You learned everything you need to know about life and business before learning to drive.
Beyond that, it’s just an iterative process of optimizing.
I’m raising two curious, engaged boys under seven years old, and everyday, they surprise me with concepts that I wish I would see more of in my adult world.
My values are simple – curiosity, generosity, empowerment, and love (not necessarily in that order). This applies to everything I do. Moreover, I find that focusing on these attracts more of everything and deviating depletes everything.
I love Thanksgiving week because the slower pace gives me time to really focus. I focus on the areas where I’m not applying my values to their fullest potential.
Happy Thanksgiving week, everyone. Go out and make a difference in your life and the lives of those you love.
- Learn more about a veteran in your life
- Thank a veteran that you’re close to
- Thank a veteran every time you notice their insignia
- Learn more about the military family and how you can support them
- Find an attend a parade
- Raise awareness among your peers on the mental and physical health challenges facing veterans
- Execute on an idea to support active duty military at your place of work
- Create a policy to look out for veterans and first responders in the recruiting process
- Teach your children about patriotism and sacrifice
- Post on social media one thing in this country that you are grateful for and tag a veteran
There are so many more, but you get the point. We can all do more than deliver a stream of platitudes.
I was struck by an epiphany looking at the canned meat section of the supermarket this weekend.
There are 2-3 brands that are all pretty indistinguishable. The cans that you easily reach for are down by your knees. The specialty fish and tuna in a vacuum bag are at eye level.
I’ve known for a long time about supermarket shelf real estate a la the cereal aisle, but it was interesting to see this play out in such a small specialty. The brands essentially compete with themselves between cans and higher margin packages.
It also made me think about the Walmart and Amazon models. They built major brands on the strength of their margin strategy. At scale, Amazon Prime generates tremendous revenue, but they lose money on each new customer.
That said, the lifetime value of a Prime membership is worth much more than that short term loss. They pull you in and build loyalty with prepaid shipping and upsell services, like video and music.
I’ve been thinking a lot about how to play the margin game in real estate syndication. This way I can spend more than my competitors at the top and middle of the funnel.
“Who does what” is the first thing to learn about investing in hotels.
Investment-level hotel stakeholders are:
~ Owner – packages the deal
~ Operator – runs the hotel
~ Brand – provides distribution and enforces quality standards
Sometimes, these are all combined into one. Most often, they’re all separate, the brand also operates, or the operator has some ownership stake.
Big brands actually own very few hotels. (Marriott only owns 12)
They’re sales and marketing engines that deliver their most value in franchising / licensing their brand.
Open source drives innovation.
I noticed the same thing in my work. I am more productive and creative by empowering others than keeping everything to myself.
Value is in the execution, not the idea.
The economic man (homo economicus) is a rational decision maker with complete information. It’s easy to write academic papers when you don’t have limitations of irrationality or information asymmetry, but it doesn’t really reflect reality.
Enter the information age.
Smartphones, Google, social networks, deep web apps, artificial and assisted intelligence, big data, and so much more created an ecosystem that empowers us, individually, with more complete information than ever throughout history.
Enhanced connectivity further removed each individual from industrial age social structures, thus enabling the contract economy.
Therefore, we are exponentially closer to the academic model of a rational economic decision maker than we were just 10 years ago. This may be why it’s so hard for the talking heads to explain or predict economic movements in the prior cycle.
Six easy steps to efficient content production:
1. Set aside 60-180 minutes
2. Write down 100 content ideas, e.g., what to include in your database, how to connect with hotel owners, etc.
3. Rank order the ideas
4. Write an article about the top 10
5. Write an email to your list about the next 52
6. Create social media content for the remaining 38
The best thing I ever did for my confidence was…
Writing a blog.
I started writing commercially in college with a book called Graduate Rich. I self-published and sold one copy. After that, I didn’t really publish much of anything. Then, I became a hotel broker.
I needed a way to raise my profile and prove my knowledge and expertise. Someone suggested a blog, and I obliged.
I spent long hours setting up WordPress, designing my brand, and choosing graphics. Still, publishing was the hardest part of starting a blog.
Nobody wants to to be judged. We avoid the limelight like the plague because we can be revealed as the fraud that we are. And then I discovered a very important fact of life.
Nobody cares about your content!
It was crickets for weeks as I waited for readers to show up. I even promoted some content on LinkedIn and Facebook. Still, nobody showed up.
Then, I realized that I just need to deliver value and be patient.
This year, I started to gain traction. More importantly, I started hearing from my readers that my content is helping them.
No monopoly on good ideas.
I love to tour our properties with potential investors. For one, it feels good to show off a job well done. More importantly, it’s nice to get some feedback on areas of potential improvement from a fresh set of eyes.
Ideas are the currency of our modern economy.
We can receive them with skepticism or with an open source mentality.
In my experience, skepticism is a good tool for many things, but it can be damaging when ideas are coming from a place of love.
Open source, on the other hand, allows everyone to contribute. Every contribution is judged by its merits and accepted for the growth that could result.
Stock and flow applies to most transactional situations. It blew my mind when I started to connect the dots.
- Stock: current steady state
- Flow: activity to consciously change the steady state
It’s easy to see in real estate. Current supply of rentable units (rooms, apartments, square feet, etc.) And their quality is the stock. Development is the flow – improving land and buildings.
Take one step out from there and thing about public policy. I know…
Existing law is the stock, and politics, lobbying, and elections are the flow.
Medicine: best practices and treatment courses are the stock. Research is the flow.
You get the point.
How do you think this perspective can influence the way you interact with your stakeholders?