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Business things

Business models

I realise that business models only excite a small portion of the population – most of us are focused more on the outcome of any transaction – what we get, rather than the working parts inside that transaction.

I happen to agree with Dale Carnegie – the other persons perspective is vital.

Hence, I add this section – a way to compartmentalise my business yammering, while still making it available. My personality tests on the big 5 aspects reveal I am very open. What does that mean?

For the longest time, I have considered open sourcing this businesses financial data. I am not quite there yet, but here are a few reflections from my data collection.

Dunedin sells between 2500 and 3200 houses per year – with much less market fluctuation than many cities.

Approximately 1 out of 3 property sales have a building inspection clause.

Dunedin has 11 private building inspectors.

Each inspection takes 1.5 – 2.5 hours.

Writing a report can be done with a checkbox approach in half an hour or so – I don’t use one of those systems – It limits the value of what can be said.

My report writing/research time can vary from 1.5 hours (when I am absolutely on fire and focused!) Through to 16 hours for some of the very hairy ones. (ever tried to digest and understand a 200 page LIM?!)

 

That gives enough information for you to roughly calculate what building inspectors can earn – but you should also be able to work out that we have a very real theoretical cap on the amount of work we can do.

This new model aims to solve that problem – necessity is the mother of invention. At 10 inspections a week, I am forcing myself to be more efficient than I normally am.

In simpler terms, I am trying to swap a high value low turnover business model, for a significantly lower value, but much higher turnover business model. More work? Maybe, but more scalability? Yup.

Hit me up with any questions.

By jonno

Residential housing expert who speaks fluent Builder, Quantity surveyor, Investor and Home Buyer.