Process Depreciation, Your Revenue Ceiling, and a Free Live Event.

Live Event: Building & Automating a New Process

On Tuesday, I am host a live event where I build out (and partially automate) a new process for our company in real time. It's going to be interactive Q&A throughout. If you want to join (it's free, and I won't be selling anything), you can register here. It will be very informal. Registration is limited to the first 25 people to keep it manageable.

The recording will be made available to this mailing list afterward.

More specifically, I plan to recreate our Lease Signing process within LeadSimple Process (we currently use Process Street for this). So I'll be talking through:

• How I think about what the Stages of the process should be

• Building each task

• Using Zapier to make automations and connections.

Combatting Process Depreciation

I can't take credit for this, but my new favorite turn of phrase is "Process Depreciation."

Every process within your business slowly breaks. You need to have a cadence for reviewing/updating the 5-10 most important core processes at your company. Once a month we pick a core process to update. I sit down with everyone who is actually executing the process, and we go through it in detail. Benefits:

• Team feels like management is engaged & cares about the work they do

• Opportunity to take advantage of new automations or software improvements/integrations

• Remove or streamline steps to save valuable team member capacity

• Quality-of-life improvements to make the team happier

• The finished product now exactly matches how things are done "in the real world." Great opportunity to slot in a remote team member to take over some or all of the process. And rest easy knowing that if the existing team member leaves or is promoted, it will be easy to train a new team member since the process is up to date.

The ROI in this activity is simply insane!

Growth Limits of Recurring Revenue Businesses

Own a property management company? Churn, plus 2 other key metrics, literally defines a revenue ceiling for your business. The issue is that since churn scales with the size of your company (in other words, your churn may remain at a constant 4% monthly, but the actual number of customers that represents increases as your company gets larger). It follows naturally that unless you add more and more customers per month, your business will approach a size limit where you’re losing as many customers per month as you’re adding. And customer growth does NOT scale linearly with company size the way churn does, at least not in my experience. You don’t get more customers for free as you get larger unless you have a super-viral startup or something. But you DO lose more customers “for free” as you get larger.

The number of clients who churn out of your company annually puts a hard cap on how large you can get.

In the video below, I share specifics around our company metrics, and talk about the implications of this for anyone who runs a property management business:

Closing Thought

Thanks for reading! -Peter

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