How To Manage A Business In 4 Simple Steps
How To Manage A Business: The 4 Keys
1. Back to Basics
Long before you turn the lights on in your new business, it’s important to know exactly what this business will look like and how it will make money. As a real estate entrepreneur, this means doing the following:
Developing a thorough business plan: What need in a particular market are you filling? How do you plan to fill it? How will you acquire customers/leads? What’s your compelling reason for having the business? Include as many details as you can.
Identifying your customers: Be as specific as you can. Not just “homebuyers,” but “first-time homebuyers looking for starter homes in Imperial County, California.” Create an avatar of your ideal customer containing both demographic and psychographic information.
Planning your finances: It’s key you understand the numbers of your new ventures so you can confidently answer an essential question: What can I do to learn how to manage my own business? How will you generate income in your business? By when? How will you finance your start-up business costs? How do you intend to grow the business from a fiscal standpoint?
2. Build Your Infrastructure
Luckily, as a real estate entrepreneur, there aren’t the huge start-up costs associated with many other types of businesses. However, there are certain business expenses that we should be aware of before plunging head. And they include:
Business entity set-up: As a real estate investor, this will likely be in the form of a Limited Liability Corporation (LLC), which helps protect you and your estate from potential issues down the road (it also helps tremendously come tax time).
Marketing materials: This includes things like your website, a credibility packet, direct mail postcards, and even the email database tool you use to communicate with potential leads. Though you may not need every single item of your marketing funnel completed before you get started, you must as much set up as possible before you hit the ground running.
Team members: You may be just a one-person show at first, which is okay, but whether it’s hiring a part-time graphic designer or outsourcing your social media to a starving college student, it’s important to budget for additional members on your team.
3. Set Yourself Up For Success
Plunging into the deep end of the real estate business management pool can be daunting, especially at first. It can feel like you’ve got thousands of items on your to-do list, with just a few hours each week to accomplish them. Here are some keys to help you stay on track both personally and professionally:
Document as you go: No matter how small or large the business task, document the steps taken to execute it. This will make it easier to delegate the task at a later date if desired and help you become more efficient.
Keep your marketing focused and targeted: One of the biggest mistakes that new businesses make is to try to market to everybody under the sun. This can make your marketing costs prohibitively expensive and quite ineffective. Make your marketing as targeted and segmented as you can, and expand as required.
Set specific, realistic goals: The biggest reason entrepreneurs don’t reach their objectives is that their goals are too vague and unrealistic. Set actionable goals with a defined time period to help motivate you every day.
Go left, when everybody goes right: If the competition in your local market is communicating to clients and leads in a specific way, do your best to try something different. Take risks. Stand out. Don’t be afraid to be unconventional, yet still professional, in trying to attract would-be customers and clients.
4. Tweak And Improve
It may take a little while, but once you’ve got your business up and running, it’s time to look for areas where you can improve and optimize the business. Learning how to manage a business means learning how to improve constantly.
Budget weekly time for education: It’s important to keep tabs on your industry. Whether it’s gathering more data about market trends, or mastering the latest social media marketing strategy, always be open to learning new things that can help your business.
Look for small improvements: It can be tempting to look for huge, earth-shaking improvements that will radically boost your business. But the key to long-term success, whether improving your website conversion rate or simply shopping around for a cheaper graphic designer, is to look for opportunities for small tweaks, which can lead to consistent efficiency and improvement when put together.
Make time for life: Working non-stop on your business, without a break, is not only a recipe for burnout but deprives you of the chance to realize huge business gains found outside your industry. Make time for recreational activities and charitable functions (anything that helps you re-charge your battery). You might find it’s a new pipeline to a whole new side of your business.
Running your own real estate business can be rewarding in more ways than one: not only can you work for yourself, but you can also achieve financial goals you never thought were possible. That being said, it will take determination to get there. If you are reading to learn how to manage a business, start by reviewing the steps above. Then, when you’re ready to start developing your very own business plan, you might be surprised how easy the work comes to you.
Do you have any questions about managing a business we can help answer? Please share them in the comments below.