Hiring? Here are Some Things to Consider.
The following is adapted from Best In Class by Kyle Mitchell & Gary Lipsky.
“Alone we can do so little; together we can do so much.”
— Helen Keller
The first thing you need to do to become a successful asset manager is build a team. It is impossible for you to do everything on your own and be an expert on all those things. Even if you are not interested in scaling, you need to rely on others, either within your organization or outside of it, to do the job. Building a team helped one of our friends, Tim Bratz, triple his income and put him on a path to acquire the 4,000-plus doors he owns today. Hiring an assistant freed up his time and allowed him to focus on his strengths. Does tripling your income sound good to you?
Building a team does not happen overnight. It takes many months and even years of developing strong relationships, building trust, and cultivating good communication. In in our book, we explore the components of a good team, both internally and externally; how to hire effectively; best management practices; and much more.
Components of a Good Team
Putting an internal team in place can be a daunting task, and when I say “internal,” I mean specifically those that work for your company. Who do you hire? What roles need to be filled immediately? How do you decide?
The answers to these questions depend largely on you. There is no “definitive must” first hire. Instead, you must create your team based on your strengths and weaknesses. When you start to build your team, list all the things you are best at and where you need the most help. Then select the roles that compensate for your failings, and hire accordingly. If you focus on your strengths and hire for your weaknesses, your company will grow tenfold.
Be honest with yourself when creating this list. This is not something you can create rapid fire, unless you really know yourself. Take your time, and be thorough. No one can excel at everything — that is why it is always a good idea to surround yourself with people smarter than you. Are you an introvert who prefers sitting behind a desk and doing analysis? Or do you like shaking hands and talking to people over coffee? Are you an idea person or an implementor?
Also think in terms of the highest and best uses of your time. What use of your time creates the biggest impact on your business? What are the key revenue generators? That’s where you want your focus to be. It is hard to concentrate and excel when you have too many things on your plate. Trust us, we have tried — and we are still pushing ourselves to outsource more. Your productivity will skyrocket when you can focus on a few things you do well and outsource the rest to your team.
You should also hire for where you are going, not where you are today. Wayne Gretzky has said he would skate to where the puck was going, not where it is. The same is true for business. What got you here will not get you where you are going. So think big. Where do you want your business to go? What skill sets will help you accomplish your goals? Look for a team that can make your vision a reality.
Right People in the Right Seats
In asset management, it is important to be intentional with everything you do — and that includes who you hire. Do you want to build a world-class organization? That does not happen without a lot of thought. A bad hire can really set you back, while a great hire can provide rocket fuel for your business. It’s important to get it right.
A crucial part of hiring correctly is choosing the right people for the right seats. What we mean by this is you do not want a creative type handling your accounting or an analytic type in charge of communications. Some companies like to test potential employees to see where they’d be a good fit, and we definitely recommend it. It does not cost a lot of money, and it can save you a ton down the road.
Obstacles to Team Building
Despite the obvious benefits of building a team, we’ve found that several asset managers don’t take the plunge. One big obstacle to hiring a team is money. Perhaps you are thinking, “Gary and Kyle, I do not have enough money to pay someone.” We get it; we have been there ourselves. Try to team up with someone who has a different skill set. This is an effective way of establishing the benefits of a team without hiring. Or you could pay someone an incentive-based pay and share in the profits. There are always solutions, and as a successful asset manager, you must have that mindset.
Also remember we are not saying go out and hire a whole team suddenly. You must manage your cash flow, or it will sink you. I have seen far too many businesses get too far ahead of themselves. Like anything, moderation is key. Test, tweak, improve. Test, tweak, improve.
As we mentioned, building a team takes time. You must be patient.
To learn more about building a strong team, Best In Class can be found on Amazon.
Kyle Mitchell and Gary Lipsky are the managing partners of APT Capital Group, offering busy people the chance to invest in real estate with experts who are aligned with their goals.
They are the co-founders of the Asset Management Summit and Asset Management Mastery as well as co-hosts of the popular podcast Asset Management Mastery, providing key insights to keep you safe on your journey to financial freedom. Their educational programs have been viewed by thousands.
Together, they have over fifty years of combined management and operations experience and have tens of millions of dollars in assets under management (AUM). You can find them online at aptcapitalgroup.com.
