Michael DiGiovanni Of Storydoor: Lessons I Learned From Last Year To Take Our Organization to the Next Level in 2024
An Interview With Chad Silverstein
Empathy: Our commitment to empathy in 2023 led us to enhance our services by incorporating a deeper understanding of the emotional aspects of home selling. For example, we implemented training programs for our staff to better recognize and address the emotional needs of our clients during the home-selling process. By offering more supportive and compassionate services, we were able to strengthen our customer relationships and foster trust and loyalty. This emphasis on empathy not only improved the overall customer experience but also differentiated us from competitors in the industry, ultimately leading to increased client satisfaction and retention.
This series aims to discuss the experiences and lessons learned by top executives over the past year, and how these insights are shaping the landscape for change and innovation in 2024. The past year has been a time of unprecedented challenges and opportunities, requiring adaptive leadership and innovative strategies. We believe that sharing these experiences can inspire and guide others in their endeavors to drive positive change in their organizations and industries. I had the pleasure of interviewing Michael DiGiovanni.
Ever since he was eight years old, orchestrating the neighborhood kids to run franchised lemonade stands and sharing in their profits, Michael knew entrepreneurship was his calling. His journey into real estate began as a broker, where he quickly recognized the rigid, uncertain, and stressful nature of traditional home-selling methods wasn’t going to cut it. The roadmap he began developing back in 2012 came to fruition when, at the height of the global COVID-19 pandemic, Michael and his team set out to reinvent the selling process with a new, radically simplified way to sell homes.
Thank you so much for doing this with us! Can you share a little about your background and what pivotal moments led you to your current position as an executive?
It’s my pleasure, thank you so much for having me! Entrepreneurship has been a part of my story since my lemonade stand “franchising” days! Luckily, I had a grandfather who served as an invaluable mentor to me throughout my early adolescent and adult years. After serving in WW2, he worked his way up to Battalion Chief at the Seattle Fire Department. Although he came home a hero, he was severely impacted by the sometimes grim nature of the job and suffered from PTSD. Regardless, on the side of his day job as a Battalion Chief, he slowly but surely started to invest in single-family rental properties throughout the greater Seattle area. His mentorship and interest in real estate naturally rubbed off on me and was the catalyst to what eventually became Storydoor and Storydoor Homes Foundation under my leadership.
What were the early challenges you faced in your career, and how did they shape your approach to leadership?
Early in my career, one of the significant challenges I faced was underestimating the amount of start-up capital needed to launch Storydoor. Bootstrapping the business meant I had to get creative, juggling multiple jobs while relying on credit cards to cover expenses. Looking back, I realize this was a mistake. If I had raised capital from the onset, I could have avoided a lot of heartache and financial stress.
This experience taught me the importance of proper financial planning and strategic decision-making. It shaped my approach to leadership by instilling in me a sense of resourcefulness, resilience, and determination. I learned to be proactive in seeking solutions, lateral thinking, and embracing challenges as opportunities for growth.
Moving forward, we are now in a stronger position, having overcome our initial hurdles. However, we recognize the value of capital infusion to accelerate our growth initiatives. As a result, we are open to begin formally raising capital to fuel our expansion plans and propel our company to new heights.
We often learn the most from our mistakes. Can you share one that you made that turned out to be one of the most valuable lessons you’ve learned?
As I previously touched on, through my journey as an entrepreneur, I’ve discovered the critical importance of accurately forecasting the start-up capital needed for a new business. Initially, I underestimated my venture’s financial requirements, choosing to self-fund through various different avenues.
This choice highlighted the essential lesson of the need for precise financial planning and the wise allocation of resources. The experience of facing financial hurdles and growth constraints early on due to insufficient capital underscored this point.
It has since informed my strategy for securing funding, emphasizing the value of realistic financial projections and the pursuit of external investments to support our ambitions for expansion. This insight has become a cornerstone of my financial strategy, ensuring that seeking suitable investment opportunities is a priority for sustaining and scaling the business.
As an executive, how do you define success, both personally and for your organization?
Success, in my eyes, is defined by impact. For both Storydoor and myself, it’s not merely about the volume of transactions we make, but the lives we touch and the communities we uplift. Our success metrics extend beyond traditional financials to include the number of families we’ve assisted and the extent of our contributions to recovery housing through our non-profit, Storydoor Homes Foundation. I see it as the best way to honor my grandfather’s legacy and offer the home he never had to all those struggling with housing insecurity and who are committed to their own recovery journey.
Reflecting on 2023, what was the most unexpected challenge you faced, and how did you navigate it?
