Prop-Tech in Nigeria is still nascent compared to other industries that have adopted tech into their operations. For example, finance and agriculture have metamorphosed into FinTech and AgroTech respectively. From the term itself, PropTech is a portmanteau of “Property” and “Technology”. Hence, we can readily define PropTech as using technology to solve problems in the real estate industry.Read more about TechHowever,Forbes would define PropTech as simply “businesses using technology to disrupt and improve the way we buy, rent, sell, design, construct, manage and make decisions on property investments.” PropTech is a multi-billion dollar industry. There are leading PropTech startups in Nigeria. They include Eden Life, Estate Intel, Rent Small Small, Spleet, Fibre, and so on. Starting a PropTech is no mean feat at all. It comes with developing and executing the right strategies. In this article, I discuss how you can launch your Prop-Tech startup.
Ensure That There Is a Problem That Needs a Solution
The first step is to identify problems that need solving in the real-estate industry. There is no doubt that Nigeria suffers from inadequate housing, however, don’t be fooled into throwing your net into the sea without first doing your due diligence, which is validating your idea. The question that should be in your mind is: Is there a genuine problem and a genuine solution?Sign up for the Connect Nigeria daily newsletterThe PropTech industry can be tricky. Hence, ensure that there is a ready market willing to use your solution. Experts have advised that having a ready-made market that is in dire need of a solution is all the green lights you need.
Specify Your Niche
The next tip is to specify your niche. If you are known for everything, you will be known for nothing. This statement is a fact in the PropTech world. It is advisable not to muddle your business process with all the niches within the real estate industry. In this age of technology-on-everything, it is easier to assemble two or more niches, but let the world know what you stand for. Nigeria has tech companies that operate in different segments of the industry with the main areas being agent and property value research, property and investments search, agent and PM services, listings and marketing, and finally exchange, finance, mortgage, settlement, and post-transaction.Furthermore, other niches are still nascent within the PropTech industry. They include exchange, finance, mortgage, settlement, and post-transaction. This means there is still an opportunity for new disruptive technology to improve the way the industry operates.For example, many homebuyers are frustrated about not finding out about properties for sale off-market (that is properties available for sale that are not publicly advertised) unless they were in touch with every agent in their local area. Therefore, you can go into property listing.
Count The Cost Of Starting Off
Starting a PropTech is capital intensive. This is why you must know what it is going to cost you to get your idea off the ground. The major block of starting your startup is developing an app that is seamless in its operation and as well carrying out every transaction frictionless. According to a PropTech founder, all that it takes to get started is to build your website and or your app. The SEO must be top-notch as well. Other cost includes marketing. There are basic channels you can use to promote your PropTech startups. They are social media and Google ads.Register to attend the Connect Nigeria Business MixerAlso, registering your company and business name, setting up a domain name, and as well as administrative and legal costs are to be considered.
Use The Right Technology Process
Having the right processes for your technology build and any amendments is critical. To set up a successful PropTech startup, you must be deliberate about details. This includes specifying your technical requirements, which include design, User Experience (UX), and User Interface (UI) as well as app and website functionality. Your website and app functionality must include speed and the ability of users to navigate the process easily.
Use Various Marketing Channels
PropTech startups thrive on marketing. If you don’t tell people what you do, nobody will know that you exist. You need to have a marketing team or agency on your side that can help you reach out to those that need your services/solutions. Also, having a PR consultant isn’t bad at all. Use an experienced social media or Google consultant or, if you’re going to set up paid advertisements yourself, make sure you learn as much as you can about reaching the right audiences.
Final Words
Building and growing a successful PropTech startup rely on solving housing and property problems. However, you have to define your niche, and with technology, you can streamline two or three niches, but don’t make the mistake of incorporating many niches as possible. It can be overwhelming for you and as well confusing to your audience. Also, your technology process must be top-notch, user’s friendly, and streamlined too. Finally, marketing through various channels is advisable as PropTech relies on heavy publicity. Featured Image Source: Fast InvestGot a suggestion? Contact us: editor@connectnigeria.com
