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:
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​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.​
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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.
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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.
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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.
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Step Six: Systemise and document your daily duties.

Build step-by-step systems for tasks that are repetitive, and then outsource them to contractors.

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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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Own a management rights business? Planning on selling? Fill in your details below:​

Buyers will check for the following:
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1. Reoccurring income
   Buyers like assurance that they will be able to maintain or grow the income from the business.
2. A long agreement length
   Buyers like long-term agreements with a lot of time remaining.
3. The duties that need to be performed to ensure continued income
   They need to make sure the work will get done and what resources will be needed.
4. The systems in place that will automate the duties as much as possible.
   Are there systems in place, or will they have to create them?
5. How well the team performs and if the business requires staff.
   Do they work as a cohesive team to get the work done efficiently?
6. The product (location, room layout, presentation, services, client base) and training that’s offered. All things being equal, systemised and well-documented handover training adds value to your business.​

​The multiplier achieved also depends heavily on the sales specialist you engage to market your management rights.

Over the years, we’ve fine-tuned the process of getting management rights owners the highest multiplier in the quickest way possible.

​​It’s really quite simple. The more reoccurring income/cash flow your business generates, the more value the bank and buyer will place on it. And the easier, more efficient and automated your income is, the higher
the multiplier the bank and buyer will place on your income. This means you get the double effect of a higher income and less time spent in the business, which equals more money and freedom.

There are also other factors that will increase the value of your business, such as goodwill, a great team and a training system. Two years ago, I offered a higher price for a business, just because I knew that the training the business operator gave me would be worth $50,000, which is the cost of hiring a business coach.

Most managers know ways to increase their income, but many are reluctant to take the key steps in order to get the results they want. The biggest reason is that they feel they don’t have the time to implement these strategies due to their day-to-day workload or constant distractions. In our office, we play a game called ‘Did I win, or did the distraction win?’

I have a four-step plan for getting tasks done in half the time:

Step One
Make a list of all the tasks you do on a daily basis.

Step Two
Prioritise your list to make sure the tasks that make the most impact on your business are at the top.

Step Three
Systemise the reoccurring tasks. Figure out which ones can be done at certain times of the day. For example, taking the general waste bulk bins in the evening

Step Four
​Turn off all distractions. Slice your time into twenty-minute blocks, and get on with finishing the task at hand.

​Once you’re efficient at doing a task, time yourself, and make a training video for your staff. Then you have the option of continuing to do the task yourself or delegating it, so you can focus on income-increasing activities.

​Interested in selling Management Rights? Fill in the form below to get The SIRE Team to call you :)
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​Tax time is just around the corner and with the stable cash flow generated from management rights lots of management letting rights owners who bought management rights from SIRE Management Rights told us that they are facing big tax bills every year. Well we thought it is a great problem to have.

In the Management rights formula we have dedicated a whole chapter on this topic in Chapter Seven. Aiming to help our clients to reduce tax legally and live the lifestyle they deserve.

1. Ensure you have the right structure
2. Consider how you are paying yourself
3. Create and utilise a bucket company
4. how to split the ownership of your company to your trust
5. Use the STS – Simplified Tax System
6. Write off obsolete and slow moving stock
7. Utilise different classes of shares
8. Use losses in other business and investments
9. Utilise the benefits offered by superannuation
10. Understand and better manage fringe benefits tax
11. Bonus offered by The management rights formula proactive accountants

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​One of the common mistakes is not considering the potential personal risks. Business buyers tend to forget the possible impact on their personal and family assets. They might be directly affected by the wrong structure as soon as their business runs into trouble.

Keep in mind that it’s important to have legal documents when it comes to managing a corporation. All corporations should have an agreement declaring the rights, responsibility, financial contributions, distribution of rewards and provisions for separating interest when there are any changes of circumstance for all parties involved.