that will get you on the road to increasing the value of your business:
Step One: Go through your pre-sale profit-and-loss statement.
Brainstorm ways to reduce your costs and improve all aspects of your business. If you’ve been with the SIRE Team all along, you should be pleased, as we always work together to improve your business worth on a regular basis.
Step Two: Take action on the ideas that can be easily implemented.
There was one client we had, a manager who was spending $7,500 a year for a social media company to manage their Facebook and other social media sites. However, the manager wasn’t receiving any enquiries.
We had a look at what was going on and identified the problem. It was because the page wasn’t set up correctly, and there weren’t any links to their website, also known as the marketing funnel, so people would just leave after reading their nice post. We had them change to a different company at half the cost, set up the marketing funnel correctly and now the managers have a zero-day vacancy rate while saving $3,500 a year.
Step Three: Look at the complex/building from your customers’ and tenants’ point of view.
Recall and record all the feedback your customers and tenants gave you when you did your open inspections. Also, look at your competitors’ buildings and online advertising. Understand and list the reasons why tenants/customers might choose their buildings over yours, and discuss the items on your list with your owners and committee members. There will be new projects to improve your building, and you may get paid more to carry out extra work if the tasks aren’t within the scope of your agreements or their expectations of you as the building manager.
Please contact SIRE if you would like to see real-life case studies or need assistance.
Step Four: Look at your building from your investors’ point of view.
All investors want to get as much rent as possible, but some properties managed by outside agents may not know you or the superior services you provide if they don’t live on-site.
For example, they might not realise you get higher rent rates than outside agents, so you’re in the best position to recommend areas that require refurbishment. If there’s something in the common areas that needs replacing/repair/upgrading, then you should check the Sinking Fund Forecast (SFF), and see if there’s money allocated for these improvements.
If there are no allocations for expenditure in the SFF, you will need to discuss the issue with the committee and arrange for a quantity surveyor to come out and prepare a customised SFF for your building. Once this is completed, the expenditures can be allocated in the next financial year’s budget.
If items inside the units require replacing, you will need to discuss this directly with the owner. Sometimes they don’t want to spend any money on their unit, so you need to adjust the rent rate accordingly to compete with the market. Sometimes the owner does want to spend money on improving their apartment, and you can upgrade it when it becomes vacant. Or maybe the owner does want to upgrade, but they don’t have enough cash to do it straight away. This is where you can use the strategy of withholding a portion of the weekly rent that you and the owner agree upon and deposit it into your trust account, so when the tenant vacates the property, the upgrade can be completed.
Once you’ve done your assessment and made the improvements, adjust your rent accordingly. There are service providers who can assist you with this process. Contact the SIRE Team for more details.
Step Five: Investigate all marketing and sales options.
Many companies use social media to acquire a fortune in the accommodation industry. Make a list of all marketing ideas you could implement to increase interest in your complex.
For example, one short-term accommodation provider made the pool area into the most Instagrammable place during that year, so lots of guests would take photos and post them on Instagram. People would see the photos and want to come and share the experience.
Step Six: Systemise and document your daily duties.
Build step-by-step systems for tasks that are repetitive, and then outsource them to contractors.
Step Seven: Utilise the latest technology.
Update the technology you’re using, so you become more efficient and productive. Investigate the latest tools, equipment, machines, software, hardware and apps that will help you get your work done in half the time.
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