The most unexpected challenge in 2023 was the shifting real estate market amidst global economic uncertainties. 2023 culminated with the highest interest rate environment real estate has seen in the last 20 years. My team and I navigated this by doubling down on our core values and mission, adapting our strategies, and adopting technological advances to not just withstand but thrive while setting ourselves up to capitalize in 2024 and beyond.
What was a significant risk you took this year, and how did it turn out?
One specific initiative within this expansion involved the launch of the “Home for Every City” campaign. This campaign aimed to establish at least one Storydoor Homes Foundation home in 30 major metropolitan city across the country by 2025. Through targeted outreach and collaboration with local stakeholders, including government agencies, housing authorities, and community organizations, we identified opportunities to acquire properties, renovate existing structures, and develop new housing units to help address the housing insecurity and recovery crises throughout the US.
Additionally, we implemented innovative financing strategies and explored alternative funding sources to support our expansion efforts. This included leveraging impact investing, crowdfunding, and grants from philanthropic organizations dedicated to affordable housing initiatives.
So far, the outcome of this risk has been successful. Despite the prevailing uncertainties, we exceeded our goals for the “Home for Every City” campaign, with 10 homes now established out of 30. This achievement not only demonstrates our commitment to fulfilling our mission but also showcases the resilience and adaptability of our approach.
Overall, by specifically focusing on expanding the reach of the Storydoor Homes Foundation’s housing initiatives and leveraging strategic partnerships and innovative financing methods, we were able to turn this significant risk into a transformative success, positively impacting communities we serve.
How has your company’s mission or purpose affected its overall success? Can you explain the methods or metrics you use to evaluate the impact of this purpose-driven strategy on your organization?
Our company’s mission has been the bedrock of our success. We evaluate our impact through both quantitative metrics, such as the number of homes purchased through Storydoor and converted into recovery houses for Storydoor Homes Foundation, and qualitative measures, like community feedback and stories of individuals we’ve helped.
Have you ever faced a situation where your commitment to your purpose and creating a positive social impact clashed with the profitability in your business? Have you ever been challenged by anyone on your team or have to make a tough decision that had a significant impact on finances? If so, how did you address and reconcile this conflict?
There have been moments where our social mission seemed at odds with short-term profitability. One such instance was choosing to invest in recovery housing despite tighter margins and lack of available state-sponsored programs. This decision was met with skepticism by some, but we navigated this by engaging in ongoing open dialogue with our team, reinforcing our belief in the long-term value of our mission. This approach not only resolved the conflict but also strengthened team morale and our collective commitment to our mission.
Could you list the top five things you’ve learned in 2023, with specific examples of how these lessons impacted your decisions or strategies?
2023 has taught me that these five values are key: adaptability, empathy, innovation, community focus, resilience
1. Adaptability: In 2023, we learned firsthand the importance of adaptability in navigating volatile market conditions. One specific example of this was when we observed shifting trends in the real estate market due to economic fluctuations. Instead of sticking to our original investment strategies, we made the decision to pivot and prioritize long-term value. For instance, when we noticed a decline in demand for luxury properties on the Storydoor side, we shifted our focus to investing in more affordable housing options. This adaptability not only helped us mitigate potential losses but also positioned us to capitalize on emerging opportunities in the market, ultimately contributing to the long-term sustainability of our business.
2. Empathy: Our commitment to empathy in 2023 led us to enhance our services by incorporating a deeper understanding of the emotional aspects of home selling. For example, we implemented training programs for our staff to better recognize and address the emotional needs of our clients during the home-selling process. By offering more supportive and compassionate services, we were able to strengthen our customer relationships and foster trust and loyalty. This emphasis on empathy not only improved the overall customer experience but also differentiated us from competitors in the industry, ultimately leading to increased client satisfaction and retention.
3. Innovation: Throughout 2023, our dedication to innovation was exemplified by our relentless pursuit of leveraging technology to enhance efficiency and meet our clients’ evolving needs. One notable example of this was the implementation of Generative AI tools to streamline our decision-making processes, optimize our investment strategies, and provide stellar customer service. By harnessing the power of technology, we were able to stay competitive in a rapidly changing market landscape and provide our clients with Generative AI and more data-driven insights and solutions. This commitment to innovation not only improved our operational efficiency but also reinforced our reputation as a forward-thinking and client-centric company.
4. Community Focus: In 2023, our focus on community-centric solutions was reaffirmed through the expansion of our foundation’s work. As discussed, our “Home for Every City” initiative as discussed in the prior example. By actively engaging with community members and stakeholders, we were able to tailor our initiative to meet their unique challenges and aspirations. This community-focused approach not only had a positive impact on the individuals and neighborhoods we served but also strengthened our brand’s reputation as a socially responsible organization committed to making a difference.
