10 tips for creating a growth strategy for your business

Your growth strategy for your property management business should focus on your market area’s opportunities rather than the number of properties you manage. That’s because growth includes how you win and retain clients. Here are 10 tips to help you create a successful growth strategy for your property management business.

1. Know your why

When it comes to designing your growth strategy, knowing your ‘why’ is critical for its success. Your why lets you navigate the highs and lows of running your property management business and keeps you focused on your goals. If you want to grow your business, start with defining your why so that every decision is driven by your purpose.

2. Design your how

Once you know your ‘why’, the next step is defining your ‘how’. Determine how you will design and implement processes to achieve scalability, serviceability, sustainability, stability and saleability. Undertaking this process helps you understand your property management business’ numbers, which ultimately allows you to create a plan to grow through any market condition.

3. Plan your when

It’s essential to also understand your ‘when’, so you can prepare for every growth phase. Determine what resources you need at each stage of your strategy. For example, your timeline may be that when you reach $15,000 per month in management fee revenue, you will have approximately 80 doors under management. As a result, you will need to hire one support person to assist with administrative tasks, so your focus can remain on caring for current clients and bringing in new clients.

4. Determine your metrics

Your property management growth strategy requires KPIs derived from your business’ numbers. For example, if your average monthly rent is $2,000 and your management fee is 10% to achieve $10,000 per month in management fee revenue, you will need 50 doors under management. If growth builds to 10 new doors per month, you will need a team to service your clients. Knowing your numbers allows you to determine critical metrics that track your progress.

5. Identify your market opportunities

Once you select your market area, you should then identify its opportunities. That’s because the higher the concentration of your managed doors, the higher your profit margin and productivity rates. By knowing your market, for example, its average rent, size, demographics, lifestyle and future growth plans, your team will be seen as the market area experts, which will help your brand stand out and grow.

6. Share your irresistibility

Property management is a highly competitive industry, so the best way to compete is to share your ‘irresistibility’. Instead of competing on management fees, you should compete on what makes your brand different. Whether it is your customer experience or brand story, determine what makes your property management unique and market that factor. Your irresistibility will act like a magnet attracting clients to your property management business and helping it grow.

7. Protect your fees

When it comes to your management fee, you should never discount it. Instead, review your other service fees and use them to negotiate or offer incentives. That’s because your management fee revenue is the only revenue source that is used to calculate the asset value and viability of your business. Set your management fee percentage and market your value, so more prospective clients choose your agency.

8. Nurture your relationships

Real estate has two types of relationships: transactional and relational. While sales are transactional, property management is relational first and transactional second. By nurturing strong relationships, bonds are forged between your brand and your clients, creating dependency on your service. As a result, your clients will be loyal to your agency despite any market changes or challenges, which helps protect and boost your bottom line.

9. Build your business from within

By focusing on your current clients, you can grow your business from within. Building strong client relationships creates strong brand advocates for your property management business. If your clients love the service they receive, they will naturally want to stay and tell others how great their experience has been with your agency. These raving fans will then spread trusted reviews, which attract more enquiries and managements. 

10. Manage your numbers

Understanding your property management business’ numbers can help you retain more clients. If you want to focus on growth, you need to focus on retention. For example, if your rent roll has 100 doors with a steady growth of 5 doors per month, it should increase to 160 doors within 12 months. However, there is usually a natural average attrition rate of 17%, resulting in an expected 133 net managements in 12 months. By knowing your business’ numbers, your attrition rate should reduce to 8%, meaning your net managements will be 147 after 12 months. Monitoring your revenue averages helps you understand your growth and retention rates, so you can make better strategic decisions.

By implementing these tips, you can create a successful growth strategy for your property management business. What’s more, if you are looking for powerful property management workflow automation software to help you implement, measure and monitor your strategy, look no further than Flussos. Click here to book your free 30-minute live demo to learn everything you need to know about the platform and how it can help grow your property management business.Want to learn more? Visit www.flussos.com.