What Business Model Do You Choose?

When starting your business, at the core you have 2 distinct business models to choose from.  You can be the low cost, low service provider or you can be higher cost and provide more service &  handholding.  There is room in most markets for both models to succeed.  Many prospects say they want more service but don’t want to pay for it and are lured to the low cost option.  It is easier to sell service at a low price.  However, over time some low price clients may shop and leave you for the new lowest price option.  Or you may have prospects that see the value of paying a bit more to get more.

The low cost model must have lower overhead than high service model to be profitable.

Early on you may want to start off being low cost as you are a sole practitioner looking to grow new customers as quickly as possible.

As your business evolves, you may choose to increase pricing to pay for staff to provide better service.

There are pros and cons of each model that you must research.

Start to formulate what type of business and what type of clients you want to have now – so you can make decisions that support that vision along the way.

Happy Holidays!

 

Published on December 3, 2014 in Property Management

Comments are closed.

Latest Posts
Categories
Archives
Latest Blog Posts
Why Reinvent the Wheel?

If you are looking to start a management business in preparation for the next business down cycle (recession) you came to the right place.  The reason I wrote this book and created this companion website with downloadable forms was a direct result of construction, architects and realtors that wanted to have a recurring income stream.  […]

Want To Be a Property Manager But Don’t Like Accounting? We Have You Covered

People get into property management for many reasons.  There is the recurring income, for some it is working with people, for others it is the ability to get out of the office and help onsite.  But the hang up for some is they don’t like accounting, so what are you to do?   When starting […]

Recession Proof Your Life

The average business cycle is 61 months long going back to 1950.  We are much farther along at 106 months we are in the 2nd longest business recovery in US history.  When recessions come along real estate sales drop and construction activity drops along with related professions and the general economy.  One thing that doesn’t […]

Read the Blog

About the author

Educated at Cornell University. Trained in the United States Army. Russell Munz has taken resources from both of these experiences to benefit you with the documentation included in the Quick Start Property Manager Program. Read more about Russell…

Why this Property Managment Program?

This is a step-by-step guide to becoming a property manager. It walks you through your first 30 days, provides you with checklists, forms, and templates and most of all, shows you how to find clients so you can start earning money fast!

Take a closer look: Front cover | Table of contents | Introduction | Back cover

© 2019 Quick Start Property Manager Program.