Blog

Power Negotiating in 10 Steps

Whatever business you are in, whatever role you fill in your company, negotiation is part of your responsibility. Whether you’re trying to buy a machine or a building, capture a new customer, get a better deal from a supplier, sell your company, or buy someone else’s company, negotiation is part of arriving at a mutual agreement to get something done.  The master educator on the topic of successful negotiation – in my view – boiled it down to 10 rules. He’s written excellent books on the subject (the latest is “Secrets of Power Negotiating”, Roger Dawson, Career Press 2021) but he once summarized it for us into the 10-point list below.

A note of caution: Those who are committed to the fine art of win-win negotiating may find this list a bit harsh on their adversaries. If you’re leaning that way after reading this, keep in mind that in any “win-win” negotiation the first “win” – yours – is still the most important one.

OK, here’s Roger’s list:

  1. Never accept the first offer without some attempt at negotiation, so the other side feels they’ve won a negotiation.
  2. Don’t let the other side know how much you care.
  3. The real power in negotiation is having options and successfully restructuring the other side’s options.
  4. Ask for more than you expect to get, and never start with your best offer.
  5. You opening position should be as far above your objective as their offer is below it. To make this work you must get them to commit first.
  6. Be sure to flinch at their first proposal, otherwise they may think they can do even better.
  7. Always play the reluctant buyer, and beware the reluctant seller.
  8. What can you give them, that won’t take away from your position, yet will be something they want?
  9. Remember these words: “You’ll have to do better.”
  10. And these words: “How much better do I have to do?”

There are several advantages to this list. First, it’s not hard to remember or put into use, as I discovered soon after I heard this for the first time. Second, you have the opportunity to put your opposite number at a disadvantage, but still create the opportunity for a win-win result. And third, you will probably get a better deal than you would if you just wing it, a frequent tactic of inexperienced business negotiators.

Want to give it a try? If your company needs help understanding and managing the financial aspects of your business, and you realize you don’t have all the answers, call me and negotiate a deal for my team to help yours. I guarantee a win-win at the end.

We are Your CFO for Rent.

How Much Financial Reporting is Too Much?

I spoke with a CEO today, referred to me by a business associate, about providing CFO services to get their financial records current and their financial reporting up to what is needed to manage the business. It didn’t go as I had hoped.

The CEO’s company, in the business of refurbishing major pieces of equipment operated by large companies, gets their business when customers send them a project to complete, sometimes providing materials and sometimes leaving that up to the company’s procurement team. Adding parts and labor is always involved, and the company charges all those costs to job numbers associated with the project. Pretty good, huh?

Well, not quite. The company does not ever compare those costs with the price they charged for the project to see if they made money, lost money or broke even. The CEO believes any financial reporting beyond the monthly standard reports – balance sheet and income statement – is an unnecessary cost in an environment in which he is trying to keep costs to a minimum. (At the outset of COVID sales dropped and the company laid off, among others, their CFO and Controller.)

Let’s think about that for a moment.

If a company is trying to fix its bottom line, cutting costs is a good idea – usually the first one that comes to mind. But then increasing gross margins is another, more all-inclusive way, achieved by

  • cutting job costs,
  • increasing prices to customers, or
  • better managing the production processes through measuring and reacting.

But if you don’t know how much you made or lost on Project A or Project B, you risk losing money on new business vs. making money, and not even knowing it. You can’t cut costs enough to escape that dilemma. That’s why we insist clients have management reports geared to their unique needs, rather than simply relying on the reports that come out of a prepackaged software product. Those standard reports are mostly designed for outsiders, not for running a profitable business. For that purpose the standard reports are only the starting point.

Whether a company sells its own products or does work to its customers’ specifications, that cost capture and management is essential to profitability. Standard management reports can include a wide variety of data analysis, depending on the nature of the business the company is in. But certain things MUST be measured to avoid trouble:

  • The profit earned from each major product or project the company undertakes,
  • The overall profitability of a relationship with each of the company’s major customers,
  • The relationship between overhead costs and sales volume, a key part of gross margin analysis.

Whether your business is making airplanes or selling cotton candy, you’ve got to know the answer to each of those touch points, every month, every quarter, every year. And you need the accounting team to be able to produce that, ARTistically (Accurate, Relevant, Timely).

And that’s what the CEO I spoke with today doesn’t yet understand. I hope you do, though.

We are Your CFO for Rent.

