4 Things That Will Stunt Your Business’ Growth
By Paul Esajian on September 2, 2016
With any diet last few pounds are always the hardest to lose. Things may start off great but eventually you hit a wall and level out. If you are like most people this is a common scenario. The moment’s right before accomplishing your goals are always the hardest. Sure, getting started in real estate is tough but with progress your motivation increases. It is when your business stalls that you start to doubt what you are doing and how you are doing it. Instead of plowing through it is human nature to look for shortcuts and try to find an easier way. There is no better way to stunt your business growth than by looking for the easy way out. In the real estate world you need to be moving forward at all times. It is better to take baby steps forward than make a giant leap backwards. Here are four things to avoid as a rookie investor.
- Not Valuing Time. Time is the one thing that makes us all equal. Regardless of how many deals you have closed or what is going on in your business you can’t get time back. The only thing you can do is control how you spend it. As a real estate investor you dictate how you shape your day. It is tempting to try to be everywhere and do everything yourself. While this may work to save some money it leaves you spread thin and unable to focus on what your business really needs. Even if you burn the candle at both ends and maximize your day it is important to think about if you are really being as efficient as possible. There is a difference between working hard and working smart. Almost everyone in business for themselves is willing to work hard. It is only when you understand the best use of your time that you will see your business take off. Sometimes taking a step back and delegating is the best thing you can do.
- Making Short Term Decisions. Every business has its share of ups and downs. Some of the biggest businesses in the world have had periods of stagnant growth or times when they things just didn’t work. It is in these times when you need to make sound decisions. As tempting as it may be you need to fight the urge to do whatever it takes to get through your current problems and think long term. You never want to do something that you will regret in six months to a year. Some will argue that if you don’t get through the short term there will be no long term. This may be true but if you mortgage your future you are only delaying the inevitable. Taking a high interest rate loan to stop the bleeding but seem like the best option but is this really the best option? Before you make any decision you need to think about the long term ramifications and whether or not you can live with the consequences.
- Basing Decisions On Hope. Investing in real estate should mean knowing exactly what you are getting into. You should understand all of the numbers and scenarios before moving forward. Where many businesses get in trouble is relying too much on projections. Projections give you some idea of what may happen but is never a sure thing. There are variables that influence reality. In the real estate world you can’t make your decisions based on hope. With a few upgrades and shifts in the market you may be able to command a rent price that yields strong cash flow. What if everything doesn’t break right? Are you left with a property that you are still comfortable with? Nothing is ever a sure thing but you need to rely more on the data than intuition and positive thinking. If you are in real estate long enough you will see that the market and numbers never lie. Going with your gut may help you on one deal but more times than not it will get you in trouble.
- Assuming Relationships. The real estate business is largely dependent on the contacts you make. A good number of deals come from people in your network. One of the mistakes that many businesses make is assuming that just because someone worked with them before they will do so again. A prior relationship may put you at the front of the line but it doesn’t guarantee anything. A portion of every day should be spent developing relationships. Even if you worked with someone a handful of times you can’t take it for granted. Something as small as a quick email or text message will put you back on their radar and keep you on their mind. Instead of doing less with people you have worked with you should do more. Show them that you appreciate their business or everything they have done for you. You should cement the relationships you already have while always looking to build new ones. The minute you start neglecting the people in your network your business will start to suffer.
Growing a successful business takes a balance of looking forward while also keeping an eye on the present. Taking small steps forward may not be exciting but it beats the alternative.