Month: September 2019

This week brings a close to the 3rd quarter of the year, and makes way for the final 90 day sprint. How are you tracking on the big goals you set at the beginning of this year?

 

Wherever you stand with your property goals, you can still win in Q4! 

 

All games in the sporting field and in business typically come down to the final push. That’s when the deadline of the final whistle causes most points to be scored, and it’s when the retail industry make the majority of annual salesThis is our last 90 day cycle of the year, so lets make it count. Inside each 90 day cycle we have multiple smaller cycles – monthly, weekly, daily and then hourly time block cycles. You get to decide what goes in them to access the highest leveraged version of you.

 

To help get you fired up for the last quarter, I’m borrowing a page out of this week’s ‘finish strong’ messages from Darren Hardy- here’s a quick summary of three Olympic finishes he referenced to inspire our final push for the year.

 

#1- The example of Billie Mills, who in the 1964 Olympic 10K race, emerged from behind the front 2 runners to win Gold in the final stretch. He had never run the 10K in under 29 minutes while the race leader held a world record of 28.15. His winning time of 28:24.4 was almost 50 seconds faster than he had run before and set a new Olympic record for the event. He was the first American to with the 10K and remains the only one still. 

 

[Message – even at the end of a tiring year long race, you can still draw the strength to finish strong with a sprint to the finish line.]

 

#2 There’s nobody better at finishing a race stronger or harder than Michael Phelps, winner of 23 Olympic Gold Medals. To reach his target of 8 Gold Medals at the 2008 Beijing Olympics it was all down to his final race, the 100m Butterfly. In that race Phelps won by just ONE-HUNDREDTH of a second over Serbia’s Milorad Cavic.

 

Post race he admitted that his winning margin of one-hundredth of a second was almost impossible to see, but it was because of…ONE SMALL DIFFERENCE.

 

“On the final stroke Cavic lifted his head up just slightly which acted as a mini speed bump and I kept my head down streamlined.”

 

[Message – Small stuff matters a lot! Do all the little things right as all the slight edges add up. Keep your head down, stay focused and streamlined on your goal right to the finish line.]

 

#3 The example of GB Athlete Derek Redmond who, at the 1992 Olympic Games in Barcelona,  tore his hamstring in the 400 metres semi-final. Having collapsed to the ground in agony, he courageously picked himself up to try limping to the finish. With assistance from his father, and against the wishes of Olympic officials, he managed to complete the full lap of the track as the crowd gave him a standing ovation.

 

[Message: Sometimes we need the strong shoulder of someone else to finish, don’t be afraid to ask for support or accept help. You may also need to wave off the naysayers who try to stop you doing it your way.]

 

These sporting examples that Darren had picked out served as the perfect analogy for different circumstances we might find ourselves in with our business goals in the final stretch. They certainly helped stoke the fires under my proverbial behind and I hope it does the same for you. 

 

To finish, here are some closing words borrowed from the man Darren, 

 

“How strong we finish 2019 will determine how fast we start 2020, and the momentum will carry us far ahead”.

 

Who’s committed to finishing the year strong?

How lucky were we to get the sun this week? To be sitting outside at 6pm in the sun, in Scotland, with a G&T on 21st September is remarkable (yes the pic attached is from drinks in our garden on Saturday).

 

The G&T was a reward after cutting the grass in the heat, however during the grass cutting I was absorbed in a podcast interview hosted by Joe Polish, founder of Genius Network (a mastermind group of top entrepreneurs and marketers). 

 

The interview was with Tony Robbins and Dean Graziosi and the subject matter was what it takes to launch, grow and scale a business in a sustainable way.  There were some key messages that stood out for me:

 

• Don’t fall in love with your product or service, fall in love with your customer
• Understanding the psychology necessary to wage the battle that is growing a business
• The two key ways to grow a business – Innovation and Marketing

 

Did you know that a staggering 96% of businesses will fail over a 10-year period of time? That was an alarming stat that Tony shared. 

 

Being a Serviced Accommodation business owner in our third year, we have already closed down the first iteration of our SA business (I shared those lessons in a previous post). The second iteration has been significantly more successful however it’s so important that we don’t let ourselves become complacent. We’ve slipped into that mode before and had to work hard to get momentum back. So, listening to this interview about growth and sustainability I was naturally running the ideas through the filter or our SA business, in so far as how could the principles apply to us. 