The Greatest Management Challenge

I wrote this article for my (print) newsletter 25 years ago. It’s so relevant even today that I decided to republish it, even though it’s longer than my usual post. I think it’s worth the extra few minutes you’ll spend reading it.

We are often asked: What is the most common problem that we see in the companies we work with. The answer might surprise you.

The commonly expected answer is financing, or adequate cash to run the business. It’s true, cash is often a big challenge, particularly for companies in dynamic stages of change, growth or decline.

But we don’t have much trouble raising money for companies that have their act together. Everyone knows there are lots of banks looking for “a few good borrowers,” and there are tons of second tier lenders for companies still too young for their bankers to take on. In addition, there is lots of venture capital and “angel” money looking for solid investments. And then there’s the investing public via stock offerings, the government via the Small Business Administration, and the list goes on. So availability of money isn’t really the problem.

The Problem.

The problem that we see most often, and which is the greatest deterrent to successful growth, is management focus.

You may ask: Is that the old saw about management, management, management? Yes, it is, but with a particular emphasis: Clear and determined focus on the most important strategy, objective, or task at hand, is the challenge that I see entrepreneurial companies most often stumbling on. Their stumbles are usually painful, and too often fatal.

The founder starts his or her company with a singular focus on one of three things, generally: a great, innovative product, a passionate mission, or a market niche that is not being served. The company gets launched, and initially funded, as a result of that focus. Then there is a company to run, with people to hire, train and manage, operating procedures to create (and then monitor), more financial commitments, more financial risk, more need for financial and management attention.

And all this is in addition to the things that got the company going in the first place. Founders are not particularly good at these things, but someone has to do them. To make matters worse, founders often don’t trust someone else to do the work, and if hiring is not their strength they may have good reason not to trust. But often it’s just because it’s their company and they want it done their way. Some control-oriented CEOs will supervise these activities in minute detail, even if it’s not their area of expertise, often smothering the very employees they hired to do the job.

The result is the founder takes his or her eye off the ball. They no longer have enough time to drive development, or close key sales, or network with the people who will provide the next level of funding or partnering. And no one else is there to carry on with the same intensity, the same commitment, the same passion. So that great idea that launched the company now falters, and everyone wonders why the company got into trouble when it had such a great start.

The Answer.

The answer, then, is management focus: applying the most important company resources to achieve the most important company objectives, no matter what.

So, what are the most important company resources? And which are the most important company objectives?

Good questions. And of course the answers are different for every company. The way to find the answers that are right for you, however, is not so different. You can use many of the same techniques that built Amazon, Walmart, Microsoft, and every really well managed company. We believe they break down into five fundamental tools of business management:

The Process.

  1. Vision. There must be a clear vision of what the company wants to become, and it must be actively reflected in the mission and the daily activities of your business. If your primary focus is simply to make money, you will be distracted by every momentary challenge to current profits, and you will be repeatedly pulled from one opportunity to another. It’s like trying to pick a stock by only looking at the daily trading ranges. You will spend your time chasing trends rather than setting them. Always be crystal clear about where you are going, and make sure everyone in your company sees the goal too.

2. Planning. The foundation of every successful venture is a plan. A well thought out (and clearly written) business plan (both strategic and tactical) starts with your vision and then identifies:

  • What you want to achieve, your specific goals and objectives;
  • What you must do to achieve it, what products, what markets, how much, how fast;
  • What resources you will need, people and money mostly; and
  • The strategy for using those resources to achieve the goal.

When your plan is on paper, you will know what you must focus on, and so will everyone else.

3. Budgeting. A budget is the monetary tracking system for your plan. Every CEO has one, but most have it in their heads somewhere, or on a shelf, rather than in the hands of everyone who can use it to help produce the desired results. A budget that is not actively used by everyone who has a role in managing the business is worse than useless, it’s a waste of precious time. Every CEO should expect their people to understand, and strive to stay within range of, budget targets. This usually means that key players must have had a role in creating it. It always means that three questions are asked and answered every month:

  • Why did we get a result different than we budgeted?
  • What must we do differently to get a better result next month?
  • What did we learn that will make next year’s budget better?

4. Hiring. Hire the best people you can afford. Then pay them what they’re worth, and expect exceptional performance from them. Define the job to be done, and then find people who excel in doing that job, whether it be CFO, salesperson or shipping clerk. You will get your money’s worth many times over, and you’ll need fewer people to operate your company. If you hire primarily based on the lowest wage that you can convince someone to accept, you will never get more than a day’s work for a day’s pay, and that’s not the way great companies are built. Hire the best.

