Podcast Title: The Boostly Podcast
Host: Mark Simpson
Episode Title: From Startup to Scale-Up: How I Built and Sold A 130-Unit Business
Release Date: November 25, 2024
Introduction
In this episode of The Boostly Podcast, host Liam Carolan welcomes Sasha Tucker, the founder of Norfolk Holiday Properties, to discuss his impressive journey from managing just two family-owned properties to scaling up to a 130-unit business and ultimately selling it to a leading industry group, Host and Stay. The conversation delves into the strategies, challenges, and insights Sasha encountered along the way, providing valuable lessons for current and aspiring property managers in the hospitality sector.
Starting the Business
Elevator Pitch and Beginnings [03:41-04:23]
Sasha introduces his company, Norfolk Holiday Properties, as a holiday let property management agency based in Norwich, covering the entire county and currently managing about 130 properties. He shares the origin story, highlighting how he began six years ago by managing two family-owned properties after deciding to return to Norwich post his stint as a photographer and videographer in Portsmouth.
Key Quote:
"I reached out to Stefi and I asked them, what can you do for the Boostly peeps? What can you do for the Boostly crowd?" – [02:06] Liam
Scaling the Business
Growth from Two to Twenty-Three Properties [05:05-10:44]
Sasha recounts the initial excitement of listing properties on Airbnb, which led to immediate bookings but also the realization of the demanding nature of property management. He emphasizes the importance of building a solid database through tools like Stayfi for guest data collection and automated communication.
As demand grew, Sasha scaled his operations by hiring his first staff member when managing around 20-30 properties and a second hire at the 40-property mark. Moving into a dedicated office space marked a significant milestone, enhancing the company's credibility and operational capacity.
Key Quote:
"Businesses have got two problems. Not enough of the right team and not enough leads coming in. If you smash both of those things, get the right amount of leads but the right people, then you're on a good path there." – [10:17] Sasha
Challenges Faced
Managing Growth and Maintaining Quality [05:33-14:48]
Sasha discusses the unexpected challenges that come with scaling, such as the increased on-call responsibilities and the emotional toll of dealing with dissatisfied guests. He highlights the necessity of building a reliable team to handle operations and maintain service quality, which allows him to delegate effectively and stay mentally present.
Key Quote:
"You can’t have bespoke arrangements with different owners. That’s how you will fall into trouble. You can’t have systems, you can’t train staff if it’s not the same process every single time." – [23:26] Sasha
Acquisition Process
Decision to Sell and Acquisition by Host and Stay [26:37-32:32]
Sasha explains that the decision to sell Norfolk Holiday Properties was driven by personal strains and operational challenges at scale. He leveraged LinkedIn to connect with potential buyers and ultimately decided to sell to Host and Stay, a company that aligns with his values and offers comprehensive property management services. The acquisition process was smooth, facilitated by mutual respect and shared business philosophies.
Key Quote:
"Host and Stay are true disruptors to this industry and they are approaching it from a full management point of view." – [31:25] Sasha
Advice for Aspiring Property Managers
Preparing for a Sale and Building a Sellable Business [27:16-35:45]
Sasha offers actionable advice for those looking to grow and potentially sell their property management businesses:
- Quality Listings: Focus on acquiring high-quality properties and ensure they are professionally photographed to enhance appeal.
- Diversified Portfolio: Avoid revenue concentration from a few clients to reduce risk and make the business more attractive to buyers.
- Standardized Contracts: Implement uniform contracts with property owners to streamline operations and provide security for potential buyers.
He emphasizes that even smaller businesses are attractive acquisition targets if they maintain quality, diversified revenue, and standardized processes.
Key Quote:
"If you've got more than one unit, you know the pain of just operationally managing the day-to-day stuff, from cleaning to maintenance to guest communication, how do you manage that at the level of 130? Is there any tips that you can give saying that, you know what, these couple of things made it a little bit easier to do." – [22:37] Sasha
Overcoming Operational Challenges
Standardization and Team Building [23:26-37:40]
To manage a large portfolio effectively, Sasha highlights the importance of standardizing operations and building a competent team. He advises against bespoke arrangements with property owners, advocating for uniform processes that facilitate training and scalability. Implementing internal guidelines to assess property quality ensures that only suitable listings are accepted, maintaining service standards and operational efficiency.
Key Quote:
"Having people to help you handle that is something that you can look forward to. So if you're looking to hire your first member of staff and to start growing your team, that's a massive point." – [09:05] Sasha
Future Plans and Reflections
Personal Growth and Continued Investment [37:40-44:37]
Looking ahead, Sasha shares his plans following the sale of Norfolk Holiday Properties. With the impending arrival of his first child, he intends to focus on expanding his personal property investments rather than continuing in the high-demand, 24/7 nature of property management. He expresses a passion for entrepreneurship and business development, seeking new investment opportunities.
Reflecting on his journey, Sasha acknowledges the hardships and the personal growth that came with scaling a business. He advises aspiring entrepreneurs to find joy in the process and maintain resilience despite the challenges, as the path to scaling and potential exit can be both rewarding and demanding.
Key Quote:
"If I had known what it was going to be like and how hard it was going to be, I might not have actually gone in to do it. I mean, because there's no guarantee that you're going to get an exit at the end of it which will make it all worthwhile." – [38:48] Sasha
Conclusion
Sasha Tucker's journey from managing two family properties to establishing and selling a 130-unit business offers invaluable insights for property managers aiming to scale their operations. Key takeaways include the importance of quality listings, diversified portfolios, standardized processes, and effective team building. His experience underscores that while scaling a business in the hospitality industry is fraught with challenges, strategic planning and resilience can lead to substantial growth and successful exits.
Final Thoughts:
"Businesses have got two problems. Not enough of the right team and not enough leads coming in. If you smash both of those things, get the right amount of leads but the right people, then you're on a good path there." – [10:17] Sasha
For those interested in learning more or connecting with Sasha, he can be found on Instagram under the handle @SashaTucker.
Note: The advertisement segments from Stayfi and Hostfully have been omitted to focus solely on the content-rich parts of the episode.