As an entrepreneur looking for an investor in your business, you might want to consider a family office relationship. Family offices manage the financial and investment side of an individual, single family, or multiple families. When you pitch your business to a family office, there are a few key things you should be aware of before you proceed. 

Alignment

Family offices typically have a niche that is based on their interests, experience, and values. When looking for a partner in a family office, make sure you research the company’s mission, vision, values, and interests to make sure your goals and vision align. These things must align in order for there to be a mutually beneficial investor-partner relationship, and family offices will only support businesses that share the same basic core values. 

Long-term relationships 

The mission of most family offices is to cultivate long-term relationships, because they would much rather have long-term relationships with potential for future growth rather than one time investments. The alignment of core values from the onset goes a long way in paving the way for a long and successful partnership.

Funding

Family offices have more flexibility in funding opportunities for entrepreneurs.  They use their investment flexibility and business experience to provide essential financial management to families and partners that benefit all involved. Their funding is also not based solely upon returns, but on relationships that maximize profitability for all involved by respecting the human element that is inherent in all partnerships. Be sure to prepare to show a family office not only your financial information but also your vision for growth. 

Team

The family office focuses on a full team approach.They will want to know what your business can bring to their team, but they will also want to show you what they can bring to yours. A key benefit that a family office has to offer is the experience that it can impart to the entrepreneur. Cultivating a team environment from the beginning is important. Having a family office relationship automatically gives you a team that thinks the way you think and can help grow your business.

At Scandia, we are a family office working to build value through long-term, thoughtful investments. If you would like more information on family offices and what they can do for your business, reach out to us to start a conversation.

Family offices are increasingly popular for businesses because they are held to the same standards as banks, finance firms, and other capital groups. Family offices also bring a unique alignment with your core values so they are able to bring more value and flexibility to the table for your business. 

Long-term investment 

Family offices typically would much rather have long-term relationships than one-and-done investments. This makes this time of partnership a win, win for both parties, and this is one of the main reasons that it is imperative that your goals line up with the family office’s interests and values. If those basic interests align, this is an attractive long-term investment for both parties.

Mentorship

The family office also brings a mentorship to entrepreneurs looking to expand their businesses. A key benefit that a family office has to offer is the experience that it can impart to the entrepreneur. Because the founder and entrepreneur are often already aligned, the mentorship relationship can prove to be invaluable. As anyone who has started their own business can tell you, there are so many questions and challenges that arise in those first years of business. Having someone in your corner, who thinks the way you think and has the hindsight of having already walked in your shoes, can be an enormous benefit to your business. 

Flexibility and Adaptability

Family offices also provide much more flexibility and adaptability to a business. They work to foster environments that maximize profitability for all involved by respecting the human element that is inherent in all partnerships. The focus in this case is to view each relationship as a partnership where both sides bring value to the overall goal. Family offices can add value to each and every investment and help their partners conquer obstacles that may arise as well.

At Scandia, being a family office allows us to maintain a high standard of excellence while also understanding that we are partnering with real people. Above all, we strive to be flexible and adaptable while relentlessly pursuing excellence. 

If this vision aligns with your business, reach out to us to start a conversation. We are proud of our thoughtful partnerships and investments. You can learn more about our current investments by viewing our partnership portfolio and real estate holdings.

When you mention “company culture,” images of fancy buildings, daily catered lunches and endless open space with fuse ball tables and video game hubs quickly jump to the forefront, especially in tech corridors like Silicon Slopes. But company culture goes far beyond swanky lounges and employee fitness facilities that rival the fanciest gym in town. More than anything, company culture is about what you believe, what you do and how you treat your people. Your culture is what you company actually is, rather than just what you say you are.

 You can reap the biggest rewards with the least amount of capital investment by simply improving your company culture. Your people are your greatest resource and investments in them will reap dividends in the form of improved morale, a motivated workforce, easier employee recruitment and retention, and increased profits.

 Know your core values and stick to them

Your culture is ultimately a reflection of the values you live and the tone that you set as the leader of your company day in and day out. If you are building a new company, establish your core values early on and stick to them. If you are further along in your organization’s life cycle, take the time to really analyze your company’s mission and values and determine if they are still applicable to your specific goals and circumstances. Your values are not set in stone — they are a living document that can be adjusted as your company changes and grows.

Having a piece of paper stating values you do not uphold is not fooling anyone — your employees included. For example, if “family” is a core value, your employees will know it by your decisions both big and small— and their families will know it. If “hard work” is a core value, your team and customers will see it reflected in your company from the very top down. If your stated values are not currently an accurate depiction of what you hold most important as a company, your company’s culture will benefit from changing them. By more honestly and transparently communicating the priorities of your company, your current and potential future employees’ expectations will meet reality, creating a more harmonious work environment.

