Commercial real estate is an industry with inherent complications. Each product is unique, with its own strengths and weaknesses, and every deal requires multiple contributors -- builders, agents, brokers, lenders, and buyers and more. Of course, this is all before government obstacles such as permits and taxes. Keeping this in mind, here are four ways to improve your profits by simplifying your processes.
One trap that many organizations fall into is letting each unit report their metrics in their own way. This is confusing and makes reporting less effective. For instance, if your hotel group reports occupancy rate and your office group reports vacancy rate, it is difficult to understand the differences at a glance. This can lead to misappropriation of capital and lost opportunities.
Gather representatives of each division together and agree upon a standard set of metrics. A resource manager such as RealNex Core CRM can automate this process, saving time and effort.
Simplifying communications is a surefire way to increase efficiency. With each new app and gadget, communication becomes increasingly fractured. On any given day, you can communicate by phone, text message, email, and instant messenger. With so many communication options, it can be hard to keep track of important information. Messages can be lost and opportunities missed. Implementing a unified messaging system can simplify your communications. Integrating messaging (think mobile app) into your CRM can simplify communications, decrease lost productivity, and increase profits.
There are two obvious considerations when standardizing processes within commercial real estate. First, every deal is different. Secondly, every employee is different. Ideally, processes should be standardized, documented, reviewed regularly, and used religiously. Best practices need to be developed to simplify workflows, increase employee efficiency, and streamline managerial oversight. If each employee performs key tasks in the same way, tools can be optimized to facilitate these processes. Reporting becomes regular and accurate. Expectations are managed, and any trained employee can take over the process seamlessly in case of absence or vacation. Make this standardization a top priority.
Once standardized processes are implemented, develop a checklist to complete important tasks. Checklists are useful to ensure that details are not overlooked and each process is completed in sequence. A completed checklist simplifies management review by collecting all the pertinent data in one place and can eliminate many last-minute, complicating factors.
In organizing or simplifying, sometimes things have to get worse before they get better. Take time to evaluate these four areas within your business and make the necessary adjustments. Need additional help? Sit in on one of demos and we'll get you organized in no time!