5. Managing. Let your people do what you hired them for. Give them clear direction, or vision, or guidelines, and then stay out of the details. They will never do it the way you would, which is quite often better for you. They cannot do it the way you would and be the quality people you intended to hire. If their work does not meet the company’s standards, then change their job or change the person. Do not spend your time making up for their shortcomings. You’ll only aggravate your own shortcomings in the process, and neither job will get done right.

Management focus is achieved by pursuing a vision with clear, targeted action plans, and employing talented, dedicated people to do whatever it takes to meet those plans. Business success is achieved by either mastering that process or being very lucky. Do you feel lucky?

We are your CFO for Rent

To Lend or Not to Lend – That is the Question

We have two clients currently looking to improve or change their banking relationship. In both cases the reason is twofold: the need for growth capital and the unresponsiveness of their current bank. Neither is based in southern California, where intense banking competition might make the change less challenging. As we guide them to make the best choices for their quite different needs, the idea of this blog post was born. Perhaps you can gain some wisdom from these two short case studies.

Company A is in the business of construction, investing and management of real estate. A mid-sized, profitable, privately owned company, they had a significant drop in construction activity during the COVID surge, and are looking to refinance a couple of real estate loans. If you ignore the universal impact of the surge on businesses everywhere – as their bank apparently did – you would look at their growth curve and say the growth part is missing. “Let’s wait a couple years to see how you rebuild revenues. Then we can talk about real estate financing.” In my view that is not productive for the company or the bank. The company’s job is to rebuild their business by profitably employing as much external capital as possible, consistent with reasonable needs and the ability to service their debt. The bank’s job is to make profitable loans that will be repaid in accordance with their terms. That sounds like a match to me, but apparently it didn’t to their bank. We are introducing them to new bankers who think differently.

Company B is a provider of manufacturing equipment sales and service. They’re a tenth the size of Company A, and coming off a COVID period that saw their investment in territorial growth deliver a couple years of losses, followed by a very strong resurgent 2021 and an even stronger start to 2022. They are looking for an SBA-guaranteed loan to replace their monthly rent with a much smaller mortgage payment, plus the room to continue to expand. Perhaps not as strong a loan candidate, but with over a year of solid profits and a loan that is partially guaranteed by the SBA, this should be worth considering by the bank they’ve been with for nearly a decade. But their banker is trying hard to lower expectations and hint that they’ll not be favorably treated by the loan committee. And as we all know, it’s your assigned banker who will take your story to the loan committee, and if he/she’s not sold, they’ll not likely be sold either. So, we are going to give their current banker enough information to document our story, and see what he does with it. We are at the same time preparing a short list of new bankers to introduce to them. They will get their financing – it’s just a question of old bank or new bank.

What’s the common thread in both these stories? A banker who doesn’t value the years-long relationship with their customer, who doesn’t see what’s happening today and how it differs so much from the past couple years, and is choosing “easy to say no” rather than finding “a way to say yes.” Banks have been burned in the past, and I can understand the conservative leaning that many of them retain as lending policy. The question is how far should that tendency go before a banker is not doing service to the customer or the bank. A question best answered with honesty, solid reporting of financial results, meeting ongoing projections, and recognizing when it’s time to make a change.

We are Your CFO for Rent.

Inflation Fighting Ideas

It will cost you $2.15 today for what would have cost you $1 in 1990. You don’t have to read about the effects of inflation to know that it’s hitting everyone and every company. You see it at the gas pump and the supermarket. Your managers see it in the cost of raw materials, supplies and (of course) labor. CEOs rank it as their #2 concern (behind labor shortages) in trying to grow their companies and preserve profits. When inflation hits your cost structure and it isn’t dealt with effectively, the result is damage to your balance sheet, decline in the value of your business, and perhaps even the survival of that business.

So, here’s a list of ideas for you to carefully consider to moderate that impact, taken from over 30 years of serving corporate clients through several periods of serious inflation – although this is arguably the worst in that timeframe (see chart).

