Tips for Management Company Executives
by Jim Manning, President
Walters Consulting Group
October 2008 Topic: There is Proffit in Making Goals Happen
by Jim Manning
This Might Be a Great Opportunity To Make Critical Changes!
Put aside old thinking and take a look at some critical facts about our business. There's more work than the industry can handle, recruiting serious newcomers is like searching for the proverbial needle, and other sources of income that are truly marketable to the client base. Let's look at some better ways to build value.
- I've got the Goal! I just wish I had the time to make it happen.
Hey, buck up! You're not alone here. This is the difference between taking risks and taking a walk. Here's a suggestion.
List all the items that take up your time on most work days. (You can do this. We all can do this.) There's no question that, for a few, there's a modest amount of time spent on totally unnecessary items. Now, the rest of us. If someone would follow us for a couple of weeks with a camcorder and a stop watch, we'd cry. The time wasted…well, enough.
Look, as leaders we are probably doing a lot of work that should be done by an employee. Routine things. Maybe even property management tasks, HOA meetings, the phone calls and now the e-mails.
That goal you defined? Ask yourself this, "if I don't make it, how much will it cost?" I'll bet it's plenty compared to the cost of a well directed and competent employee.
The Risk is the investment to reach the goal.
For example: "If I do the right things I can sell my business for another $250,000 in two years. If I have to pay someone $50K per annum and I make it work, I'm up $150K. If I don't try I'm saving $100,000 but my net is a loss of $150,000.
In many of the sub-small management businesses (under $500,000 annually) we've worked with, an investment in a $30,000 employee would have freed up the owner to market and sell more business from the inside and from the outside. The result could even double the volume in a few years. For larger operations it's a matter of economy of scale. Lot's of new volume over less resource allocation. The profit line can rocket.
The risk is stepping away from the comfort of doing what you always do. Now, you have to do those things that challenge you and reward you.
Invest in Your Goal.
Want to take me to task? Visit my new Blog: www.walterscg.com/wordpress
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