 

REFRAMING INNOVATION

From that list I shared above it was the reframe around innovation that really jumped out at me.

 

It is probably fair to say that when we think of innovation it conjures up images of introducing new technologies and things like that. But Tony and Dean were encouraging us to look at it from a different perspective, to think differently. And the key behind all of this is to get to know more about your customers than they potentially even know about themselves. It’s about figuring out how can you add more value in your market place than anyone else, and do this consistently over time. These things can’t be a one off or a quick fix.

 

I think in the SA space it can be easy to focus on our product ie a beautifully dressed property, or the fact it might be in a prime location. Those factors of course play a massive role in the success of an SA business, but its when the seasons change that we can get caught out. Anyone can make money in the summer months, when demand for accommodation is always high. But what happens when demand drops off along with the temperature? The differentiator is finding and understanding; who is ideal customer, what do they want most, what do they fear most, what annoys them most about XYZ product or service?

 

Then upon learning all this, what is your irresistible offer?

 

I’m focusing in on SA examples here but these principles of continuous innovation in order to deliver more value apply across all property businesses (and any business for that matter).

 

To get more answers we need to get new voices around us and ask more questions. In other words, speak to more customers and ask more questions – if we want better answers we have to ask better questions.  

 

Below are some simple examples of small innovations we’ve introduced in our SA business over the last couple of years. These are merely scratching the surface but they each contribute to the overall result of satisfied guests and repeat bookings. We ask, we observe, we listen and we respond, but there is always more we can do. We just need to be intentional about asking good questions, especially as winter is coming. 

 

Some simple examples of what we’ve introduced:

-providing oversized stock pots in each contractor property for the hearty soup/goulash dishes that we found they like to cook

-adjusting the timing of weekly cleans where needed to accommodate guys working night shifts

-changing our invoice periods to help help make client’s accounting life easier

-introducing an e-sign tool for clients to sign our booking agreements and terms of hire on the move, instead of having to print, sign and scan back

-within economic and logistic reason anything to make doing business with us as easy as possible

 

Whilst we can’t help but feel like it’s been summer this last week, the reality is that winter is coming, and in more than one sense of the word. Seasonally, the colder months and the reduced tourism travel will be upon us soon. Economically, there are four seasons too and many commentators would also say that a period of winter is coming, a major correction in financial and property markets. We don’t know exactly when, but when it does happen, here’s what Tony said, ‘businesses will freak out and cut back on marketing, they’ll cut back on added value to the market place, they’ll cut back on everything, and that will be your greatest opportunity if you are MADE FOR WINTER”. “61% of the fortune 1000 companies in the US were born in the ‘winter’, ie in a depression or a recession (eg Disney, Fedex, Pizza Hut). If we can do well in the tough times we will dominate when the economics change.”

 

Get good now and be ‘ready for winter’ is the big message. This is what really resonated and will be a philosophy we carry forwards in all of our businesses, especially our SA business- that we can be innovative and be winter ready. It all comes back to these points of understanding how to serve your ideal customer, adding more value into the market place than anyone else and committing to innovation. 

 

So, what can you do to be ‘winter ready’ in your property business?

This post is a one-two punch highlighting two critical factors for success (and enjoyment of the journey) that we were discussing in our recent mastermind sessions. Punch one is at the high level, to do with your big picture focus. Punch two is at the day to day level, to do with your habits. 

PUNCH #1: Gaining Clarity

What is your vision for what you want to be/do/have in 3-5 years? These will likely be the more tangible things that you can dream up in your mind and visualise ie the house, the family lifestyle, the business, the bank balance, the material things…The bit that requires some real brainwork however is to get clarity on WHY you are doing it. There is so much truth in the quote, “if your why is big enough you will figure out the how’. That quote has been attributed to many different people I don’t know who actually said it but regardless, please take it on board, because it’s true. 

 

Having clarity on what you want for your life will give you a filter through which to decide what you give your attention to. It will prevent overwhelm and distraction because here’s the thing that we all know but often forget – everything you say ‘YES’ to will force you to say ‘NO’ to something else. So if you say yes to a 9am informal meeting, you are saying no to your first head down focus session working on a priority project.

