Proptech-PR analysis – ‘Why commercial ideation is key for growth’ – CEO Andrew Stanton gives advice for proptech start ups and scale ups
Often I am asked what it is that I do as CEO of Proptech-PR ‘A consultancy for proptech founders’, well part of it is giving founders insights and strategies for building successful proptech businesses. As a consultant and analyst specializing in commercial growth, operations, and sales strategies for proptechs I often encounter the same critical flaw: a lack of what I call “commercial ideation.”
Having met over 1,000 founders, critiqued over 450 decks for them and had 134 founders as direct clients whose companies have a combined market cap of £1.47 Billion, I know if a brand will be a cash burner or a cash generator, if a business will get investment or has the capability to scale and get to exit. (Picture Andrew Stanton CEO of Proptech-PR & Founder Proptech-X)
The Most Common Flaw in Proptech Startups
The most frequent mistake proptech startups make is developing solutions without a clear understanding of whether anyone will pay for them. Many founders are so focused on building their product that they neglect to verify market demand. This oversight often leads to difficulties in acquiring clients and securing funding. The result? A product/service nobody wants.
Startups tend to spend time & money, sometimes years and millions of pounds/dollars developing something while operating in “stealth mode,” only to discover upon launch that there is no demand for their product. They should have conducted more market research from the beginning. Before investing significant resources, they should have asked potential users, “Would you pay for this?” If the answer is no, it’s a sign to pivot or stop altogether.
Validating Your Business Idea
Particularly in today’s economic climate, where funding is super-tight, validating a business idea is more crucial than ever. Startups should determine if there is a repeatable demand for their service. If they cannot confidently say that customers will pay consistently, they shouldn’t proceed.
It’s harsh but true. Many founders need to hear the blunt reality rather than have their ideas blindly supported. They need to ask the hard questions from the beginning: “Would you pay real money for this idea?” If they get a lukewarm response or vague encouragement, it often means that the idea doesn’t have the commercial legs to stand on.
Building an MVP: A Real-World Example
A classic example of validating an idea before building it is the story of the first person who struck on the idea of selling shoes online. Instead of creating a full-fledged e-commerce website from the start, he ran adverts asking people if they would buy shoes online. When people responded positively, he bought shoes from stores and shipped them directly to customers. This approach confirmed the demand for his business model without significant upfront investment.
Roome ask is it right to offer cash prizes and free accommodation to students who apply through clearing?
Co-founder of Roome – Owen Redman (pictured) in the wake of the current squeeze on finances, both for students and Universities has spoken out on what he sees as exploitation of undergraduates, commenting that,
‘In a desperate attempt to fill course places and attract more students, several universities have begun offering students to be entered into draws for free accommodation and cash prizes to students who apply through clearing.
For example, the University of Gloucestershire and their prize draw for free accommodation for students registering for their “clearing VIP” mailing list. And St Mary’s University, Twickenham, promising a guaranteed place in university accommodation for those that apply before 22nd August – could this cause a rush of students that creates an accommodation deficit?
It seems Universities are doing everything they can to ‘lock down students into places’, as they need more students to avoid a further financial pressure!’
This same topic was covered recently by BBC News,
‘A spokesperson for the University and College Union (UCU) said students should be able to choose the best courses for their needs rather than being swayed by marketing ploys.
“The chaotic scramble to hoover up students through clearing shows why universities need a new funding model,” said UCU General Secretary Jo Grady.
Other universities have used similar marketing techniques to attract all students, not just those coming through clearing. Among these, Nottingham Trent University offered a £250 Amazon voucher for any new students signing up to selected accommodation.
The union links such offers to the wider university funding crisis which has led to suggestions that some universities could fail financially.
“The over-reliance on tuition fee income is causing huge financial instability across the sector,” said Ms Grady. She wants the government “to provide emergency funding to protect all jobs, courses and institutions at risk and end the failed marketized higher education experiment.”
This is just not right? Students need a better deal
Owen Redman whose company Roome looks after the interests of students and housing, goes further with his analysis,
‘Students shouldn’t be deciding on their University down to cash or accommodation rewards, it should be down to the right course and university for them.
Not only now could this cause a further imbalance by students trading up, or going for courses and universities with the best offers, which may result in capacities being filled and students losing out on their initial offer they would have rejected to go through clearing.
October 27th/28th 2024 – The Global PropTech Summit, will be held in Riyadh, Saudi Arabia.
A landmark event aimed at merging the realms of technology and real estate to shape the future of the industry. As part of Saudi Vision 2030, this initiative supports innovation, technological advancement, and sustainable development within the real estate sector.
Vision and Goals
The Global PropTech Summit aligns with Saudi Vision 2030’s objectives of fostering a vibrant society and a thriving economy. It seeks to create a conducive environment for growth, encourage job opportunities, and attract investment in PropTech, the fusion of technology and real estate.
PropTech: A Revolutionary Intersection
PropTech, or property technology, represents the innovative convergence of technology with real estate. This field encompasses the use of advanced technologies like artificial intelligence (AI), the Internet of Things (IoT), virtual reality (VR), and data analytics to enhance property management, sales, and development processes. The Saudi government aims to position the Kingdom as a global leader in PropTech by promoting sustainable, tech-driven real estate practices.
Market Overview and Investment Potential
The PropTech market, valued at approximately $25.1 billion in 2021, is projected to grow at a compound annual growth rate (CAGR) of 15.8% from 2022 to 2030. This growth reflects the increasing demand for technological solutions in the real estate sector, ranging from smart building management systems to digital transaction platforms.
Saudi Arabia, with its favourable investment climate and robust economic growth, offers significant opportunities for PropTech innovations. Riyadh, the nation’s capital, serves as a strategic gateway connecting Asia, Africa, and Europe, making it an ideal hub for PropTech development.
Themes and Focus Areas of the Summit
The Global PropTech Summit will cover several key areas critical to the future of real estate, including:
Smart Real Estate: Integration of smart technologies in building management.
FinTech in Real Estate: Financial technologies enhancing property transactions.
Sustainable Practices: Promoting environmentally friendly and energy-efficient construction.
AI and Automation: Leveraging AI for property management and customer service.
Virtual Reality: Using VR for property visualization and development planning.
Strategic Goals and Mission
The Summit aims to:
Promote Innovation: Encourage the development of new technologies and solutions.
Foster Knowledge Exchange: Provide a platform for industry leaders and experts to share insights and best practices.
Enhance Investment Opportunities: Connect startups with investors and venture capitalists.
Raise Awareness: Highlight the benefits and potential of PropTech in transforming the real estate sector.
Showcase Success Stories: Feature innovative projects and recognize outstanding contributions.
Andrew Stanton Founder & Editor of 'PROPTECH-X' where his insights, connections, analysis and commentary on proptech and real estate are based on writing 1.3M words annually. Plus meeting 1,000 Proptech founders, critiquing 400 decks and having had 130 clients as CEO of 'PROPTECH-PR', a consultancy for Proptech founders seeking growth and exit strategies. He also acts as an advisory for major global real estate companies on sales, acquisitions, market positioning & operations. With 100K followers & readers, he is the 'Proptech Realestate Influencer.'
