the economics of change: how to save your business with a modern mindset

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2016 © AppFolio, Inc. Confidential.

The Economics of ChangeHow to save your business with

a modern mindset

Vince ColeyDirector, Implementation Services

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• Property management and accounting

• Online rent collection (free)

• Prospect / guest card tracking

• Vacancy Marketing

• Websites

• Online applications & leases

• Resident Screening

• Mobile Inspections

… So You Run A More Successful Business

Web-Based Property Management Software

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CHANGE IS BAD


How will this

change affect me?

FEAR


Change is difficult. Not Changing

is fatal.


If You Don’t Change

LEASING

RENTS

OWNERS

MISTAKES

The list goes on and on...


YOUR COMPETITION

(embracing change :)


“I want you to find a bold and innovativeway to do everything exactly the same way

it’s been done for 25 years.”


“The secret of change is to focus all of your energy, not on fighting the old,

but on building the new.”SocratesSocrates


Due Diligence

Engage Your Team Early

Focus on Value

Decide to Commit

Execution Time


Your Perception

The Reality


The Leasing Process“But, We’ve Always Done It That Way.”

Over time, we accept deficiencies in our property management & accounting systems as “the norm” and adapt our processes to fit

these limitations.


Structure Your Decision Process

What’s Your Business Goal?

What’s Holding You Back?

Other Goals & Initiatives

Ex: Grow X Units Next 12 Mo w/out Adding Headcount

Must be Measurable“More Efficient” → $$$

Why can’t you achieve your goal?Where Spending Time?

Mundane Tasks, Duplicate Entry, etc

Maximize Use of TechnologyEven Better Customer Service

Attract & Retain Modern Owners & Tenants


Why AppFolio Now?

Marketing – Save $163 per month

Leasing – Save 14 hours + $40 per month

Accounting – Save 40 hours + $720 per month

Maintenance – PMs can focus on adding owners

Communication – Save 20 hours + $28 per month

Maximize Use of Technology

Provide Even Better Service

Owner/Tenant Retention ToolsAnnual Return

on Investment $25,469

Business Goal: Grow by 20% in 1st year w/out adding headcount


Due Diligence


Focus on Value

Decide to Commit

Execution Time


What’s your business goal?

What’s holding you back?

What other initiatives are you thinking about?Decision

BusinessOwner

AccountingLead

Prop MgtLead

Mr. T


Who’s Driving the Bus?

To Change... Not To Change...

Engage & Drive

Build an ROI Case& Sell It!

-OR-TEAM

MEMBER

BUSINESS OWNER


TEAM ENGAGEMENT = TEAM COMMITMENT


Due Diligence


Focus on Value

Decide to Commit

Execution Time


Don’t Re-invent the Wheel

Don’t try to duplicate your current processes in a new solution

Expect some trade-offs, stay focused on value

Be open minded, ask for best practice recommendations


“How do other property management companies

solve that same problem?”


value

check boxes

Not All Features Are Created Equally


Do Your Due Diligence & Focus

on Value

1. Due Diligence: What are your Goals? Challenges?

2. Make a list of specific items and walk through them with your sales rep. (focus on Value!)

3. Don’t pass go until you’re confident that your due diligence is complete!

A Common Mistake

1. You haven’t been trained on the software.

2. How will you know if your testing is successful?

3. Don’t make this decision based on gut feel.

“I just need access to a demo site so I can testthe system for myself, tosee if it’ll work for me.”


Due Diligence


Focus on Value

Decide to Commit

Execution Time


Do or do not,there is no try.

Yoda


Mindset Matters

#1 ingredientof any successful

change.

POSITIVE MINDSET


Commitment Starts at the TOP

We areDOING

This!



Expect a Few

Surprises

Committo Finding Solutions


Everyone Onboard?


Do your due diligence and

decide to commit!

A Common Mistake

1. No commitment...what message does this send?

2. Same planning/time/effort/decisions need to be made for 5, 50, 500 or 5000 properties/units.

3. Don’t turn a 1-2 month implementation into a 6-12 month process → the team will suffer.

“I just want to try afew properties to see if the software will work for us.”


Due Diligence


Focus on Value

Decide to Commit

Execution Time


What’s your business goal?

What’s holding you back?

What other initiatives are you thinking about?Project

BusinessOwner

AccountingLead

Prop MgtLead

Mr. T

Subject Matter ExpertsTech Savvy

Influential (in a good way)Get the “Vision”

Great Attitudes a Must!!


Expectations & AccountabilityGet a Checklist → Understand the time & effort commitment so you can plan ahead

Dedicate Resources → Allow them to focus on the highest priority items for the biz (the transition!)

Hold Your Team Accountable → Timely delivery of tasks & deadlines


Host a Launch Party

SHARE: Your business goals & how the new solution will help you get there.

THINK: What’s in it for them?!

SAY: This will take time andEffort. We are DOING this.

But, it’ll be so worth it!


Celebrate Your Successes!


Due Diligence


Focus on Value

Decide to Commit

Execution Time

Thanks!Questions or Comments?

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the economics of change: how to save your business with a modern mindset

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