Flexibility within the real estate industry will be the key to your business success in 2014. However, what does that mean and how can real estate investors leverage more of it?
Those that have been around long enough to navigate their way through several phases of the housing cycle are often quick to point out that a lack of flexibility can lead to unparalleled failures. It’s easy to see how this concept can be applied to individual investors, large financial institutions and mid-sized real estate companies.
Many subscribe to the idea of the U.S. housing sector entering a significant boom period. Some may even argue that it would be pretty difficult to fail in the current industry. However, the dramatic speed in which markets, consumer habits, competition and technology are morphing, it makes flexibility even more important.
With that being said, which ways can real estate professionals become more flexible to stay ahead of the curve?
Building a Flexible Real Estate Model
An adaptable business model is essential to leveraging flexibility. As we are about to see; just making the tentacles of your operation flexible isn’t enough. Marketing and branding can be tweaked relatively easily. Yet, if the business model can’t keep up with changes, things may still fall apart.
So what does this mean?
Adopting and sticking with proven systems is a smart way to get started. A good system can help you avoid the pitfalls so many encounter. However, it is important to stay flexible and have an operation which is capable of scaling and embracing new trends quickly.
This applies to both staffing and overhead, in particular. How easy will you be able to keep scaling up? Can existing staff be used to dive into new niches to save on labor? Are they spread out enough to keep your real estate business operational if the worst case scenario happens?
How fast can your operation adapt to changing focus? Do you have a reserve fund to finance changes? These are questions you must ask yourself.
The Importance of Real Estate Marketing Mix
Maintaining a good real estate marketing strategy is a big part being flexible. Far too many real estate investors constantly look for something better, and are always jumping from one tactic to the next before any have a chance of success.
Constant improvement is smart, but many forms of marketing can take time to gain traction and deliver their best ROI. Engaging on multiple fronts also avoids the stall that can come from a complete transition.
There are many forms of real estate marketing that work. You may want to include: email, direct mail, pay per click, social media, content marketing, print and outdoor advertising, and even cold calling.
Finding Riches in Different Niches
While there is a lot to be said for specialization, engagement in multiple niches can give real estate investors and agencies a big head start when things begin to change.