  1. The obvious one is passing cost increases through to your customers in the form of price increases. But this needs to be implemented with care and communication, both before and after changes are made, to avoid negative feedback. If I can’t empathize – at least a little – with your need to charge me more, I’m going shopping elsewhere.
  2. Consider scaling back the breadth of your product offering, keeping those most popular and/or most profitable. For manufacturers, look at products that have component overlap to consolidate manufacturing complexity, potentially lowering your production costs.
  3. In your budgeting, allocate available resources to your most profitable offerings to maintain an overall ROI and preserve profit margins. Go back and re-read my post of 2/11/2022 outlining the five things you must know about your cost and profit structure. Focus on items 2 and 3 on that list.
  4. While the urge to get people back to the office may be strong, consider adopting a hybrid staffing model enabling you to downsize committed office space. If leases are coming up for renewal this is the perfect time to seriously consider how much space you really need.
  5. Since some suppliers will use the supply/demand imbalance to add to their profits rather than just preserving margins, don’t be afraid to actively engage in negotiating lesser price increases, diversifying your supplier base, building more inventory in return for special pricing concessions, etc.
  6. Have a long-term capital spending plan? Consider accelerating that plan with today’s lower cost of money as the Fed raises interest rates in an effort to suppress inflationary demand. If you have cash put aside for that purpose, even better. You can expand capacity at a lower cost and sell the output at the higher prices that tomorrow will likely bring.

Want to move on some of these ideas now but need some help in implementing them? Call us today.

We are Your CFO for Rent.

CRE: Could Relate to Everything

I have a lot of interest in real estate investing, so I read a lot about trends and opportunities across the country. One of the odd things I see is the labelling distinction between types of investment properties. Single family homes, or SFH’s, are clearly labelled as such, but often everything else is lumped into the label “CRE” for Commercial Real Estate. To me, saying CRE is like saying “Hot Food.” It tells you nothing about the wide variety of property types that are grouped under that umbrella, and the variety is like grouping chicken noodle soup with a filet mignon steak or hot roasted chestnuts. A couple of examples to further reinforce the obvious:

  • Apartment Building (Multifamily) – multiple tenants with low commitment to the property who come and go frequently, often in the middle of the night – CRE
  • High rise office building, now half empty, multiple business tenants under various types of leases ranging from a year to perhaps 5 years – CRE
  • Hospital, owned by a nonprofit corporation, run by doctors who really need a hospital management company to keep them afloat (and may soon sell to one) – CRE.
  • Restaurant/Food Service – Subject to the whims of local appetites, COVID restrictions, and anything else that keeps people from eating out or eating at this particular place – CRE

While those may be examples of not very good real estate investments, depending on your risk tolerance profile, they are all generally referred to as Commercial Real Estate. So when you read about the good news – apartment rental rates continue to climb– or the bad news – your local (now closed) movie theater is owned by AMC who may or may not survive the threatened bankruptcy that hovers over them – keep in mind that this does not spell doom for CRE, just problems for that particular segment of CRE.

The good news: Lots of CRE is doing just fine, thank you.

  • Multifamily properties that are well managed are doing great.
  • Dollar discount stores are having great year-to-year growth as shoppers pay more attention to prices and value and less to fancy surroundings, particularly in suburban communities.
  • Large chains of specialized medical properties – notably dialysis treatment and urgent care centers – are expanding as fast as they can across the country, then selling off their properties and signing long term leases so they can focus on the business and put their money into more new locations.
  • Warehouse properties – well, if you shop at Amazon and get your purchases delivered the next day, you know how that’s going.

So what’s the point of this discussion? Don’t let your financial advisors rule out CRE because they read the bad news about chicken noodle soup and forget there’s a nice steak on the menu. Do your homework, expect them to do theirs, and make better investment choices as a result. A few years down the road you’ll be glad you did.

We are Your CFO for Rent.

Pay for Performance – Again

As employers struggle to fill open positions in their companies during The Great Resignation, they find themselves competing with other employers to pay more for workers they want to keep or attract, often with no real sense of how to do this in a reasonably efficient way. Anyone who thinks this is the first time this has happened is clearly not a student of even recent history. Many companies are producing much higher profits than before the coronavirus hit as a result of strong demand, and their workers know it. So what does it take to keep them, to make them more productive and happy about it besides? A couple of words that come to mind are appreciation and trust. If that doesn’t cause you to stop reading, let me keep going…

We think a significant reason for the lack of trust that has developed between employees and employers over the past couple decades has been earned. Just ask any salesperson what goes through his/her mind when their company announces any changes to their compensation plan and you’ll hear something like: “OK, I wonder what they’re taking away this time?” The reality is that many companies have not earned that trust – often adjusting bonus plans to limit success payments, crafting elaborate plans to favor top executives despite ostensibly offering equitable sharing of rewards, promising a lot but delivering a lot less, and so on. As for workers other than the sales team, it’s even easier for them to feel taken advantage of, since their efforts don’t get the vocal appreciation that comes from beating quota, a big sale or a large new customer.

