Every year at RCA Business Brokers we take hundreds of enquiries from new and experienced management rights purchasers looking for a great business to buy.
Quite often we’re asked, “Where is the best place to buy”?
People get a bit frustrated and sometimes angry when we shoot back at them, “What are you looking for”?
“Well,” they say, “if you were buying a management rights business, where would you buy?Where are the best deals – Gold Coast, Brisbane, Sunshine Coast, Cairns or NSW?”
That depends entirely on what you are looking for.
Here are some pertinent questions to consider before enquiring.
Where do you prefer to live?
Is the highest income for dollar spent your driving factor?
Are you looking for lifestyle?
Do you want to live near the beach?
Do you want to live onsite and how big a unit do you need?
Are you going to run the business yourself?
Permanent, Holiday or Corporate letting? Or no letting?
Do you want to be near to family?
Let’s look at the last point for a minute.
Last year we had an enquiry from a couple from Melbourne in their sixties regarding management rights for sale on the Gold Coast. No matter what we quoted or showed them, the wife felt nothing was quite right. The husband was quick to reassure me they were genuine buyers. There was always some negative though (unit too small, no outdoor area, too dark, too light), that didn’t suit what she was looking for.
One afternoon we sat down at a café for a coffee to review what we had looked at during the previous two weeks. At first the wife was a little quiet and not very forthcoming with her opinion. Then I asked, “How are the grand kids?”
Well – I couldn’t shut her up, could I. How she wished she could buy a management rights in Brisbane to be near the grand kids. Bingo!! They had always holidayed on the Gold Coast and felt that was where they wanted to be; they hadn’t considered anywhere else. Problem solved and another happy Brisbane management rights owner installed.
So, where and what would I buy if I was looking for a management rights for myself?
There are so many different factors to take into consideration before jumping on a plane or in a car to look at management rights businesses.
I have 3 kids, so a big unit is essential or be able to live offsite.
I prefer to stay in Brisbane.
I prefer corporate letting over permanent.
I prefer a high rise over a garden complex.
I would like to be near the river.
I want a 25 year agreement, or close to it.
I want a spacious office area.
I need at least two car parks.
I want a big enough business that can afford to employ staff to assist.
I want to be able to take holidays.
I don’t want to go backwards in my yearly earnings.
This is my wish list for buying a business.
If I can hit 8 or 9 out of the 11 then I must be close to finding what I want.
If I were to turn up on the agent’s doorstep and hadn’t made out my wish list for the perfect business – how would I even recognise my perfect business when I did see it?
More importantly, how will the agent know what to show me if I have no idea what I’m looking for in the first place?