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