5. Resilience: The year 2023 taught us the invaluable lesson of resilience, particularly in maintaining a steadfast commitment to our mission during challenging times. Amidst economic uncertainties and unforeseen obstacles, we remained unwavering in our dedication to our core values and objectives. For example, when faced with setbacks in our expansion efforts, we doubled down on our mission to make a positive impact on those experiencing housing insecurity and foster recovery, exploring alternative strategies and partnerships to overcome obstacles. This resilience enabled us not only to weather the storms but also to emerge stronger and more determined than ever to fulfill our purpose. It reinforced the notion that resilience is not just about surviving adversity but thriving through it, emerging stronger and more resilient on the other side.
How have these top five lessons from 2023 changed your outlook or approach for 2024?
These lessons have recalibrated our vision for 2024, highlighting the indispensability of adaptability, empathy, innovation, community focus, and resilience in our approach. They signify a shift towards more agile, empathetic, and technology-driven operations, with a continuous emphasis on community impact and sustainable growth. Our strategy has evolved to prioritize long-term value over short-term gains, emphasizing the importance of building a resilient and purpose-driven organization.
In terms of innovation and adaptation, what’s one change you implemented in 2023 or plan to do in 2024 that you believe will be crucial for the future of your business?
In 2023, Storydoor leaned heavily into technological innovation, particularly the integration of AI and data analytics, to enhance our operational efficiency and decision-making capabilities. For 2024, a crucial change we plan to implement is expanding our use of blockchain technology to streamline real estate transactions. This move is poised to revolutionize the way we handle contracts, escrows, and records, making processes more transparent, secure, and efficient. It’s a testament to our belief in harnessing cutting-edge technology to redefine the real estate landscape.
As a leader, how do you foster a culture of continuous learning and improvement within your team or organization?
Fostering a culture of continuous learning and improvement within our team is a priority that we approach with intentionality. We encourage curiosity, experimentation, and open dialogue, creating an environment where every team member feels empowered to seek knowledge, challenge assumptions, and propose innovative solutions. Regular training sessions, knowledge-sharing meetups, and support for personal development projects are just some of the initiatives we’ve put in place. We believe that by investing in our team’s growth, we’re not only enhancing their capabilities but also driving our company’s overall success.
Looking at the broader industry landscape, what emerging trends do you think will be most influential in the coming year?
In the coming year, the real estate industry is poised to be significantly influenced by the integration of technology, with Property Technology (PropTech) leading the charge in streamlining transactions and enhancing property management through AI and blockchain. Concurrently, sustainability and green building practices are gaining momentum, driven by increasing environmental awareness and consumer demand for energy-efficient living spaces. These trends, coupled with the evolving lifestyle preferences towards flexible living and working arrangements, underscore a shift towards more adaptable, technology-enabled, and environmentally conscious real estate solutions, signaling a transformative period ahead for the sector.
If you and I were having a conversation one year from now, and we were looking back at the past 12 months, what specifically has to happen for you to be happy with your progress?
One year from now, reflecting on the past 12 months, I would be happy with our progress if we’ve successfully expanded Storydoor Home Foundation’s initiative by adding at least another 10 recovery homes, further streamlined the home-selling process through technological advancements, and reinforced our commitment to community impact. Achieving these goals would not only mark a year of substantial growth and impact for Storydoor but also further our mission of transforming the real estate industry while making a positive social impact for those struggling with housing insecurity and/or substance use disorder (SUD).
How can our readers further follow your work or your company online?
Anyone interested in following our journey can stay updated through our website, Storydoor.com, and our foundation’s site, StorydoorHomesFoundation.org. We regularly share updates, insights, and stories of impact through these platforms, inviting our community to engage with our work and mission. By connecting with us online, you’ll be joining a movement dedicated to reimagining real estate and making a tangible difference in people’s lives and communities.
This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!
Thanks for taking the time to learn more about our story!
About the Interviewer: Chad Silverstein, a seasoned entrepreneur with over two decades of experience as the Founder and CEO of multiple companies. He launched Choice Recovery, Inc., a healthcare collection agency, while going to The Ohio State University, His team earned national recognition, twice being ranked as the #1 business to work for in Central Ohio. In 2018, Chad launched [re]start, a career development platform connecting thousands of individuals in collections with meaningful employment opportunities, He sold Choice Recovery on his 25th anniversary and in 2023, sold the majority interest in [re]start so he can focus his transition to Built to Lead as an Executive Leadership Coach. Learn more at www.chadsilverstein.com.
Michael DiGiovanni Of Storydoor: Lessons I Learned From Last Year To Take Our Organization to the… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.