Property Management Owner's Dilemma: Get Bigger, Stay the Same, or Sell Out?

· 2 min read
Property Management Owner's Dilemma: Get Bigger, Stay the Same, or Sell Out?

"There are just two directions; you're either growing or you're dying. There ain't no third direction." (Tommy Callaghan, Sr. in "Tommy Boy")
Business is a funny thing; you are never permitted to be satisfied. If you take up a company, grow it, and start to cashflow it, then that's good, right? Isn't that the thought? I thought it was, at the very least.
However, it isn't in case you see the news, view television, or attend any business conferences. The things that people desire to speak about are:

What are the growth figures in terms of revenue? Projected over to 2015?
Is your social media marketing and digital strategy sound? Have you made time and financial investments?
Have you contemplated geographical expansion? Franchise? Office openings?
And all night as well as on. There apparently is not any downtime allowed! If you sit pat, you're destined to fail. You must grab the celebrities of worldwide domination! The purpose of making money is usually to reinvest it! Get on it! Get bigger! Now!
So rapid growth is left because the only option, unless you wish to be considered a "burned-out" property manager. If you choose to pursue slower, organic growth, you can be called "uninspired", a "non-visionary", and lazy. No one writes articles on entrepreneurs who stay the course! Those stories got chopped out early in the editing room. But despite many loud naysayers to the contrary, staying the identical is obviously a very viable option. It's just the "keeping on, keeping on" strategy.  property management carlton  is wrong with that!
But what about in case you are really "uninspired" now? You are burned out! You are a property management company owner (or real estate agent) who doesn't need to deal with the company anymore. You are looking to escape and then sell on out. How would you try this?
You could engage a business broker to discover someone who really wants to add property management on their real estate property brokerage company, or perhaps would like to own a stand-alone property management company. These instances are pretty rare along with the business broker would truly be earning their money whenever they found someone who will purchase smaller firm (under $1M in revenues)!
What is a bit more likely is that you simply would sell your management accounts to a different property management firm. For example, I received a letter the other day from in the largest property managers around; this letter was undoubtedly shipped to every property management company in your community. The letter inspired to buy the property management accounts there was.
In mergers & acquisitions speak, they were having a typical roll-up strategy of buying up every smaller company in the area to accelerate their growth. They had no curiosity about our systems or procedures; they simply planned to throw our management clients to their management machine. This would be an easy way for these to grow rapidly. It also would be a quick way for "uninspired" property managers to get out with the business making some quick money off of their company. A true win-win? Possibly!
To grow, stay, or go- it is a personal decision that really should not be the consequence of other's expectations. There are possibilities regardless of what you and your company's strategy is!