 Invest in your surroundings

At Scandia, we have learned that an investment in your surroundings is really an investment in your company culture. Whether that means moving from a delipidated building to a more modern office, making cosmetic improvements to a dated office space, or improving your landscaping and green space, you are showing your employees that you are committed to improving their daily experience and are invested in improving morale.  

 As with making sure your core values are an accurate representation of what is truly most important at your company, it is also vital that your surroundings are in line with your expressed core values. If you say that are committed to being cutting edge or modern, but your office space looks like it is stuck in the 1980’s, it will make it difficult for your employees or your customers to believe you. If you are a company that thrives on creativity, take an honest assessment of your work environment to determine if you’ve built a space where creativity thrives or, if alternately, is stifled. If your surroundings do not live up to your company’s core values, you do not have to go into massive debt or take on expensive renovations to see an improvement in your company culture. When done thoughtfully and intentionally, even small, inexpensive changes like paint, new artwork or refreshed common spaces can make a big impact in moving the needle toward your ideal company culture until you can afford to make bigger investments.

 Invest in your people

Most importantly, identify meaningful ways to invest in your people. Doing so will ensure you build a strong and lasting company culture. These investments can be monetary or investments of time and energy. Besides the obvious of increasing salaries and benefits, look for other tangible ways to invest in your team. Seek out opportunities to invest in your employees’ knowledge base through conferences, workshops and continuing education. Grab pizzas for your team and watch free webinars over lunch for some inexpensive team bonding in the process. Celebrate achievements and look for opportunities to show your appreciation for the work they are doing to grow your company.

 No matter the size and scale of your company, the one thing you can always afford is to be flexible. By extending flexibility to and expecting flexibility from your employees and contractors, you can improve your company culture while also increasing productivity. Because of COVID-19, we know now more than ever the ways employees can benefit from the flexibility of working remotely, but there are also a variety of other ways you can be flexible with your team. By adapting your team’s structure and workflow to allow for flexibility in the case of family emergencies, schedule changes and unusual needs or challenges, you foster an environment for your employees and subcontractors to rise to the occasion and be flexible to meet the needs of your company and customers.

 At Scandia, we’ve successfully grown and scaled a variety of businesses. Our success has been fueled by establishing a strong company culture. Want to see how we can help you build yours? We’d love to talk!

Real estate investing is a valuable tool that can enable you to build your own personal wealth. By investing in commercial property, you can create passive income that will pay dividends for decades to come. 

Whether you are researching the process of purchasing your very first commercial real estate investment or you are seeking to rapidly expand your real estate portfolio, read on for proven strategies from a family office that has successfully grown and scaled a diverse real estate portfolio.

Bigger Investments

When choosing your ideal real estate investment, look beyond the price tag and consider the potential revenue generation and future potential buyer should you choose to sell your property. More units and square footage will often mean more opportunities for passive income generation without a significant investment of time and energy.

Think Long-Term 

At Scandia Company, we are staunch believers in building value through long-term, thoughtful investments in real estate holdings. Rather than looking for a property to quickly flip and sell, we have found financial growth through investing in properties that have the potential to generate passive income for years and even decades to come.

Diversify

Diverse real estate portfolios are better positioned to weather economic downturns. While developing a specialty within a specific property type has its advantages, it is wise to diversify your portfolio so that it includes several asset types to make your passive income more recession proof. If your real estate holdings are all within one specific type of property consider expanding into other areas such as multi-unit residential properties, free standing office buildings, industrial parks, or retail complexes.

Location, Location, Location

Instead of seeking out the cheapest deal, your best value will be in discerningly finding the best deal. There is a good reason that it has become a cliche to choose a commercial real estate property based off of location. Specific properties within each market and sector will perform better than others due to the supply and demand levels in their respective locations. To make the best investment, research the asset types that can be most profitable in your desired location rather making your decision solely based upon price per square foot.

Hard Work and Discipline

At the end of the day, no matter how strategic and well played your real estate investment decisions are, nothing will ever replace the basics of hard work, discipline and rigor. As a property owner, real estate developer, or landlord, these three fundamental building blocks are crucial to success. At Scandia, we have learned that tenacity and disciple are vital to weathering the storms that naturally come with being an investor and business owner. 

If you’re interested in learning more about Scandia Company’s approach to investing in real estate holdings, our portfolio and how we can help you grow your own, reach out to us.

