Most prominent real estate investors across the country will attest to the advantages awarded by small business systems. Not surprisingly, systems capable of replicating successful results have become synonymous with two of the most fundamental components regarding the well-being of a company: productivity and time management. Without these two aspects working on your behalf, investing in real estate will be much more difficult than it needs to be.
There aren’t even enough hours in the day for the savviest of real estate investors, let alone those that have developed efficient real estate business systems. What’s more, today’s most successful entrepreneurs have dedicated countless resources to unlocking the secret of efficiency. As it turns out, the foundation of any successful real estate operation has, and always will be, small business systems.
Fortunately, it is a lot easier to avoid becoming the victim of an inefficient business model than you may realize. Small business systems, for that matter, are entirely capable of scaling your real estate business in less time than anything else I am currently aware of. In their truest form, proven systems optimize the use of resources while significantly reducing the amount of time and effort required to complete a task. What more could a real estate entrepreneur want?
Let’s take a look at how small business systems can help you take your real estate career to the next level.
The Real Advantage Behind Small Business Systems
Setting The Stage
When I first embarked on my own real estate business endeavor, I studied a variety of experts to help lay the foundation for my own business model. The single most impactful lesson I learned through this process was the importance of documenting processes; a concept heavily weighted in Michael Gerber’s The E-Myth Revisited. While there were many lessons to take away from his book, one concept resonated with me on an entrepreneurial level more so than any other: the importance of implementing and documenting small business systems.
Putting Real Estate Business Systems To Work
Systemization is the process of breaking down a complex activity into a more structured course of action; it is essentially a blueprint for how things should be done in order to achieve the most optimal results. Real estate business systems are the foundation on which your whole company should be structured. Everything from ordering office supplies to marketing strategies should have a system in place that allows the process to replicate a predictable outcome on any occasion. You should even have a system in place for creating systems.
Do not let the prospect of introducing systems into your business management overwhelm you, as it is entirely possible to make incremental adjustments to what you currently have in place. The ultimate goal is to replace every small business system you have with a more efficient version, but the change doesn’t have to happen overnight.
We started by documenting our accounting processes, our acquisition processes, our follow up processes, and everything in between. What did this allow us to do? More so than anything else, it allowed our staff to make the most efficient use of their time and scale our business accordingly. Upper management was able to set up processes and hire a team below them to carry out the systems they had previously been carrying out themselves. In turn, our team was able to focus on more important matters, bigger picture ideas, and the real estate business as a whole.
No other practice has become synonymous with productivity and growth more so than small business systems and the applications they have in a corresponding professional environment. The right systems can provide even seasoned business owners with the best way to approach a task, and see to it that time is optimized for better use elsewhere.
The benefit of a truly proven real estate business system becomes more pronounced when you contrast it against an inefficient process. You can’t truly understand how important small business systems are to a company until you have experienced them first-hand. They are essentially the difference between proficiency and ignorance. Those who don’t have the appropriate blueprints in place may not even recognize they need them, but I can assure you those that took the time to implement the appropriate strategies are reaping the rewards.
Whether you are a part-time worker, a mid-level employee, or an aspiring entrepreneur, you can take advantage of small business systems. However, to realize your fullest potential, you must be proactive and have the foresight to understand which systems will help you realize your goals. Understand that while systems will inherently grow organically once they are in place, someone needs to take the initiative and serve as the catalyst to get them up and running.
Every company can improve in one area or another. Take a good look at where your business needs help, and consider which tasks could be optimized through the implementation of tried and true real estate business system. Nothing has the ability to make a habit out of success quite like a system that has proven it is capable of delivering predictable results.
Take Inventory Of Your Real Estate Business Systems
I encourage you to take inventory of every task that is destined to repeat itself, and document your current approach. Take note of the steps, and anything else that stands to receive criticism. This exercise should enable you to create a checklist of sorts, and – perhaps even more importantly – a predictable outcome. At the very least, understanding your current strategy, or lack thereof, will give you insight into what needs to be addressed.
Remember, the best small business systems are those that will move your company forward. There is no universal, one-size-fits-all solution, so the sooner you can take inventory of the small business systems you already have in place and can deduce where you are lacking, the better off your company will be in the future. It is important to note, however, that nobody is going to do this for you; you must remain proactive in your efforts to improve small business systems on a daily basis. Don’t hesitate to fine tune those you already have in place.
Remember, what you choose to do with the time small business systems will save you can set the tone for future growth. Don’t let this opportunity pass you by.