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May 13, 2009

Can the Lean Startup apply to property management?

Lots of momentum in the valley around Eric Reis’ Lean Startup.  Though I find his advice particularly valuable to startups, I think there are other applications to the general principles.  If you haven’t seen it, here is his presentation from the Web 2.0 Conference.

Eric Ries Lean Startup Presentation For Web 2.0 Expo

 
In our industry, the traditional methodology of developing and implementing a new idea or service seems to stifle creativity.  At a typical property management group, the risk-profile is perceived to be very high.  Further compounding the problem, traditional mediums are viewed as efficient “enough”.

Though, if all companies, large and small, viewed themselves as a lean startup, experimentation, progress, and eventual value-add to the renter and company might be achieved at greater speeds.

 

Two current hot topics are mobile and social media.  A common hypothesis is that renters want both (Shadow belief #1).  However, traditionally for the a property management group to research, understand, and implement either takes loads of time, resources, and a high degree of dedication.  Consider a few of the lessons from a lean startup.  

 

1)  Deploy new software quickly.  

 

Instead of software, this would be marketing ideas, pricing changes, new referral programs, etc.  With a wide variety of tools to reach consumers, considering trying rapid deployment to a small userbase, measuring impact, and quickly identifying the negative or positive change.  You might discover that a particular property can be marketed well on Facebook, and another one just needs traditional print.   

 

2) Split test the small, measure the large.

I’m not recommending you spend hours a day tracking and measuring leads, but putting some simple processes in place will help you identify which leads are converting from which sources.  Though the general goal is to drive the most leads possible, maybe it should be to drive the most qualified leads possible.  

3)  Reduce total time through the loop.

The general idea is the getting through the feedback loop as quickly as possible.  The faster you are at identifying what renters want or how to interact with renters, the more branding and lead generations opportunities you will have.  

I think a lean startup is about testing a variety of hypotheses, using feedback and data to identify consumers’ needs, and being able to quickly change strategy and iterate again.  This may be a bit of a stretch for property management groups and I know I am oversimplifying things, but I think some lessons can be learned and applied.  What do you think?

3 Responses

  1. Tony Sena says:
    May 23, 2009 at 1:54 PM

    I think the focus needs to be on the Landlords not the renters. It’s easy to find renters once you have properties to market. The key is identifying what Landlords want, how to interact with landlords and where to find them, which will lead to more branding and lead generation opportunities. If you don’t have the inventory, what’s the point of finding renters?

  2. naples property management says:
    May 25, 2009 at 12:33 AM

    Nice article :)

  3. Injessysmoolo says:
    February 18, 2010 at 8:15 PM

    If anyone here truly feels fiat currency is worthless then feel free to give me all your money.

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