While the new year is shaping up to have its own unique challenges, it also presents opportunities for business owners. Whether you are just now starting a new company or are seeking to scale your business, 2021 could be the year you see significant growth.

Here are three helpful tips from a family office that has successfully scaled a variety of businesses. 

Double Down on the Customer Experience

During times of uncertainty, it becomes more important than ever to deliver a superior customer experience. No matter your industry, 2021 is the prime opportunity to focus on the core concepts of communication, consistency, relationship building, and customer service. Take the time to really understand your customer and their needs.  Doing so will allow you to find and reduce areas of friction, increase loyalty, and better market to grow your customer base to make this year your company’s best year yet.

Invest in Digital

The digital world is changing at a rapid rate, but one thing is for certain -- businesses are becoming increasingly dependent on virtual environments, online tools and digital communication methods. Investing in digital will look different depending upon your industry, business goals, and where your company is in its life cycle. Perhaps it’s time to upgrade a dated website, create an app that provides a more seamless user interface, or it’s establishing a social media presence for your new company. Take a thorough assessment of your company and how you can use digital tools to better market your business, improve the experience of your existing customers, or increase the efficiency and productivity of your team.

Define Your Target Customer Audience and Actually Target Them

Once you have taken the time to understand your customer, finely tuned your customer experience, and have invested in the technology needed to make your business successful, it’s time to sit down and thoughtfully define your target audience so that you can better utilize your marketing efforts and dollars to grow your business. Consider aspects like your ideal customer’s demographics, job title, industry, behaviors, and interests and put your marketing efforts to work to target your ideal customer and only your ideal customer. Depending upon your industry, geographic location, and target audience, that could be through highly targeted social media ads, paid search ads, virtual trade shows and webinars, or more traditional methods like carefully selected billboard, TV and print ad placements. Approach your advertising like an investor and calculate the acquisition cost of each new customer. Once you find a mix that works and shows a solid return on investment, treat your marketing dollars as investment in your own business rather than throwing marketing dollars away year after year.

If you’re interested in learning how Scandia can help your business grow in 2021, let's talk. We are proud of what we have been able to achieve through our thoughtful partnerships and investments. You can learn more about our current investments by viewing our partnership portfolio and real estate holdings.

We are all familiar with the typical new year’s resolutions like exercising regularly, eating healthier and saving money, but have you considered the health and growth of your business for your 2021 resolutions? 

As a family office who has successfully grown and scaled everything from service to technology companies, we have identified a few key actions that can increase the success of any company, regardless of your industry. Here are five meaningful changes you can make in 2021 to successfully grow your business. 

Build Your Company Culture

We have found time and time again that a company’s culture works from the inside out. By failing to establish a strong company culture and investing in it, you are creating a recipe for low employee morale and poor customer experience. Your company’s culture is more than just a set of values on a piece of paper. It’s vital that you practice what you preach both internally and externally. Take an honest assessment of your company’s core values and mission and look for opportunities to pour into and build upon those foundational elements. An investment in your culture is an investment in your people and the long-term success of your business. 

Improve Your Customer Experience

The most successful businesses, no matter the sector, are built upon strong relationships where the customer knows they can rely on you to work in their best interest. Look for opportunities to improve your customer’s experience. Find areas of friction and reduce them by investing in additional manpower, upgrading technology, or improving the user experience of your existing processes. Take the time to really understand your customer’s journey. Making even seemingly minor adjustments can result in happier, more loyal customers and bigger dividends. 

Communicate, Communicate, Communicate

If you choose a guiding word for 2021, we recommend this one: communication. One of the guiding principles in every business we have successfully grown and scaled is communication. Look for opportunities to improve your communication both internally and externally. We have found that communicating efficiently, effectively, and often has been key to building customer loyalty and employee morale, ultimately resulting in increased profits and business growth. 

Invest in Technology

If we have learned anything from 2020, it is that technology is a critical component of doing business in a world that is increasingly moving to periods of remote working. No matter your industry, thoughtfully investing in technology that meets your company’s specific needs will allow you to achieve your business goals and provide both your customers and employees with a more seamless, efficient process.

Empower Your People

As a successful business owner, you cannot do everything yourself. A crucial key to that success is to surround yourself with the right people to get the job done. As your company grows, it becomes increasingly important to empower your team and equip them with the tools they need to succeed. In 2021, look for opportunities to empower your people through personal and business development opportunities, increased decision-making power, generous boundaries and established growth paths. When your employees are given the permission and latitude to take ownership of their work and customer relationships, you’ll see increased productivity and passion and a better overall experience for your customers.

