I have been selling businesses for over twenty years but have specialised in selling management rights since moving to North Queensland in 2010. Management rights are not well known outside of Queensland but have been an integral element in the growth of tourism throughout the state since the 1960’s. Over that time, the rights industry and its impact on tourism has not only flourished but it has provided huge opportunities for thousands to embark on a business venture that has ensured a greater level of success for the business owner than most alternative industries I know of. The barriers to entry and the required level of investment make it possible for most to share in this growth and this level of success.There are sound reasons for this.
The first is the industry has always enjoyed the support of both local and state government and has embraced a level of statutory regulation that underpins the interests of all stakeholders. Unlike most other industry sectors – and this includes recognisable alternatives such as the motel sector, holiday parks and hotel accommodation – management rights has a legislative framework that minimises the likelihood of ‘surprises’ for the genuine, but unwitting purchaser.
Anyone purchasing management rights typically follows a due diligence process that thoroughly examines all material parts of the business before settlement. This process inevitably results in purchasers having greater knowledge of the business they are buying than either the broker and often the seller before they commit financially. Certainly, this gives any purchaser and especially one new to business, peace of mind. For the broker, this is a bonus for all too often one hears of people venturing into business only to find they purchased the ‘lemon’.
Over the years, the banks and other lenders have always been great supporters of the rights industry in financing the purchase of management rights. There are good reasons for this – the statutory framework protecting the interests of all stakeholders, the ‘bricks and mortar’ security within the transaction and the guaranteed income from day one from the Body Corporate salary component.
As a broker, one can sell management rights with confidence all too often absent if selling a business in any other industry.
Australia is a big country and Queensland is a big state. There is a world of difference between North Queensland, central (outback) Queensland and those more populous regions comprising Brisbane, the Gold Coast and Sunshine Coast commonly known as Southeast Queensland (SEQ ). If you are considering a ‘sea change’ move to start a new chapter in life, to invest in a new business venture and to make the most of every opportunity, North Queensland is the place to be.
Many of my buyers and investors over the years cite lifestyle and climate as their primary reasons to move north. North Queensland provides lifestyle in abundance in a climate that is hard to beat. It is true SEQ as a destination is luring however the signs are already evident that lifestyle is fast becoming a thing of the past for those living there. With four-lane motorways linking the three main centres already failing to meet traffic demand and diminishing green and rural space, it is not long before SEQ , the ‘mega-city’, is just over the horizon. For sure, there are more businesses for sale, but why?
North Queensland offers a business environment where one still knows their neighbours, where it is less than an hour to a deserted beach, rainforest or rural town. It is easy to do several errands in less than a couple of hours and there is the necessary work-life balance. These are the attractions tourists and certainly those looking for business opportunity and a ‘sea change’ environment are attracted to.
The climate is hard to beat, stable and healthier. It is important to dispel the myths. Too often we hear of Australians who think North Queensland in summer is ‘too humid’ whereupon they travel to Fiji, Bali or Thailand for holidays in more extreme settings. The beauty of a tropical climate as you have in North Queensland is two-fold – no extremes and stable. Forty degree days (and with humidity) can regularly be experienced any summer in Brisbane, Sydney and Melbourne. Not so in the tropics where it is a rare event for temperatures to rise above the mid-thirties. And certainly there is no cold in the tropics at any time of the year. Have you ever thought how much work your body has to do adjusting for 20-degree temperature changes in any one day? Not so in the tropics.
But here is the vitally important factor for those looking to invest in business. North Queensland certainly offers a far better return on investment than one would find in SEQ . This is dictated simply on account of property values which traditionally are far higher in the populous areas of SEQ . If one is looking at business fundamentals, a superior return on investment cannot be overlooked.
PO Box 1184 Smithfield, Queensland 4878
ABN 466 274 847 62
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