Why Most Real Estate Investment Businesses Don’t Work and What to Do About it
We have four core values which drive our real estate investment company, one of them is to never stop learning. We exercise this key principle by assigning our teammates a new book to read each quarter of the year, we then review the book collectively and implement one lesson that we learned from the reading. We recently re-read a powerful book and we would like to share profound concepts that revolutionized the way we operate our enterprise.
The book is called the E-Myth Real Estate Investor: Why most Real Estate Investment Business Don’t Work and What to Do About it
The single most profound reason why most real estate investment business don’t work is because they lack systems and processes. If you are looking to grow and turn your small business into an enterprise, we highly recommend you implement systems and processes into your organization.
“You leave home to seek your fortune and, when you get it, you go home and share it with your family.” -Anita Baker
Very often, ambitious individuals get what we call entrepreneurial seizures. Here is an example: Anthony is working really hard in a deli, after countless hours working for his boss, Anthony begins to think “why am I working for someone else when I could go into business for myself?” like most small business owners and entrepreneurs do. Anthony made the mistake of thinking that all he needed to do was to get an education on the mechanics of making a sandwich instead of building a successful business model that would allow him to remove himself from the daily operations. Unless Anthony adopts systems and processes into his new deli, he will work in his deli for the rest of his life — in fact, Anthony created himself a job instead of financial freedom and the lifestyle that comes with a successful business.
Systems and Processes
We knew that in order to become more profitable we had to become more efficient with the time we were spending working in the business and we had to create systems in order to do this — to name a few, Short Sale, Re-Development and Marketing are departments we created which all follow systems that could be applicable by anyone if trained properly. Our goal was to avoid this from happening to our business and created positions and departments to handle different aspects of the business so that we could begin to remove ourselves from the day-to-day work.
Working Smarter not Harder
Systems will allow us to scale and build a business in which someone new to real estate investing can be hired and trained very quickly to take responsibility in important parts of our business. This principal is the central message of the E-Myth philosophy and has been the driving force to the growth of thousands of business. Without systems you are always working harder, because every time you take on an activity in your investment business, there is no road map to complete which leads to continual work IN your business and never working ON your business.
To conclude, we want to remind you that you only have one life to live so dare to dream and believe that anything is possible so long as you never stop learning. Educate yourself on information that will save you sweat equity. A company can be much more than what most become and nothing is preventing them from becoming all that it can be. It only takes desire and perseverance to see it through.