No matter which of these resolutions you make in 2021, you’ll be taking an important step toward investing in your employees, improving your customer’s experience, and successfully growing your business. If you’re interested in learning more about how we’ve helped our partners grow, reach out to us at Scandia.

When someone starts a new business, looks to grow an existing one, or is looking to make an investment, there is really only one method that is truly effective. No matter what strategic or financial advice you receive, nothing will ever replace the basics - hard work, discipline and rigor.

Scandia is a private family office accomplished in achieving high growth returns and successfully scaling companies through rigorous discipline while remaining compassionate and partner-centered. We have learned a few things over the years, but the one thing that rises is above it all is dedication to these key basic principles.

Unlike venture capital and private equity firms, family offices have unparalleled flexibility in who we fund, how we fund them, and what we deem a successful investment. We are not limited to a handful of investment options. We are a private wealth management company specializing in real estate holdings and investments in service-related companies, but we have the latitude to invest in any project or investment opportunity that we feel aligns with our core values and will result in a mutually beneficial investor-partner relationship.

This flexibility is also key in looking at a new business venture. Making sure your goals and basic culture align with your investors is critical to the overall success of your business. What it all boils down to is simple. Look for the opportunities that make the most sense, partner with people to understand your business and your culture, and then put your heart and soul into the new pursuit. Sounds easy? Not exactly.  It takes a strong work ethic and commitment to a disciplined approach to make a business thrive, but if you follow these practical rules, you’ll be surprised how quickly the stars align. 

At Scandia, we are relentless in our pursuit of excellence. We have a proven track record of achieving high returns and successfully scaling businesses all while remaining compassionate and empathetic with our partners, business operators and real estate developers. We do not approach our investments as returns at all costs endeavors, but rather foster environments that maximize profitability by respecting the human element that is inherent in all partnerships. We put our expertise to work to add value to each and every investment.

When you are ready to put our expertise to work, give us a call.

If you are an entrepreneur seeking funding for your newly established or growing business, family offices are an increasingly sought after investment partner. Depending upon the stage of your company’s life cycle, a family office may be the right partner for you. 

Each type of funding has its own unique benefits. Here are some of the top advantages of partnering with a family office.

Alignment with Core Values

Family offices are unique in that they are not beholden to the same standards as banks, finance firms, or other capital groups, and can evaluate and fund any investments they see fit with their values. Family offices care most about investments that meet their interests and values. Because of this, it’s important that you research a family office’s mission, vision, values, and interests to make sure your goals and vision align before seeking funding from them.

Long-term investment 

Family offices typically would much rather have long-term relationships than one-and-done investments. This makes this time of partnership a win, win for both parties, and this is one of the main reasons that it is imperative that your goals line up with the family office’s interests and values. If those basic interests align, this is an attractive long-term investment for both parties. 

Mentorship

Another benefit is the experience that the family office has to offer to the entrepreneur. Because the founder and entrepreneur are often already aligned, the mentorship relationship can prove to be invaluable. As anyone who has started their own business can tell you, there are so many questions and challenges that arise in those first years of business.  Having someone in your corner, who thinks the way you think and has the hindsight of having already walked in your shoes, can be an enormous benefit to your business. 

Flexibility and Adaptability

At Scandia Family, we do not approach our investments based on returns or profit margins like many other types of funders, but rather foster environments that maximize profitability for all involved by respecting the human element that is inherent in all partnerships. As a partner-centric family office, we put our expertise to work to add value to each and every investment and help our partners conquer any obstacle in their path.

Being a family office is what makes all of this possible for Scandia. We maintain a high standard of excellence while also understanding that we are partnering with real people. Above all, we strive to be flexible and adaptable while relentlessly pursuing excellence. If these ideals align with your pursuits, reach out to us to start a conversation. We are proud of our thoughtful partnerships and investments. You can learn more about our current investments by viewing our partnership portfolio and real estate holdings.

Commercial real estate is an excellent way to diversify your investment portfolio. The benefits are numerous, and the advantages to developers and investors are worth the time and money involved. What should you look for when making an investment in commercial real estate? As proven real estate investors, here’s what we recommend:

Consider the type of property you want to invest in.

According to vts.com, the six most common types of commercial real estate are office, retail, industrial, multi-family, hotel/lodging, and special purpose. The specific classifications, supply and demand, and overall profitability relative to each type vary depending on location and market conditions. Certain types may be more profitable and worth your investment depending upon these factors.

Be mindful of the location of your potential property.

Specific properties perform better than others based on the supply and demand levels in their respective locations. Every market, sector, and economic period will present unique benefits and challenges when making a commercial real estate decision. To make the best investment, research the asset types that can be most profitable in your desired location.

