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Is Your ROI Target Killing Your HMO Business?
Manage episode 432925330 series 3416806
In this episode, we're discussing something I believe is incredibly important: return on investment (ROI) or, as I prefer, return on capital employed (ROCE).
This is undoubtedly one of the most critical metrics we should consider when appraising and analysing deals in our business. However, in my opinion, and I need to get on my soapbox here, too many people are excessively focused on this target, setting standards that are simply too high. This, in fact, hinders the future potential and performance of their business.
Now, that might sound counterintuitive because surely the better the ROI, the better the ROCE, the better the business, and the more you can grow your business. So in this episode, we’re going to discuss that, including:
- Understanding ROCE and its limitations
- The pitfalls of overly high expectations for ROCE
- How to balance ROCE with other metrics
- Alternative strategies for ROCE
- The benefits of long-term investing
Please leave us a quick review on Apple Podcasts or Spotify if you find this episode useful.
Got any questions? Ask us in The HMO Community Facebook Group or follow me on Instagram @andygraham.hmo for daily HMO tips and advice!
If you want to join my 1-2-1 mentoring program, you can enquire here.
New to HMOs? Join The HMO Roadmap on a premium plan and unlock our award-winning library of 400+ resources to help you start, scale and systemise your HMO business.
321 episoder
Manage episode 432925330 series 3416806
In this episode, we're discussing something I believe is incredibly important: return on investment (ROI) or, as I prefer, return on capital employed (ROCE).
This is undoubtedly one of the most critical metrics we should consider when appraising and analysing deals in our business. However, in my opinion, and I need to get on my soapbox here, too many people are excessively focused on this target, setting standards that are simply too high. This, in fact, hinders the future potential and performance of their business.
Now, that might sound counterintuitive because surely the better the ROI, the better the ROCE, the better the business, and the more you can grow your business. So in this episode, we’re going to discuss that, including:
- Understanding ROCE and its limitations
- The pitfalls of overly high expectations for ROCE
- How to balance ROCE with other metrics
- Alternative strategies for ROCE
- The benefits of long-term investing
Please leave us a quick review on Apple Podcasts or Spotify if you find this episode useful.
Got any questions? Ask us in The HMO Community Facebook Group or follow me on Instagram @andygraham.hmo for daily HMO tips and advice!
If you want to join my 1-2-1 mentoring program, you can enquire here.
New to HMOs? Join The HMO Roadmap on a premium plan and unlock our award-winning library of 400+ resources to help you start, scale and systemise your HMO business.
321 episoder
Alla avsnitt
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1 Unfiltered: HMOs & Growing My Property Biz (with PropertybyKazy) 49:17

1 Struggling to Grow Your Property Business? Here’s What Actually Works with Rebecca Alcock 44:36

1 From 3-Bed Terraces to £3M Projects: Inside a £12k PCM Deal with Emma Estill 49:55

1 How I Cut Risks To Maximise Profit and Scale Faster 47:04

1 0-10 HMOs: 5 Key Lessons for Bigger, Better & Faster Results [REWIND] 25:42

1 Business, Builds & Balancing It All #BizUpdate 34:01

1 The 60-Second Check: How to Instantly Filter Bad HMO Deals Out 28:32

1 You’re Not Scaling — You’re Spinning Plates (Here’s How To Hit £10K Faster) 26:57

1 Scaling from 5 to 50 HMO Rooms — What Would I Do Differently? 35:58

1 When to Sell Your HMO (And Why Holding On Could Be Slowing You Down) 25:10

1 Funding HMOs in 2025: Inside the Lender’s Mind with Together Finance 41:05

1 The 5 Strategic Mistakes Still Holding Back HMO Investors in 2025 30:48

1 Planning Permission Explained: When You Need It and When You Don’t 48:15

1 Base Rate Reduction, HMO Lending & Why Your Rooms Might Take Longer to Fill – with Ellie Broadhurst 28:05

1 Beyond HMOs: I Get Real About Building Wealth, Health and Family 58:37
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