I hope those of you celebrating had a wonderful Thanksgiving and are recovering from all the good food and fun!
Today I want to give you a chance to reflect and think about how you ran your business in 2014. Did you create a job? And by that I mean, are you doing everything in your business? Does your business 100% depend on you? Are you doing all of the labor yourself? For most of us, the answer is yes. Up until fairly recently in my business I was doing everything myself. Sure, I had contractors and realtors, but I was doing all the running around and finding deals and financing by myself. You can never scale a business that way.
If you plan to do the labor yourself, you’ve bought yourself a job. Nothing wrong with that – I’ve done it multiple times. However, it IS a job.
A lot of us want to do real estate investing so we don’t have to have a 9 to 5 job, but if you’re busy enough in real estate and doing everything yourself, all you’ve done is replaced one job for an even harder one. When it’s your business, you can never clock out.
If you don’t want to create a job for yourself, you need to hire out a lot of things. If you want to run a scalable business, learn to budget for others to do the labor. The first thing to outsource is the actual rehab–if you want to do more than 1 or 2 deals a year, you need to hire a general contractor. Next, you might want to hire someone to take care of administrative tasks for you. You could even have someone in house taking care of acquisitions for you. You do that so you can scale.
The ability to scale depends on your ability to create systems and hire the appropriate people. Now, the number of people you hire depends on the size of your business; maybe one or two people will be enough for your business right now. But as your business grows, you will need to hire out more and more things. You have to learn to let go of simple things, and free yourself up to do what you really need to be doing.