It is a well known fact that businesses implementing proptech will have to face several challenges as they try to transform the traditional real estate space. Understanding the complicated relationship between the end-user and buyer, being strategic in how they disrupt and develop support within the industry can help businesses to position themselves as leaders in this growing sector
Fremont, CA: The proptech industry is increasing and generating significant venture capital interest, and many people are getting involved in it. But lately, so many different things are being categorized under the term proptech, from construction tech, collaboration tools, IoT devices, tenant experience apps, amenity apps, operations, and property management platforms, marketplaces, and many more. This has led to the enterprises with tech-enabled platforms strategically deploying services using technology to help them scale, making it less of vertical and more of a change that moves horizontally across industry sectors, business categories, and functions.
Defining a proptech customer can also be difficult as the questions arise if it is the employees in a particular commercial building, individual or business leasing space in a building, or if it is the building owner, the developer, or the property manager. The answer lies in the developing technology and who is paying behind it; therefore take time to identify who the target buyer and end-user is and who gets the ROI.
Proptech offers substantial financial opportunities for emerging and existing companies in real estate, development, construction, and technology spaces. However, being an exceptional and novel industry will present specific challenges.
Here are three tips to better manage Proptech and reap its benefits:
Smart Disruption
Proptech can infiltrate industries that had previously resisted the influence of high technologies, making it ready for forward-thinking companies to look for opportunities in areas where the industry is already used to paying. After establishing some foundational customer pulls and awareness in the industry, move upstream to different customers with the company’s growth.
Network Expansion
Proptech is closely tied to the aspects of real estate, unlike other technologies that are technology-agnostic. Companies collaborate, compete and sell into a small, tight-knit community, and this can serve well if one or two companies adopt and advocate the technology as it will help create opportunities with other organizations they do business with.
Finding a few early adopters that are well connected in the industry can be an organic way to gain acceptance in the community and, with a small amount of capital, consider attracting strategic investments from real estate companies.
Apart from venture capitals investing in the proptech ecosystem, developers and building owners are also partnering up in proptech focused funds or setting up their own.
Target Multiple Customers
While focusing on residential, commercial, or B2C, always keep the end-user a priority to drive the bottom line and do not forget who is paying for the product. The user and the buyer are not the same in most cases, and a successful proptech company will have to pave equal attention on both. Working with a set of customers and finding ways to attract various groups towards their property is essential for early proptech entrepreneurs to leverage their business growth.
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