How do you know when the right time is to start your HMO business? Many people think the answer lies in how much cash or spare time you have available, but the answer is far more complex than that.
Read about the top nine signs that you’re ready to start building your property business below or listen to the full episode on The HMO Podcast.
Here we’ll cover what you need to know and be aware of if you’re thinking about starting or scaling your HMO business.
9 Questions to Help You Know It’s the Right Time
Let’s take a look at the nine questions that will help indicate if you’re ready to start building your HMO business now. You don’t need to answer yes to all nine. You can figure out some after you get started, but the more of these you have already, the more likely it’s the right time!
1. Do you have a vision for this?
For starters, the first question to ask yourself is are you passionate about the idea of building a HMO portfolio and business? Does that vision consume you? For some people, this will unquestionably be a yes. But if it isn’t, now is probably not the right time to start your business, because you need a solid vision to be successful.
2. Do you have the drive and ambition to do this?
Starting and building any business isn’t easy. You need to commit to it and be passionate about what you’re doing, but you also need to have the drive and ambition to actually go out and do what it takes to build a HMO portfolio. Consider if you have that drive and ambition you need to start your business now.
3. Is there a voice in your head saying you can’t ignore this any longer?
Are you guilting yourself for not already getting started on your property business? Do you feel guilty when you’re doing other things? If the answer is yes, then that’s another good indicator that you are ready to start a HMO business.
4. Do you have the right mindset?
You need to have a strong mindset to build a property portfolio. You will get knocked down before you can even start reaping the rewards of HMO property investment, and you need to be prepared for that. If you’re willing to reprioritise your time, commit, and be resilient, this is another good indicator that you’re ready to start your business.
5. Have you done the research?
A lot of people get excited about the idea of building a property business, but they don’t actually do the research and find out what’s really involved. How could you possibly know if it’s right for you if you don’t do that research?
While good cash flow is one of the biggest benefits of investing in HMOs, there’s a lot you need to do and be aware of in order to start generating that. So, do your research and make sure you understand what’s all involved in HMO investment.
6. Can you stomach the risk?
When it comes to building any business, there’s a real risk that it’s not going to work out and the time and money that you have invested will go down the drain.
Property costs big sums of money, and that inevitably brings more risk, particularly when you start throwing in refurbishments, legislation, and other hoops you need to jump through. Are you ready to stomach all that risk? If you are, then that’s another good indicator that the timing is right for you to start your business.
7. Are you prepared to fail?
You have to be prepared that a lot of decisions you make won’t go your way. You’re going to spend time investing in things that don’t quite work, and you’ll work with people who turn out to be the wrong people. There are lots of ways to fail in property, so you need to prepare yourself for this.
8. Have you mapped out your business strategy?
Mapping out your business plan is fundamental to starting your own HMO portfolio and is the starting point of any good business. If you have a lot of what we’ve talked about already, then you need to get your strategy mapped out. Set measurable targets, create an action plan, and hold yourself to account.
9. Do you have a support network?
You need to have a support network around you, and ideally, it’ll be a mix of friends, family, and people in the property industry. Having a support network is so important in business, particularly, when it comes to building a HMO property portfolio.
A property-related support network should include people who are prepared to help you irrespective of whether you’re paying for their time or not. This allows you to learn from their experience and knowledge, and you can lean on them for support and encouragement.
Are You Ready?
Those are the nine indicators to help you determine if you’re ready to start your HMO business. I hope this has given you the information that you need to determine when the right time is and inspires you that now might be the time to start building the business you’ve been dreaming of!
For additional resources and lessons on how to start, scale, and systemise your HMO business, become a member of The HMO Roadmap. And if you’d like to join a support network for HMO investors, come and join us on The HMO Community Facebook Group!
About the Author:
Andy Graham is the founder and the lead trainer at The HMO Roadmap! He is also the co-founder of The HMO Mastermind and Smart Property, a specialist HMO property investment and management company. He writes as a regular columnist in different magazines about a variety of HMO topics and is the host of The HMO Podcast! Follow Andy on Instagram!