The advice of slow playing it goes counter to so many things in my life. I’m usually a proponent of ripping off the band-aid and making a change. I’m the guy that texted my now wife right after the first date and said, I had the best time, I want to see you again tomorrow. I have no chill, clearly…it worked though. So when it comes to making widespread change in an industry, why do some industries change so quickly and others require a long time?
I was talking to a VC friend who spends a lot of time in the early real estate technology and construction technology space. He said something really interesting. In the real estate industry, the faster they come on, is the faster they fall. This industry requires gentle disruption, play slow and cooperatively and over time the industry will come your way. So pound the tables and call everyone old white haired dinosaurs and its likely you’ll be shunned. Go gently and play nice in the sand and the industry will come to you. That seems obvious but to so many new entrants and companies, it’s not. I have seen time and time again, people chastise real estate professionals as dinosaurs, unwilling to change and old school. To that inquiry, I respond - “why would they fix what ain’t broke?” Most successful real estate professionals don’t stay up at night worrying why they aren’t 10% more efficient at their jobs. If there was a systematic failure, they would plug the holes. Just like anyone else, they are people that respond to incentives. Show them a systematic failure and they’ll respond accordingly. If you can help them make more money (meaningful amounts), or save them money (consistently and with proof) and you don’t under-estimate the time and change management costs (which are real things that are hard to measure), then you will have a chance at selling into the real estate industry. That’s the calculus. What I see FAR TOO OFTEN is that companies say they can save real estate folks time and money but the upfront transition, training, adoption, etc. is so massively understated that it sours the potential of change.
So when you’re building a company in this space and you want to attempt to disrupt the status quo, be super thoughtful about how you’re approaching the market participants. They won’t respond well to a brazen approach. They might at first decide to work with you but what you won’t see is the undercurrent and closed door conversations that are sabotaging your business. One bad experience and word will fly around town that it’s not worth it. If you go in with humility, a cooperative effort, nudging and leading the horses to water, they’ll eventually drink and the change will be long lasting. The disruption is like unraveling a quilt, don’t pull it too hard, unhinge one thread at a time.
This is SO true...great advice to new entrants!