Why do some property management departments maintain a steady flow of new clients, yet others don’t?
Over the last 6 years, I have shared many tactics and strategies that work for business development managers. It’s a role many have either attempted, simply not considered or have found difficult to manage.
When we look at successful property management agencies, there is typically a primary ‘sales’ person. This person’s role is purely to create new sales channels and be responsible for bringing in new business through developing strategic relationships with a wide range of companies, sectors and professionals. Their time is split between business development and seeing clients. The term ‘business development’ means the act of participating in actions that will help grow the business. I believe it is a role that, with the right guidance, will fast track your rent roll growth journey.
So, what does this role entail?
First, let’s look at why so many Principals don’t actively engage in a ‘business development manager’?
The following answers may surprise you:
- I don’t have time to find and manage a BDM.
- I pay my property managers to do this. That is their job.
- We get all our new clients through existing clients.
- We have been a long-standing business in the area.
- I have tried to fill this role in the past and it has never worked out.
When we look at property management departments that are succeeding in growth, a large portion have an active BDM. Whether your agency is small, medium or large, I would suggest that everyone within the company needs to have a BDM driven personality.
Before hiring a BDM, I would recommend you have a strategy and ask yourself:
What is the aim of your BDM?
What do you want to achieve?
What is your message?
7 Benefits of a BDM
There are countless benefits to having a BDM in your business.
These are the top 7:
- Makes the business more visible in the community
- To grow a property management business, you need a strong sales pipeline and a steady flow of clients. If noone is talking about or representing your business, you risk the chance of being invisible.
- Helps create a reputation for the business
- Relying solely on existing clients to represent your brand and business limits your potential growth.
- Informs others that you are open to introductions [new clients]
- Believe it or not, not everyone knows you want more business. 80 per cent of people don’t even know that businesses want more business!
- Expands your networks (build referral pods)
The more people you know, the more opportunities you have to provide advice to more people. Don’t put all your eggs in one basket!
Expands your thinking by being a continual learner
A curious person can only broaden your horizon of thought which can lead to new opportunities you may never even thought about.
Starts to position you as an industry leader/specialist
Business development is a great way to share your vision, share your insights and experience in this great career.
Leads to increased revenue and more value
Developing business opportunities with other businesses, for example, local businesses in your area or large corporations can only lead to increased revenue.
7 Tactics you can implement
Here are 7 BDM activities for you to consider:
- Attend ‘outside’ industry events (an event where you won’t meet other real estate professionals). Attend at least one new event each month.
- Focus on other organisations where your target client works. Propose some educational seminars/workshops that you could hold to bring their employees up to speed with all things financially related to them.
- Use content marketing to create your reputation and visibility. Commit, share and build your online audience.
- Consider developing professional groups where other professionals come and network – this can be online or offline.
- Develop a CRM (Customer Relationship Manager) to stay top of mind with all strategic business partners.
- Develop some key sponsorship relationships that support your brand value and attend the events.
- Participate in some market research – look at partnering with another organisation to complete it. Develop the research paper and attend presentations where you talk about the findings.
In my mind, having a BDM should indisputably be part of your overall growth strategy. The question is are you ready to take one on in your business?