Business Management Tips for the New Year

Investing in real estate is no different than running a business. All of the same elements are at play, there’s just a different set of circumstances. But I’ve seen too many investors make the mistake of not treating their investments like a business, costing them significant time and money and causing plenty of stress as well.

If you want to be a successful investor, it’s critical that you handle your properties like you’re running a business. Here are the management tips you need to implement now for a more successful 2017:

• Review your business plan. You have a business plan, right? If not, write one. It should be realistic, goal-oriented, and include detailed strategies for meeting those objectives. If you’ve already got a plan, dig it out and read it over. Does it still align with what’s happening right now? Revise as necessary, and use your plan for guidance and inspiration for the future.
• Take an objective look at what’s working and what’s not. Specifically, figure out what your limitations are and formulate a plan for dealing with them. For me, I delegate the tasks that I’m not great at. Instead of spending valuable time trying to improve in a particular area, I assign those jobs to people who are skilled at them. It just makes more sense for me to focus on the things that I excel at, rather than struggle through things I don’t.
• Double down on the things that are working. While you’re pondering your limitations, reflect on what has worked well for you - even if it wasn’t part of your original plan. Let’s say you’ve always focused your efforts on Class C properties, but this year you decided to add a B property as well, and it’s proven very profitable. Well, add another one. If something has been working, double your efforts to do more of it.
• Plan to do at at least one networking activity per day. That may seem like a lot, especially for those of you who don’t prioritize networking, but I’m not saying you have to attend a seminar or some other equally time-consuming event. Even just sending an email to another investor or a lender qualifies as networking, so take a few minutes each day to do it.
• Don’t skimp on the administrative stuff. This is often one of the least-liked parts of running a business, but it’s also one of the more important elements. Taking care of the day-to-day duties, like paying invoices and filing paperwork, is just something you gotta do. My advice? Notch out a chunk of time each day to handle administrative tasks, limit distractions during this time, and just get them done. If you neglect this part of your investment business, you’ll spend much more time clawing your way out of that hole in the end.

Your real estate investments ARE a business. You’re making money off of them, right? So treat it like one! Use these business management tips to put you on the path for a more profitable new year.