If you set your sights on quick gains for your short-term rental business, you may end up creating unnecessary hassle for yourself, even creating a situation that is untenable in the long run. This is why it is always wise to think ahead whenever you are planning out your business, considering the ramifications of every decision that you make and any pitfalls that you may encounter.
You need to remember that the most exciting opportunities are the ones that are the most likely to cost you dearly in the future – eating up your resources and burning you out before you can reach your full potential.
Before you do anything else, stop to think about what you think you can handle in terms of scope. While you may have high expectations for your future self, you need to temper your vision somewhat. It is unfair to assume that you can continue to ramp up your efforts to infinity, and if you do not allow yourself a little leeway, you are going to fall far short of your goals. Your passion for your short-term rental business is admirable, but according to the Harvard Business Review, that very passion is what frequently leads entrepreneurs and business owners to burn themselves out.
Now, you are probably familiar to a degree with all of the hype around Airbnb and short-term rental management. This hype is real – to an extent – and the numbers do not lie. Yes, growth will exceed 7% annually in the years ahead. Does that mean you can expect 7% annual growth ad infinitum? That is less likely, but if you play your cards right, you can expect some growth at least.
Once you have come to an understanding with yourself and decided just what level of growth you can handle, consider what you would need to do to double your business. Trust your instinct on this, but if your answer is “Work twice as hard,” you need to go back to the drawing board. This is a matter of resources – the tools and the people that are there to support you. Scaling up is about more than just multiplying your business model: you need to take into account the buy-in costs that you face every time you take on a new rental unit, the time that it takes to service your units, and the diminishing returns you see as you add another unit close to one of your other units.
In short, every variable counts. You cannot overlook anything if you intend to achieve true sustainability for your business model. “Small” details tend to bubble up and become huge problems if you do not notice them before scaling your business model, so the minor issues that you fix in a matter of minutes could become insurmountable logistical challenges – if you are unaware of their true nature before you move forward. The key to creating a sustainable business model is awareness – of which you can never have too much as an entrepreneur!