Imagine being able to write this letter to your prospective buyers!
(Our example below is of a real estate firm)
Dear Prospective Purchaser,
When we started this business we wanted it to be an investment not just a job. We wanted it to grow in value as you would expect any investment would, we wanted the growth to reflect a fair appreciation of the dollar amount that we have invested plus an amount that would reflect the risk involved. Not to mention normal wages if we were also employed in the business.
In order for that to happen we realised that it had to be an entity in its own right, it had to function separately from ourselves. We didn’t want it to rely on personalities, as they may come and go. Instead we wanted it to succeed based on a structured format.
In essence we have viewed ourselves as shareholders of (xyz real estate).
Our first step in creating ( xyz real estate ) was to look at what we would have to achieve in order to be successful.
In other words
“What do we need to be competent at (good at) to be successful in this type of business”
Much of this information was gained from looking at successful businesses both locally and elsewhere to form a picture of what makes these businesses stand out.
Our conclusions led us to believe that the following broad areas are the ones that should demand our utmost attention. Some are unique to our industry others like Accounting, Financial Management and Staff Management are common to many industries. Whilst these are not unique to our industry, management of these we consider crucial to our success.
- PROPERTY MANAGEMENT
- STAFF MANAGEMENT
- FINANCIAL MANAGEMENT
- Gaining New Business
- Property Marketing
- Gaining new business
- Arrears Control
- Correct Paperwork
To ensure that we didn’t just pay lip service to these needs we created roles within the business that would be accountable for each of the key areas.
|Gaining new business||Salesperson|
|Property Marketing||Marketing Secretary|
|PROPERTY MANAGEMENT||Property Manager|
|Gaining new business||Rental Clerk|
|Arrears Control||Rental Clerk|
A job description was written for each role which clearly defined the duties and responsibilities.
Overall we found that we had (30) roles to fill and only (7) staff to fill them but this is not a problem as we find that one staff member can have multiple roles and as the business gets larger additional staff can be employed to wear the burden. So in reality as the business grows the roles don’t change its just the people who are doing them.
As in the above example, when the business gets larger it may mean that becomes a full time Sales Manager and we employ a new person to take on the role of a Salesperson.
|STAFF MEMBER||ACCOUNTABLE ROLE|
“This is how we do business”
- What do we need to do ?
- How do we do it ?
- When do we do it ? and
- Which role will be doing it ?
|Key Business Area||Policies & Procedures||How we do it||When we do it||Which Role?|
|Prospecting||Door to door||see manual||Ongoing||Salesperson|
|Sales||Sales process||see manual||Ongoing||Salesperson|
|Appraisals||Appraisal process||see manual||Ongoing||Salesperson|
|Auctions||Auctions process||see manual||Ongoing||Auctioneer|
|Open for inspections||Conducting open for inspections||see manual||Weekly||Salesperson|
|Arrears Control||Arrears process||see manual||Daily||Property Manager|
|Leasing||Leasing & marketing||see manual||Daily||Rental clerk|
|New Business||Prospecting methods||see manual||Ongoing||Rental clerk|
|Maintenance||Handling maintenance issues||see manual||Weekly||Salesperson|
By doing this eventually we had created a policies and procedure manual which would become the structure and format of our business.