THE DIAMOND model created by Paul Smith can provide you with a strong backbone for your SA business. It’s the model which we have followed to achieve the success that we have today. Our business systems and protocols will create a repeatable system for the sustained development of your SA business.
There is no one single ‘optimal’ SA strategy. Your strategy will depend on the services being offered, the environment, the location and the guest type for your business.
The first D stands for ‘Discover’
Think about which strategies and property types will work in your chosen Diamond Mine area? Where is the best place to put your SA? The Discover phase is all about top level strategic research. You will need to look at:
- planning requirements
- other operators
- exit strategy
- supply of units in close proximity
- target market
- booking system
- deal flow
The I is for ‘Interrogate’
Interrogate the systems that you have available to
- check demand
- verify the optimal price per night
- identify key costs (such as OTA and credit card fees, housekeepers, linen and laundry)
The A is for ‘Acquire’
There are seven different ways that we acquire units for our SA business. The three most frequently used acquisition methods are:
- to buy
- R2R on commercial properties
The M is for ‘Marketing’
Marketing needs to be in the centre of all you do in the SA business. Where and how will you market your propert(ies)? Internet and technical marketing skills are crucial for obtaining and retaining customers.
The O is for ‘Operations’
This refers to all of the practical and physical things that need to be in order to allow a guest to enjoy your property whilst making your business a profit.
The N is for ‘Numbers’
As an absolute minimum, your business will need a monthly report by property which needs to be reviewed and, crucially, you will need to take action as a result of that review.
The final D is for ‘Duplicate’
Once you’ve got your first successful SA in an area, you will want to duplicate the model with the same type of property in the same area.