Building an IPO worthy Real Estate Investment Business

by blogger1
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on May 29 in Press Category

Despite the Facebook IPO flop many real estate investors are certainly wishing they were in Mark Zuckerberg’s shoes right now or at least have a dozen Silicon Valley properties to flip to the company’s founders and key staff. Who couldn’t find a use for a few extra billion right now?

So what lessons should real estate investors be taking away from Facebook’s legendary IPO if they want to build incredibly valuable businesses and make a few billion of their own? There are good and bad lessons to takeaway here for building a company that is salable and watching out for some major pitfalls.

Those investors who dream of this type of wealth have to recognize the need to go big in their businesses. If you want a billion dollar company you need billion dollar revenues. If you don’t plan for this build scalable systems and set those goals from the beginning it is unlikely this type of value will ever be reached.

Be careful about making enemies. You may enjoy snubbing others when you show up in your hoodie for business meetings but it may bite you in the butt later. Too much hype and attacks on larger and better funded competitors can also bite back at the worst possible moment – like IPO day.

On clearly fatal flaw made by Facebook has been its neglect of those who really turn in the revenues. Treat your advertisers, affiliates, buyers and sellers right and deliver great returns for investors. Help them win and they will be loyal when it counts.

Perhaps the biggest nail in the coffin of the Facebook IPO was a revision of documents warning about future potential revenue issues stemming from consumer trends towards mobile. This means real estate investors should not only be using social and maintaining their Facebook pages but get serious about mobile apps, local SEO and mobile marketing.

Obviously the opening stock price for Facebook was hugely inflated and way out of whack with earnings. Going big fast may be important but net profit and sustainable revenues are critical too. Real estate investors should be taking a serious look at outsourcing, cloud computing and VOIP as well as transactional funding for flipping houses to reduce debt and overhead in order to maximize the bottom line.

Lastly, don’t fall into the pit many other investors do every day and neglect branding. Results based marketing which delivers instant business is crucial but a monthly budget should be created for consistent brand building too.

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