“How Real Estate Investor’s Apply the Kaizen Philosophy
for RAPID Growth” 

 

The Kaizen business philosophy is a Japanese concept that has 
received lots of attention in the corporate world, and there’s no
reason it cannot be applied to you as a real estate investor

At the heart of the Kaizen philosophy is the idea of small, continuous
improvements that over time lead to massive profits,
constant growth, and a steadfast hold on your marketplace.

A real estate investor can use kaizen to develop a great level
of success in the field. However, it all begins with an understanding of
kaizen, which actually originated after World War II in Japan,
when American experts such as W. Edwards Deming and Joseph
Juran were brought into Japan and help rebuild its infrastructure.

At the time, Japan was war-ravaged and these experts, it was
hoped, would help the country get back on its feet.

By the 1950s, their early work led to a kaizen revolution.
 
Quite simply, the principle of kaizen follows a few basic steps
in a continuous cycle:
 
1) Standardize.

As an investor, with your real estate investment business, think
about the areas of your business that you need to improve in
order to grow your profitability. Find systems for dealing with
these needs rather than just approaching them in a haphazard
way. For example, develop a step by step system or checklist
for evaluating properties, marketing, lead management, etc. 
 
2) Measure the standardized operation.

In order to manage and improve something, you need to be
able to measure it. Rather than deciding to close more deals,
for example, evaluate how many deals you are closing weekly,
monthly, and yearly.  

This practice is simple from a thought perspective, but 
countless investor’s I run across Do NOT prepare, plan, then
reassess themselves accordingly. Make sure you have set quarterly
targets in your business, then re-visit  and measure your success 
every 90 days to take heed of your progress.

The payoffs will be enormous.
 
3) Compare measurements against your investor requirements.

Look at your goals and compare to how well you are doing.

For example, if you want to close ten deals a month but only
close one, there is a huge difference there, and you need to
ask yourself two questions – First - are you doing everything you
can possible  as an entrepreneur to install busines systems to
market, manage, and then scale your investment business?

(and if you have already, are these fully optimized?)

 Secondly, if your intention was 10 deals per month and you’re
only doing one, then are your objectives truly realistic based
on the business foundation and brand you have in your market?  
 
4) Innovate so that you close the gap between requirements and measurements.

Brainstorm new ways of closing real estate deals and always model
the success of  other real estate investor’s, evaluating how they are
able to achieve the results you want, then integrating their success
practices into your business.
 
5) Standardize upon your “new” cycle of procedures.

Once you have developed a new step by step process for marketing,
qualifying, closing, renting and/or flipping real estate deals, setup a
process to make that your new business standard.

Then, adjust your goals higher so that you have a new aim to work
toward. 
 
6) Repeat. 
  
As you can see, for the real estate investor, kaizen has
several advantages.

First of all, this goes against many of the kinds of late night
TV infomercials professing almost ‘push button’ wealth….
becoming a successful real estate investor takes effort, time,
and a consistent application of proven and effective business
practices.

Secondly, the kaizen business philosophy pushes him or her
to create a system for dealing with frequent tasks.

Rather than just making cold calls to unqualified sellers on the
fly, for example, kaizen encourages the entrepreneur to consciously
think about what works and develop a system or technology for
making those calls to QUALIFIED prospects.

It also encourages that entrepreneur to measure success and to
constantly improve results.

By harnessing the power of the kaizen business philosophy, a real
estate investor will absolutely recognize geometric changes and
exponential revenue growth in their company.

To Massive Profits

Brad Wozny

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