 

For me, a step change in my clarity came from reading the book ‘The Values Factor’ and spending a full weekend with the author Dr John Demartini. That experience several years ago helped me identify my highest values. The wonderful thing about understanding your highest values is that once you do, it enables you to tune into them and live in alignment with them. If that sounds a little abstract, don’t worry it’s actually quite a simple concept, I recommend you at least start with reading the book, audible is easier, and take it from there. In the meantime though, here’s something very straight forward you can get started with now if you are interested in gaining more clarity.

 

This is a simple little framework to help you think through and craft your vision and give you more clarity, it will essentially be your definition of success. 

 

*WHAT do you want to be doing?

*WITH WHO?

*HOW do you want to be doing it?

*FOR WHOM do you want to be doing it, ie serving who?

 

Being really clear on what we really want gives us the inner strength and confidence to protect that want.

PUNCH #2: Morning Routine

I’m guessing that most people have heard about or currently have a morning routine.

You may wonder, ‘Why have a morning routine?’ Again you need to start with some clarity..

Why start with why? Well, put simply, if you don’t know why something is important then it is unlikely you will be compelled to do the hard work necessary to change your behaviours. 

 

If you are in any doubt about why have a morning routine, here are 4 big reasons I borrowed from Darren Hardy:

 

#1 Having a predictable morning routine grounds and stabilises you

• You want to be operating from your best self, not your reactionary self and this routine quiets the mind from the fight, flight or freeze reactions that can come from yourself up to  phones alerts or email first thing.
• Give yourself the gift of at least the first hour of the day without the phone on.

 

#2 The morning is when your brain is scientifically proven to be at its best

• The circadian rhythm of cognitive strength and will power is at its best first thing in the morning, and most vulnerable at night.

 

#3 The way you start almost anything is the way you finish it 

• You want to train yourself to start the day strong and give yourself a competitive advantage to also finish the day strong, because you feel a sense of accomplishment rather than spending the day on back foot reactionary mode.

 

#4 Too much of society has become soft 

• We are losing our grit and discipline in favour of distraction, entertainment and escapism.

• It’s not easy to get up early and stick to a morning routine, but if we don’t put in the hard work we’ll continue to have a hard life.
• Sticking to a morning routine re-asserts your discipline, in fact it makes discipline easy by automating it into a habit. 

 

I’ll wrap this up with a wonderful quote from Darren about the morning routine, 

 

“It gives you a foundation to build your dream, and the stronger, wider and more solid that foundation, the higher and mightier your dreams can be.”

 

If you’re looking for guidance on how to structure your morning routine, the book of choice would be ‘The Miracle Morning’ by Hal Elrod. 

 

The great thing about a morning routine is that it really doesn’t matter what is in it, only that you have one. You don’t need to be prescriptive and try to fit into exactly what someone else does, don’t get hung up on what a superstar celebrity does. Instead, take inspiration from what you read and figure out what works for you. Most importantly keep it simple so that it’s something you will do every day without fail. 

 

Who’s committed to gaining clarity and implementing a morning routine?

So often we hear that ‘your network is your net worth’, and time after time this is proven to be the case. Jim Rohn famously said that ‘we are the average of the five people we spend the most time with’. So how much time are you willing to invest in your network? A few hours a month? A day here and there? With that kind of contact, what kind of rapport and relationships are you able to create with people. The answer will likely be that you can create a base level of rapport, find some shared interests, exchange some useful information, maybe a little more. You will certainly be adding people to your network but will they make it to your inner circle. Will those environments and encounters create the kind of conditions where those deeper connections can be made?

 

Now, what happens when you take a group of ambitious and dedicated people to a beautiful location for a week (ie the Italian Lakes) with a specific purpose? Seven days in an inspiring location with dedicated and supportive people. That’s when amazing things can happen. That’s when you have people moving towards the next best version of themselves and accessing new levels. We’re talking another level of:

*thinking and ideas

*belief (in yourself and in what is possible)

*friendship (the inner circle kind)

*support (the kind to see you through any situation)

 

And putting these elements together – physically, mentally and emotionally, these are the kind of experiences that lead to:

*levelling up (and raising your bar of ‘normal’)

*massive action

*new found momentum

*new joint ventures

*lifelong friendships

*trajectory changing for the better

 

This week we have collectively immersed ourselves in learning, action taking, comfort zone stretching, and a healthy dose of fun [meals, drinks, F1 Grand Prix].  There have been transformations in each and everyone present as we transition from consuming mode to creating mode. So much has been created this week, that will be of massive value to others, because we ignited the four key ingredients of productivity –

#1 SETTING SPECIFIC GOALS 

#2 MEASUREMENT OF PROGRESS

#3 THE POWER OF DEADLINES

#4 MASSIVE ACCOUNTABILITY

Since we become like the people that we (choose to) expose ourselves to, it makes sense that we can accelerate our personal growth in whatever direction we desire by spending time with people who already are living out parts of who you want to become.

