How do you scale a Rent to Serviced Accommodation business?
One of the hardest parts about achieving your goals is knowing how to scale quickly and efficiently. Throughout our journey, we’ve met hundreds of investors going through the same problem…
They don’t have enough time to find/source the next property
If this is you then your certainly not alone. We’ve found by speaking to several professional management/investment companies that as you begin to scale, managing your business takes over and can severely hinder growth. This could be for several reasons such as:
Dealing with new enquiries.
Organising cleaners and house linen teams.
Communicating with guests.
Dealing with any urgent problems at the properties.
Setting up and staging properties.
Processing payments.
And much more…
What is the knock-on effect?
The Knock-on effect is that your business loses momentum, you don’t meet your goals, you lose market position and ultimately your bottom-line profit stays the same or even decreases. This is not a position any of us want to be in.
So, how do we stop this from happening?
In order to make sure your business grow, it is important to consider leveraging other people’s/businesses time, network and knowledge to your advantage.
The Power of Leverage allows you to increase your bottom-line profit from other people. There are 4 key ways you can leverage other people:
1. NOT HAVING ENOUGH TIME
The most obvious one is TIME. By using a professional company or team to find your properties, you are using their time to increase your portfolio of properties without having to spend anymore of your own time. This allows you to spend your time on growing the management side of the business.
2. STUGGLING TO BUILD NETWORK
The second one is NETWORK. One of the key things when leveraging is to make sure that the company or individuals you choose to work with can deliver. The last thing you want to do is waste time waiting for someone to deliver who can’t. This is the power of leveraging a team with a network because instead of you having to establish a network which you don’t have time to do, you can leverage a company who has already spent years building a network in your areas. THIS ALLOWS YOU TO LEVERAGE SOMEONE ELSES EXISTING HARD EARNT CONTACT BASE.
3. LACK OF KNOWLEDGE
The third one is KNOWLEDGE. Although you may have knowledge on how to source and certainly a lot of knowledge on how to manage, leveraging an experienced company who can source you deals could actually increase the quality of the deals found due to the knowledge built up by the team/individuals over several years.
4. FOCUS
It’s hard to do everything at once to the best of your ability, pretty much impossible unless you focus 100% of your energy on that task or process i.e. management of properties. Management companies often suffer on bookings and efficiency by sourcing as well because they take there attention away from the core activities of the business.
A sourcing company can help you focus on what you need to do to achieve your goals.
Any good team/individual should be able to deliver on all 4 aspects of leveraging for your business to scale so it is important you work with the right people who can deliver.
Following this method of leverage will allow you to:
1. INCREASE YOUR BOOKINGS
Leveraging a good sourcing company means you can concentrate on driving revenue into all your properties increasing your return on investment on each property. you’ll be able to do far more outbound marketing to companies in your area or leisure guests and convert lots more bookings meaning you save 10% more on expenses on every booking. This will significantly increase your net profit per property.
2. IMPROVE YOUR CUSTOMER SERVICE
One of the biggest factors that increases your bookings is the customer service. Leveraging your time allows you to focus on your customers experience and do the extras that make an experience memorable for you guests. This could be something as simple as champagne on arrival for someone’s birthday. This customer service will increase the chances of referrals and repeat bookings.
3. BUILD YOUR BRAND AND PARTNERSHIPS
Focusing solely on building the brand and network of the company will allow you to make strategic partnerships with national companies who need accommodation. By delivering this consistently, which leverage allows you to do, you will be able to have companies, guests and tourists coming to you rather than you having to find them. Again, this will increase your net profit.
We use the analogy of a sports team. The manager of the team makes the decisions, but the scouts go and find the new players. This allows the manager to focus on getting the best performance from the team whilst they leverage the scouts time and knowledge to recruit the best talent next.
We have worked with lots of management companies who have leveraged us to successfully scale their business. If you are interested in discussing further, please contact the team on info@ppsltd.net OR 07976 198079.
