One of the most overlooked parts of real estate investing is ensuring business continuity. Most investors get used to being in a rush to find more deals and grow and forget to take time out to plan for the future and protect what they?ve got.
This is what often separates the big winners from those who end up searching for a new job, often overnight when the unexpected does happen.
The Most Important Factor in Business Continuity Planning
What is one of the most significant elements yet also likely the most overlooked when it comes to ensuring business continuity?
Look at what has happened to other hugely successful companies or the biggest worries about the futures of some of the current ones. Look at the chaos when Steve Jobs passed on. What has become of Microsoft since Bill Gates left? How many people really bought the new Microsoft Surface tablet? Why is Berkshire Hathaway still so loved?
Yes, it is have a plan for a successor to run your real estate investing business.
Yet according to a new survey from the Urban Land Institute only 48% of real estate companies annually review plans for succession. Just 22% have formal plans for it in place and only 11% think the industry is adequately preparing for succession issues.
Succession planning isn?t just about panning to die. Who does that? Though what if you decide you want an extended break, want to retire early (or at all) or become disabled or even need ot take time off to help family? How will your real estate investing business keep running to provide for your family and who will run it?
Who Will Carry On Your Legacy?
May be you have kids you want to take over but what if they have other plans, aren?t ready or just aren?t qualified?
Owners of real estate investing businesses need to recognize the need to be training a successor and maybe a backup one or two too, now.
This can also be a way to ensure you retain the top talent and allow them to grow with you rather than having them lead and head up the competition.
Those who have been embracing a virtual office structure can still do this with remote employees and managers just as well as with in-house ones.
Not only will getting a head start on this now make it easier it will give others more confidence in your business, increasing the potential of attracting better partners and make the transition smoother for staff and vendors later. In fact this is not an option, it is a must. Without thorough planning and training even a couple weeks of chaos trying to put a successor in place in an emergency can completely destroy a real estate investing business.
August is What Will Be Your Legacy Month, the perfect time to work on this as part of ensuring your legacy. Don?t get caught slipping.
Source: http://reieducationcompany.com/this-is-crucial-for-real-estate-investing-business-continuity/
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