Research the supply and demand for different property types in your area.

One of the most important things to know before investing in a type of commercial real estate is that every market is different. When you invest, you are investing in a specific geographic area that has its own unique supply and demand. Certain property types may be doing well on a macro level but you may find there is an oversupply in your city, or vice-versa.

Remember revenue differences when renting to one tenant vs. numerous tenants.

The benefits and challenges of investing in an industrial park (fewer tenants) versus a retail complex (multiple tenants) can differ greatly, but the return on investment can be great depending on the location and market you are in. You can also qualify for specific benefits such as lease comps based upon the type of property and location you invest in.

Determine what renovations or improvements might need to be made to your property. 

If you choose to invest in an existing structure or property, consider the financial costs and benefits of that structure. Improving and renovating a property can increase your return on investment (ROI) through more satisfied tenants or customers. However, if the cost of improvement or renovation is projected to be higher than the potential ROI, consider a property or structure that does not require significant improvements.

Determine the total investment before you make your final decision.

As you are considering a commercial property investment, make sure that the total cost, renovations, return on investment, and all of the above considerations fit into your budget and financial projections so that you can make a well-informed investment decision. Also, be sure your real estate pro forma is as accurate and up to date as possible. A real estate pro forma includes investor metrics such as net operating income, expenses, and cash flow.

 No matter the location, type, or size of your commercial real estate investment, it is vital that investors do their due diligence for new property development. This means full research of numerous considerations specific to your personal portfolio, your location, and your desired property type. Investing your time in research and the considerations above can help manifest a smart and profitable commercial real estate investment.

If you are interested in investing in commercial real estate in Utah and the Intermountain West and are interested in the benefit of having an experienced partner who can help guide you through the real estate development and investment process in order to maximize your return and profits, we’d love to talk.

No matter the type of commercial real estate you decide to invest in, it will almost always require a bit of outside funding. This outside funding will help you invest in more or larger properties, which will be more profitable in the long run. This funding will not only give you the ability to acquire land or property, it will also cover the costs of planning, construction, and other related expenses. This funding can come from a few different places:

Commercial Property Loans

Borrowing for commercial real estate is quite different from borrowing for a home or other investment property. Commercial real estate loans are often made to business entities such as corporations, developers, partnerships, or trusts. Lenders in a banking situation often require a significant credit history and someone to guarantee the loan. The terms of commercial loans typically range from five to twenty years, and the amortization (spreading out of loan payments) period is often longer than the term of the loan. Many commercial property loans are interest-only loans resulting in lower monthly payments, but the full amount of the principal due at once.

Commercial real estate loans are generally used to purchase or renovate commercial property or to refinance existing commercial property loans. Lenders often require that the property be owner-occupied, meaning that your business will have to occupy at least 51% of the building. To get a commercial real estate loan, you’ll need to decide on the type of commercial loan you need — depending on the property and business — and then narrow down your lender options. 

Most banks provide commercial real estate loans, but separate commercial lenders are also an option. Here are the benefits and downsides to both, according to valuepenguin.com:

Banks

Most banks provide commercial financing for various types of properties. Local banks can typically offer loans up to $1 million, while regional and national banks can provide even larger loans.

Pros:
Good rates
Possible synergies with other accounts.
Long-term financing options

Cons:
Requires the most documentation
Slow process
Only for borrowers with good or excellent credit 

Commercial Lenders

In addition to banks, there are a wide variety of non-bank finance companies that can provide commercial real estate loans for small- and medium-sized companies. These commercial loan rates tend to be higher compared to banks; however, if you need a loan fast, this could be a good option.

Pros:
Less rigid underwriting standards
Faster approval than banks
Lower fees and closing costs

Cons:
Interest rates higher than banks
May require a balloon payment in 5 to 10 years
Many are short-term loans

Private Investors

Private investors can be passive or actively invested in your commercial property. Non-bank or lender-related financing options can work better for your bottom line and personal financial situation as an investor. With a private investor as your financing option on a commercial real estate investment, the situation becomes a more personal and less institutional relationship, which has many benefits.

Scandia Company is an example of a private investor that can help you fund your commercial real estate investment. At Scandia Company, we are a family office with a proven track record of building value through long-term, thoughtful investments in real estate holdings. We believe that real estate should be first class. We invest in properties that edify and elevate their surroundings and the people who inhabit them. 

As a family office, family is at the core of every decision we make at Scandia Company. Our real estate partners are an extension of that family. Unlike other lending and investment options, we take a long-term, partner-centric approach to our investment decisions, always holding people and family at the core. If you are interested in learning more about the real estate development funding options we offer, reach out to us.