The Means of Scaling Up Real Estate Business

According to Robert Kiyosaki’s cash flow quadrant, we have four modules in the business world. On one hand, we have the employee (E) and the job owner (S) while on the other we have the business owner (B) and the investor (I). Employees are the people who work for others or other people’s businesses while job owners are those people who work for themselves but essentially does all the work. This includes plumbers, mechanics, and electricians. For business owners and investors, they don’t need to do the job for themselves. Their investments bring revenues on their own. Simply put, they trade time for money.

In the case of the real estate industry, it’s, however, to categorize the property owners as for whether the business owner, owner of the job or investor. This is so because much of the day-to-day work is done by the investor him/herself. Although for those who buy and hold real estate can be categorized as investors.

For one to grow their business from one level to the next, one has to take the concept of scaling more keenly. Scaling is what is needed for one to move from being a job owner to a business owner. There are a few steps to scaling up your real estate empire.


Delegation is the transfer of responsibility to another person or entity. In real estate, one can delegate to other third party property management companies. Hiring is part of the delegation. As businesses grow, the owner needs to hire other people and delegate less important tasks to as well as the tasks they are not well familiar with. However, one has to be very careful not to delegate too soon.

Before delegating, keep tab of various tasks for at least a week and evaluate which tasks are important and worthy delegating and which ones are not. Also, do a brainstorming exercise to enable you to determine which tasks are crucial which you can take charge of, and those who are not very crucial and can be offloaded to a subordinate. This is about Pareto’s Principle whereby 80% of profits or results are derived from 20% of the activities.

Evaluation/Key Performance Indicators (KPIs)

Always measure the performance of the employees or any third party you are working with. Good evaluation entails involving the employee or entity to be evaluated to avoid creating the feeling that the evaluation is unfair. When employees are well involved in the measurement process, they will own it and work towards the achievement of the set goals. Setting goals in the organization are important in that it enables the owner to measure employee at the same level against each other and measure improvement. Real estate investors use various KPIs to measure different jobs.

Division of Work

As the business grows, the owner needs to separate different tasks and jobs to avoid arbitrariness. With clear job description, it is easier to measure performance and set goals. Different tasks have different KPIs, and hence it is essential to split different tasks and categorize them. Those tasks that rhyme should be categorized together and have their goals. This will help them focus on achieving those goals instead of doing arbitrary work.

Working on your the Business

Being the owner of the business one has to work on the business rather than in the business. This means that the owner should carry out the most important tasks such as brainstorming, networking, strategizing, and hiring and firing. Most importantly the business owner should focus on finding good deals for the business.