In this guest post, Finance Broker Matthew McCartney shares practical industry insights to help you make informed decisions when buying a business or commercial property.
It is never too early to start preparing and never too late to buy, however you always need a plan. A lot of my clients come to me with a commercial property or business they want to purchase. The start of the conversation is always “why this business or property?”
Some clients no longer want to work for someone else, or believe their rent is too high on the commercial property they are in, or some even feel like their business should acquire another business to increase their products and services. All are great reasons and motivators to start the process! No matter what your reasons, we want to know your personal and business goals to set you up for success.
The next step is breaking down what value you will get out of the business or commercial property. A few important questions to ask yourself:
Commercial property:
- Why are the owners selling?
- Is it in a location suitable for my business?
- Is it in a location suitable for the business I want in the premise?
- Is there parking? (clients and staff)
- What industries are in the area? Are they similar to my business?
- Potential for good foot traffic?
- Does the location promote my business?
All of the above are important questions to help you find which commercial property is right for you.
Purchasing a business:
- Why are the owners selling?
- Have there been industry changes? How do they affect the business?
- Are there signs of costs outgrowing profit?
- Opportunities for improvement? How can you add value to the business?
- Is there an industry benchmark to compare the business to?
Purchasing a business can be one of the most rewarding or frustrating investments. To make it incredibly rewarding you need a solid plan on what you want from the business, how you can improve the business and most importantly how to find the right business.
As an example, a client came to me with a business from the fitness industry, it was a franchise, and my client loved the brand. My client’s goal was to move from full time employment and run a fitness business, partly for career change but also wanted something more rewarding. My client provided the financials to myself, we then ran through over the phone the above questions some of which my client could not answer. However, the most burning question was “why are they selling?”. We then found the answer in the financials, the costs to operate were outweighing the growth. We also looked into industry and franchise changes. We then found out there were more franchises being established which would take up the “marketing area”, these further limited options to grow and increase clientele.
Without asking those few questions my client could have gone into that purchase without knowing the changes to the franchise and the current position the business was in.
Written by Matthew McCartney, Guest Contributor – Finance Broker
Matthew has worked in the finance industry for six years, including four years writing loans with the Commonwealth Bank, and now assists clients through RFS Finance. He specialises in analysing sophisticated financials, structuring lending solutions, and understanding each client’s goals to deliver tailored, strategic outcomes.
Matthew believes in careful planning and clarity around future goals so your finance structure truly sets you up for success. He is always happy to answer your questions and help you confidently take the next step.
If you’d like to discuss finance options for your next business or commercial property purchase, or simply want clarity around your borrowing capacity and the steps involved, you can contact Matthew McCartney directly on 0423 956 360 or mmccartney@rfsfinance.com.au.
