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What Is Your Business Strategy?

What Is Your Business Strategy?
When it comes to jeans, Old Navy is my “go to” store. I shop at Old Navy because I like the fit of their jeans and I love the price! The negative is that the jeans don’t last as long, or keep their shape and color (for me) as more expensive jeans I’ve had in the past.    If you’ve shopped at Old Navy you know there is a difference in quality between their clothes and those found in their sister stores Gap and (especially) Banana Republic. Yet, Old Navy has recently been more successful financially than Banana Republic and especially Gap. Through Q2 2018 sales at Old Navy stores increased by 5%; sales increased at Banana Republic by 2%; while sales at Gap decreased by 5%.* The poor performance of Gap stores resulted in an 11% decrease in Gap Inc. stock   What is wrong at the Gap?   I think Gap stores have performed poorly because they don’t have a sustainable business strategy. Why is this important for you? Because for your company to succeed you need a sustainable business strategy and it requires you to make a choice. Let me explain further…   There are three basic elements of business: price, service and quality. In my experience for a business to succeed it needs to choose two of the three to compete in, but it cannot choose all three, or the business will not succeed in the long term. Why? Let’s look at the Old Navy/Gap example I began this post......
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Multifamily, We Have a Scaling Problem

Introduction First off, we need to explain what ‘scaling operations’ means. Operations are ‘scalable’ if they can use a small increase in costs to generate a large increase in growth. Let’s break it down further. Currently, when a property management company (PMC) gets more properties, it has to invest in more staff. This added cost of hiring new employees cuts into profits. But, with scaled operations, that’s not the case. An employee will can create a system for how to do things and then scale it.   Imagine you have a property management company with 5 marketers managing 50 properties. Now, what will happen if they get 50 more properties? With the standard operating system, the company has to double the amount of marketers. But, in a scaled operating system, the company may only need to add one more marketer.     So, we learned that scaling operations reduces the amount of capital needed for growth. Without scaling operations you are missing out on a few buck on the bottom line. No big deal, right? Wrong.    Let's take a look at the problems that arise when you are not scaling operations.       Symptoms of an Unscaled PMC Property management companies know they have inefficiencies in their lead-to-lease process. We know agents don’t have the tools or resources to spend their time efficiently. Their lead follow-up is weak, systems are not consistent, and scalability is difficult to achieve. Jake Meador, director of content strategy at Rentping, echoes our thoughts stating, “…leasing efficiency improves by improving the overall marketing and leasing system.”    Clerical Work Fills the Day Everyone in bus......
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Business Plans for Multifamily Properties

Business Plans for Multifamily Properties
“A goal without a plan is just a wish.” – Antoine de Saint-Exupery “If you don’t know where you are going, you’ll end up someplace else.” – Yogi Berra “By failing to prepare, you are preparing to fail.” – Benjamin Franklin How current is the business plan for your multifamily property? If you said “Years” or “Business plan? Why would I need a business plan?” we need to talk. According to the Small Business Association, a business plan is “an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.” The question isn’t “why would you?” it’s “why on earth wouldn’t you?” The business plan is your strategy for how you intend to make your business a success and every multifamily property needs one. But before you get overwhelmed in what you believe the minutiae to be for this process, take a breath. Now, follow these steps: Write a mission statement. This is a one-sentence explanation of why your property exists. Example: “Providing residents with professional, courteous, and timely service that exceeds their expectations is not an accident.” Write a vision statement. This is a one-sentence forecast of where how you see your property in five years. It’s the essence of what you want your property to become. Example: We are the leader in providing quality, smart growth, multi-family rental housing. Identify your market. Who is your target audience? Have you done any research to understand that typical consumer who comes looking for a place t......
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