 

In what part of your life do you want to ‘level up’ and how are you investing in your network to do that?

Strange headline for a blog post you may think, but it is a genuine question. A book idea that I believe would carry a lot of value to others, is about the concept of more predictable property investing. In other words, how can an investor remove as much guesswork as possible from a property deal, and replace that with more predictability of a positive outcome. What would that mean for your investment decisions, your deal selection, your profits, your sanity, your ability to secure JV partners?

 

Here’s a small snippet of how this approach applies to a real property scenario for us. Last year I shared a blog post called ‘START-UP LESSONS FROM A CITY CENTRE RENT-TO-RENT SA BUSINESS’, which highlighted key learns from our first foray into serviced accommodation. Chris and I have had 2 iterations in our SA business. The first took the naive approach of ‘build it and they will come’ (have you seen Field of Dreams?). 

 

We set up an expensive R2R SA business in Edinburgh city centre thinking ‘we can’t go wrong because its our capital city, it’s the UK’s second largest Financial Services centre in the UK, we have year long toursim, blah blah blah’. We essentially set up 4 units in quick succession, threw up listings on the online travel agent sites (OTA’s) and hoped for the best. 

 

Was that clever?

 

We quickly realised it wasn’t as easy as that. Whilst any newbie can make money in the summer, those properties limped along for 2 yrs and we closed them down in Q3 of 2018. 

 

Iteration 2 was a completely different story, like night and day. This time we applied an approach I learned from software entrepreneurs – to first go out and find the pain point in the market to solve- in other words find the specific audience demand to serve. I made it my mission to find a problem that we could help solve with accommodation and get as close to pre-selling the solution as possible ie taking an advance order. If I write the book I can go into the specific detail detail but for the purposes of keeping this post short, I secured a demand in advance of having the property. In other words a contracting company that needed accommodation for about 5 months for 6 guys, plus the promise of more to come if I could deliver. 

So here I was with a pre-order for a serviced accommodation property, if I could come up with the goods in a set time frame, then we would have the business. 

 

See the difference in the business model? Version 1- throw a property up and hope for the best vs Version 2- A corporate client ready to pay us for a 5 month booking, all we have to do is deliver the property. Do you think we bent over backwards to deliver on that? You bet we did. 

 

Delivering on this new type of business model, and further validating the demand, led to us expanding with confidence that year as we rolled out a further 9 more properties serving the same audience. 

 

Looking back and connecting the dots I can see where this approach has served been and at play and where it hasn’t, and the outcomes are vastly different. For example, the first investment property I bought in 2007 because it LOOKED CHEAP. The poorest performer in my portfolio by far, and it’s because I wasn’t applying the investing approach then that we have developed over the years.

 

Now moving forwards, all of the deals Chris and I seek out, look at, and analyse are derived from this approach and have to satisfy enough of the predictable criteria for us to commit. And we’re not just talking serviced accommodation, we apply this investment approach to all nature of deals, especially where a large chunk of our time is spent now – diversifying into development and commercial deals. In fact, this approach is even more important when moving into a newer strategy where your experience hasn’t yet revealed the major patterns and learns.

 

So that’s the concept I learned from mentors in starting a software business back in 2014 and eventually started to weave into our approach to property investing from the end of 2016. Start with the end user need/problem to solve, validate the solution by getting commitment from the end user, then go ahead and deliver it.

 

Having invested with and without this formula, we feel it’s such a powerful approach that there’s huge merit in sharing it. To help others de-risk property deals and invest with confidence. That’s the conversation going on in my own head at least, hence the reason for asking you wonderful people – would you buy a book about this?

 

I’d be excited to write about not just our experiences but also want to report on other examples where savvy investors have taken a similar approach to their property investing. My thinking is that drawing out these lessons and articulating them into steps that others can implement could have a massively positive impact on others by accelerating their learning curve. 

So in closing, would you buy a book creating more predictable property deals?

And if so, what would you want to get from reading it?

 

Thank you so much for taking the time to read and reply