It is true that a successful incentive compensation plan needs to be adapted to the level of worker that management is seeking to motivate – factory workers will not be moved by the same options that move vice presidents. It is also true that responsive incentive plans are more work to develop and administer than straight salary plans, and the more responsive the plan the more administration it will likely require. But once you get past the design stage, most of the work is around performance evaluation: goal setting, getting buy-in, evaluating results and monetizing those results in a credible way. Performance evaluation that should be taking place anyway, don’t you think?

If you want to get it right for your company, and gain the benefits that incentive compensation can provide, here are some questions you should ask yourself, and incorporate the correct answers in your plan design:

  • Is there a defined corporate strategy that is communicated so employees understand what the company wants to accomplish?
  • Does the incentive plan drive behaviors that lead to the objectives outlined in its business plans?
  • Do employees actually experience appreciation for the work they do, even when it’s only indirectly furthering the company’s goals and objectives?
  • Does management know what competitors are paying for base pay and incentive compensation so the company can be competitive in its offerings?
  • In addition to the company’s performance, do employees know what specific individual performance goals they must meet in order to maximize their share of any bonus plan?
  • Do personnel receive periodic, objective, helpful feedback on their performance throughout the year in an easy-to-understand performance evaluation process?
  • Do employees know how well the company is doing throughout the year because of proactive communication?

A lot of work? Yep! Compared to endless recruiting, interviewing, and exit interviews? Not so much.

We are Your CFO for Rent.

You Set the Standard – or Do You?

Business women discussing in a meeting

In any company, large or small, the leaders set the standard for the way the company should be run and the way decisions should be made. And the company prospers. At least that’s the theory. In practice, not so much. In an attempt to get readers’ attention we’ve seen these arguments presented as a reason to enroll for a seminar, sign up for a workshop, buy my book, etc.

Here’s my view, and it’s free – nothing to buy, your only cost is the next 5 minutes of your time.

Relax at the helm and let your team lead.” This only works if your team knows how to lead, either because they learned it before you hired them or you effectively taught them how you want them to lead and then stepped aside and let them do it. In my experience this actually happens less than half the time, likely because

  • they didn’t really learn before you hired them, so couldn’t be successful on Day 1, or
  • You hired people for the amount of money you wanted to spend, and it wasn’t enough to get the right people to begin with, or
  • you told them how you wanted it done but didn’t trust that they’d do it your way, so you reserved most of the decisions to yourself anyway.

Yes, Virginia, the resulting management style is called micromanagement.

And then there’s this one: “They keep screwing up, not getting it right, not doing it the way I wanted it done.” This comes from the leader who has an internal sense of what they want to happen but has failed to communicate effectively to the team, who keep disappointing, thus validating the leader’s inborne assumption that ‘it won’t get done right unless I do it myself.’ The key to this one is ensuring they don’t understand the message so the leader can reassure themselves that their people don’t support them or appreciate them or understand them. We find some level of this leadership behavior in almost a quarter of the companies we work with. And while most of our work is focused on the financial side of the business, money doesn’t get things done. People do. Or they don’t.

Oh, of course, there are those leaders who are simply happier making all the decisions themselves, and perfectly happy with the resulting performance of their team. They like being essential to every part of their company and are satisfied that it will always be only as large as they can personally manage, which is to say small, or lifestyle, businesses.

And finally there’s the longer, more time consuming, more labor-intensive way – hiring the right people for the right reasons, grooming them in the culture of the company, compensating them according to agreed goals and objectives, and then getting the h— out of their way unless they need your advice. You may soon feel like they don’t need you anymore, because everything is running so smoothly you have to spend your time looking for opportunities to grow, expand productivity, plan for tomorrow’s next steps, maybe even plan your successful exit. Bummer.

We are Your CFO for Rent.

Advisory Board Case Study – food for thought

I sit on an Advisory Board for a long-time client (a privately owned company). After a recent meeting I have a few thoughts for those of you who sit on such boards, or run privately owned companies that have access to such a Board, or have considered forming one. This particular Board was formed to help the ownership and management transition from the founder to next generation, as well as helping the very successful company manage their growth more effectively despite the challenges of a very competitive industry.

