Real Estate Investment For Small Business Owners and Franchisees

Joanna Johnson

Becoming a franchisee in Australia has been selected as one of the most profitable business opportunities for Australian entrepreneurs. Yet the challenges franchise buyers meet when choosing the right property for their new business are often a reason for failure. Setting up your company in an area with low traffic might severely hurt your business. Lending and purchasing have their own pros and cons which can either guarantee you steady growth or drop your sales.

There are two basic types of franchise options you can choose from. Buying a product distribution franchise, which will allow you market the franchisor's products or embarking in a business franchise opportunity, which usually includes a full set of management tools and working strategies ready for you to put in use. Yet, using a property owned by your franchisor is quite rare as not many enterprises have the resources to buy and maintain a complete property base.

Product Distribution Franchise Properties:

If you are planning on partnering up with a product franchise company, you need to to be aware of the real estate situation in the locality your business will be launched. Marketing and selling specific products requires a steady flow of customers which are familiar with the area you operate in and the products you offer. Buying a property may sound like a good idea, yet it can hinder your business development in time as you won't be able to adjust your shop or office according to your company's needs. And unfortunately, your chances of finding the right property, located in a perfect area for your business to grow ,are close to zero. Many if not all of the lots in the central areas of the big cities such as Melbourne or Sydney are only offered as a lease.

Business Franchise Properties:

Buying a franchise business does not put as many challenges to investors as purchasing a product distribution franchise. The location where your company will be places will often have little to do with distributing your services properly if you choose to be part of a support or service distribution agency. Companies such as cleaning franchises usually provide their services via their website or by relying on word of mouth. Choosing the appropriate property for your business franchise doesn't mandatorily mean you need to lease in the central area of the city. Instead, many of the business franchises are actually sold by locations. This usually means you will operate in a smaller suburb or area where there is need of your services and finding the right property to buy in this locality won't be such a difficult task. Buying, on the other hand has great advantages which will free you from the of keeping up with your landlord's guidelines for use. You will also be able to refurbish your property and reconstruct knowing all the improvements you made to it will eventually help you sell it after time.