Property Management Owner's Dilemma: Get Bigger, Stay the Same, or Sell Out?Posted by Due Mcguire on May 20th, 2021 "There are only two directions; you're either growing or you're dying. There ain't no third direction." (Tommy Callaghan, Sr. in "Tommy Boy") Business can be a funny thing; one is never able to be satisfied. If you take up a company, grow it, and commence to income it, then that's good, right? Isn't that the concept? I thought it was, no less than. However, it isn't should you look at news, view tv, or attend any organization conferences. The things that people wish to mention are: What are your growth figures when it comes to revenue? Projected in the market to 2015? Is your social media marketing and digital strategy sound? Have you made some time and financial investments? Have you thought about geographical expansion? Franchise? Office openings? And all night and so on. There apparently is not any downtime allowed! If you sit pat, you're going to fail. You must reach for the heavens of worldwide domination! The purpose of making money is to reinvest it! Get on it! Get bigger! Now! So rapid growth is left as the only option, if you don't wish to be considered a "burned-out" property manager. If you choose to pursue slower, organic growth, you may be called "uninspired", a "non-visionary", and lazy. No property management clifton hill writes articles on business people who stay the course! Those stories got chopped out early in the editing room. But despite many loud naysayers to the contrary, staying exactly the same is certainly an extremely viable option. It's just the "keeping on, keeping on" strategy. Nothing is wrong with that! But what about if you actually are "uninspired" now? You are burned out! You are a property management company owner (or real estate professional) who doesn't wish to deal with the organization anymore. You are looking to escape and then sell on out. How would you do this? You could engage a business broker to get somebody who would like to add property management on their real estate brokerage company, or simply wants to own a stand-alone property management company. These instances are pretty rare along with the business broker would truly be earning their cash when they found somebody that will purchase your smaller firm (under M in revenues)! What is a bit more likely is that you simply would sell your management accounts to an alternative property management firm. For example, I received correspondence a few days ago derived from one of of the largest property managers around; this letter was undoubtedly delivered to every property management company in the area. The letter motivated to buy the property management accounts there were. In mergers & acquisitions speak, we were holding having a typical roll-up technique of buying up every smaller company in your community to accelerate their growth. They had no interest in our systems or procedures; they merely wished to throw our management clients inside their management machine. This would be a timely method for these phones grow rapidly. It also would have been a quick way for "uninspired" property managers to get out in the business making some quick money away from their company. A true win-win? Possibly! To grow, stay, or go- it's a personal decision that must not be the result of other's expectations. There are options available no matter what both you and your company's technique is!Like it? Share it! More by this author |