A successful property business requires a lot of active work and strategic decision making. And maybe you already prepared for this. But you still have a lot of consideration and planning to do before you put a large chunk of your hard earned cash into a property business startup!
Here are 5 things you need to know before you invest a single cent into the property market:
#1 Property Tech Is Exists and You Need to Know About It.
For the most part, the property industry has been a little slower to adapt new technologies and take advantage of the kinds of things that are possible in the 21st century. Most established property companies are still doing business more or less the way it’s been done for decades.
This slow uptake can actually be your key to success. If your startup comes using this new technology to your advantage, you’ll have a competitive edge to help you face up against the bigger, more established firms.
Before you get started, do your research and find out what’s out there. Figure out what established firms in the market are using (and what they’re missing) and develop your strategy with a keen eye for tech tools and resources that could make you an instant competitor.
#2 Pull Yourself Above the 42%.
Startups in the real estate industry have a failure rate of 42% as of 2016. That means nearly half of the companies going in are failing within 4 years. You don’t want to fall into that half of the statistical pool.
The main causes of a startup’s failure are incompetence and lack of experience (especially managerial experience and experience in your line of goods and services).
These main causes of failure can be avoided if you take careful steps to prepare yourself for the realities of running a property business. And the best way to do that is to consult people who already know how to do it. This leads us to our third point:
#3 If You’re Not Working with an Expert, You’re Losing Out.
Buying property as an individual is already a tough enough process. When you’re buying for commercial processes, there are whole new levels of complexity and obstacles to deal with. As a startup in the property business, expert advice will be an invaluable resource to make sure you don’t lose money on making huge mistakes that you could have avoided if you knew better.
Experts can make a huge difference. For example, Russells has a team of experts who provide a comprehensive set of services. That includes consultation and acting on your behalf in transactions, management, and more. A service like this will help make sure that your business gets off to the right start.
#4 Keep Your Business Up to Date.
The property market is definitely not new. People having been making money from owning land and property for centuries. So in order to give your startup the edge it needs to compete with established firms, you need to modernize.
Always be aware of up and coming business trends and look for ways to adapt your business model. Having a modernized and innovative approach to the property business is the most effective way to secure your piece of the market.
#5 You Need to Become an Expert at Trend Analysis.
The key to success is being able to find a neighborhood or area that is currently priced very low but shows signs that it will soon be trending toward high prices. This is essentially what everyone in the market is trying to do.
This means that you need to be able to recognize what kind of features can be used as predictors. And you need to develop your own way of predicting using criteria that others might not yet know about. This can be things like checking planned new building projects like upscale stores, new train stations, new roads, and so on.
The main lesson to take away from this is that you need to put a lot of energy into preparation to ensure consistent new business. That means consulting experts, learning more about the industry, developing your skills (especially your ability to analyze trends), and finding out what you can do and use to give yourself the strongest possible competitive edge. If you go into the industry with this kind of preparation, you have a great shot at joining the ranks of the successful half of startups!