This particular Board consists of the top management team and three outside advisors – a wealth manager, an estate planning/business attorney, and me, their former financial management coach. As the company struggles with the challenges of a post-pandemic economy, including:

  • voracious need for workers across their network of locations,
  • rising prices for raw materials and labor, and
  • high turnover at entry level positions,

they look to their Board for ideas that might enhance what they’re already doing, bring ideas from other industries and companies that might work for them, and help the company to develop long range plans and operational metrics to achieve those plans. The discussion during meetings is sometimes spirited with inevitable differences of opinion about what works and what doesn’t. But what makes this Board work so well is that those disagreements are conveyed with respect for other views and genuine willingness to listen for those hidden gems that might pop out of a discussion. Sometimes I want to jump in and say “that just doesn’t make sense for these reasons” but I don’t – actually we all don’t – because the discourse is often as valuable as the ideas that come from it. As a result of working with its Board this company has a top notch, relevant strategic plan – that actually gets reviewed, measured and updated – and some really good management metrics to help them address their key operating issues, every week, every month, and every quarter at our meetings. They have maintained profitability throughout the pandemic and are growing every year. And they really know their industry well, even as it evolves dramatically.

Advisory Boards, unlike fully authorized (“fiduciary”) Boards of Directors, don’t carry authority to instruct management on goals, objectives or policies; nor do they have the authority to evaluate or replace the CEO. They offer advice from their depth of experience and management gets to decide if it wants to follow that advice or not. This works well for companies that are able to manage their affairs but still want to grow their management strength and improve their governance practices.

So for privately owned companies that have grown into middle market size (whatever that means to you) Advisory Boards can be the best of both worlds for continued growth, and learning how to make that growth personally successful for their employees and financially successful for their owners. Want to learn more about how that might work in your company? Just ask me.

We are Your CFO for Rent.

Why Real Estate – Part 2

Back in August of last year I raised the question of real estate as a viable investment alternative to all the not so good options available today. Even with the prospect of increasing interest rates that is certain to manifest in the months ahead, we’re a long way from a saving account doing anything other than depreciating more slowly than if it were stuffed in your mattress. To refresh your memory (or go re-read my 8/5/21 post) this was my short list of options:

        • Leave it in the bank or a money market fund and collect a whopping 0.5% per year.
        • Lend it to your bank and get a CD, collect a massive .75% per year.
        • Buy bonds from the US Treasury, ideally the 30-year ones, collect up to 1.8% per year.
        • Buy stocks, mutual funds, ETFs and the like – collect anywhere from +50% to -50%, you just don’t know when – unless you buy smart and simply wait it out.

Or you could try real estate investing. There are a lot of almost empty office buildings on the market, and more than a few vacant restaurant spaces as well. Not so enthused about them? Wonder why? How about a very hot market – multifamily residential properties? We sold ours at 100% profit a few years ago, and they’ve only gone up in price from there. Of course, there’s the need to manage them to make sure they are rented to people who pay their rent, managed and maintained through the inevitable turnover, etc. And then there’s the question of when the neighborhood loses its appeal, or price controls get levied, or homeless housing gets built next door, or …  Don’t want to do that? Neither did I. So, what’s left? A lot, actually. Under the broad heading of “Industrial” you can find warehouses, a hot commodity for the Amazons of the world. Unless they’re not Amazon and they’re in a market that Amazon is gobbling up. That’s the challenge of having a reliable tenant in a reliable market. Many kinds of bricks and mortar are scary for investors in this increasing digital world. Maybe the mattress isn’t a bad idea after all.

OK, one more option – the one we’ve successfully opted for – the increasing need for certain kinds of medical services for our ill and aging population. We know people are getting older, becoming a larger percentage of the slower growth population. We know their need for services is getting larger, not smaller. We know politics isn’t going to stop that, the money supply isn’t going to stop that, and inflation isn’t going to stop that. The need will continue to grow, and where there’s growing need there’s growing opportunity to gain from filling that need. In certain circumstances a property providing medical services can deliver years of reliable, increasing income with virtually no management attention beyond depositing the rent checks. This is what you get when you combine the net-leased property concept with a proven corporate tenant in a market that will only expand over time. Let’s see – growing demand, insufficient supply, reliable supplier of capital from providers who want to run their medical business but don’t want to manage a real estate portfolio. Now THAT’S my kind of mattress.

Call me if you want to know more before my next post on this topic.

We are Your CFO for Rent.

Subscribe to the eNewsletter

  • Sign up to receive articles, the latest blog posts, and helpful tips.
  • This field is for validation purposes and should be left unchanged.

We value your privacy and never sell or distribute email list information.