Opinions expressed by Entrepreneur contributors are their own.
If you’re new to the short-term rental industry, you may find launching an Airbnb business quite challenging. The ins and outs of the business may confuse you, and you might even get scared to go further, especially if you don’t have properties to use for your listing.
But just like any enterprise, Airbnb is learnable. And there are tricks you can use to start and thrive in the business. I’m sharing four of the most powerful tips I have in my arsenal so you can use them to create your own Airbnb business.
Related: 4 Reasons Why Short-Term Rentals are the Future of the World Economy
Tip #1. Prioritize progress over perfection
Using whatever resources you have is better than waiting before making a move. To illustrate this, I want to share my experience when I first started with Airbnb in 2017.
During the first few years before launching, I didn’t have much. I knew I wanted a property rental business but could only afford rent. I did find my first rentals: a tiny two-bedroom and a one-bathroom unit that weren’t in ideal neighborhoods.
These properties were also very basic. They didn’t have pools or game rooms, and nothing was special about them. The only edge they probably had over other Airbnb units in the same area was that they were cheaper to rent. That was the best I could do at that time, but I still started anyway.
Now I have more properties, which are way better than the ones I had when I first started. I’ve also earned my first million with them.
Lesson: Don’t stress too much about getting everything perfect. Just focus on moving forward.
Tip #2. Surround yourself with the right people
“Bad company corrupts good character.” This famous adage reminds us to be selective about who we keep in our lives. As humans who love companionship, we want to be with other people. But this also means we are easily influenced by who we are with.
If you’re constantly around people who love to gamble, you’ll eventually want to gamble with them too. If your friends don’t have plans to grow, you won’t be motivated to improve either.
By the same token, if you want to succeed, you must be with people who understand your mindset. It’s better to find people who are more successful than you. Because when you stick with them and follow their advice, you’ll be at the same level as they are and will continue to seek growth.
Related: 10 Powerful Attributes of Insanely Successful People
Tip #3. Always think ahead
Planning for the near future is great, but thinking further will give you a better head start. For example, someone came to you to sell their property. It’s an abandoned house at the end of the street. And they’re selling it to you for a much lower price because you’re a friend and they’re in a hurry to get the money.
And you happen to have just the amount (although it’s originally for your dream vacation). Your family says it’s a bad decision because the property is pretty much useless. But you’re thinking otherwise.
As someone who thinks ahead and focuses on long-term effects, you decide to buy it. Then you renovate it so you can use it for Airbnb. Now you have a passive income business that lets you earn even while on vacation, and you’ll even get to enjoy it for the years to come! This is what thinking ahead means.
Related: Franchise the Unexpected: 4 Franchisors Thinking Ahead
Tip #4. Leverage other people’s money
Want to launch a business but lack the budget? Start looking for people, banks or institutions that can lend you some! In the business world, this is a legitimate strategy called “leveraging,” and it’s how the rich get richer.
Most people base their potential on the capital they have. “No money = no business.” But resourceful people don’t follow this rule. For them, “no money” means looking for those who have it and getting them to sign a deal so they can use it as capital.
Related: How to Start a Business With No Money
They can always pay off the debt with the initial profits. Once it’s paid, they live off an already established business that they now completely own. Of course, this is a very simplistic explanation; there’s more to it than meets the eye. But leveraging is an excellent option if you really want to get started.
Bonus tip: Sublease to your advantage
Since we’re already on the topic, did you know you can use the same technique for your Airbnb business? If you don’t own properties to list and don’t have enough money to buy one, why not look for people who do?
This is a strategy called Rental Arbitrage, also known as subleasing. It’s where you look for properties for rent, get in touch with their landlord, and ask them if you can use their property for your short-term rental business. If they say yes, you sign a lease, and you’re good to go!
So are you ready to get that Airbnb business launched and expanded? Practice these four powerful tips and use them to create your own successful Airbnb business now and in the years to come.