Choose a Product that has a Market Appetite Building a business is all about providing a solution to someone ’ s problems or challenges . There are many problems or challenges in the real estate sector that need to be solved , which means you can start many different businesses in the real estate sector .
A few Different Sub-categories in the Real Estate Space are :
• Construction
• Property Administration
• Property Analysis
• Property Auctions
• Property Coaching
• Property Construction
• Property Education
• Property Events
• Property Financing
• Property Funding
• Property Inspections
• Property Insurance
• Property Internet of Things ( IoT )
• Property Investment Acquisitions
• Property Investment
• Property Maintenance
• Property Management
• Property Marketing and Advertising
• Property Sales
• Property Technology ( PropTech )
Think Big , Start Small It ’ s important that you have a big vision for your business . Start a business where the vision you have of what this business can become is so big that it scares you ! Small businesses don ’ t last , at least not if the intention from day one is to keep it small .
However , once you have created a big vision for your business , start small . When I first started my business , my one friend asked me , “ What are you going to do today to make R100 ?”. At first , I thought I hadn ’ t understood his question , but he meant exactly what he asked . Before you can make R1 000 , R10 000 , R100 000 or R1 million a day , you need to be able to make R100 a day and then grow that .
Keep Fixed Expenses to a Minimum A lean and mean business is always the best approach when possible . Keep fixed expenses as low as possible . Don ’ t rent premises if it is not absolutely necessary . Don ’ t appoint staff if it is not necessary . Rent and salaries are usually your two highest fixed expenses that are the most difficult to reduce in tough times .
You can replace rental expenses by starting in your garage , spare bedroom , or a co-working office . Your team can also work remotely until it becomes necessary for them to work in an office environment .
Reduce salaries by doing as much as possible yourself and then outsource as many functions to external service providers as possible - ( Not usually good business advice , but good to start and understand your business ).
SA Real Estate Investor Magazine AUG 2021 25