Market Report December 2015

Buyers in the ‘buying zone’ for your business will usually come from ‘existing buyers’ on our database or from ‘new buyers’ scanning websites for advertised businesses for sale. Both groups make up a ‘current pool of buyers’. Serious buyers in the ‘current buyer pool’ are generally ready to act at the right time, when a business that they are interested in presents itself. These become the right buyers for your business when it’s a business of interest that is around the right price that they can afford. After investigating the business further, a buyer will only act if they perceive that the business holds the right value for them to invest in, at that price - even if they have to do some borrowing to make it happen As professional business brokers, we can help drive the buying process through by not only introducing ‘new and existing buyers’ to new business opportunities as they arise, but by highlighting the special value features of a particular business, and pushing for site inspections of businesses so we can help reinforce value. However, the salient fact remains, a buyer will still not act until they see value in the business on offer. In some cases unfortunately, what sellers often don’t understand or lose sight of, particularly in todays market, is that many buyers that are ready to act are the most educated on ‘value’, because they have done the most research on businesses for sale in that sector around a particular price point. So our feedback to the vendor is paramount in these cases. Why? Because if a business continues to be incorrectly price positioned for an extended period, vendors could simply be missing out on buyers and consequently selling their business, which is clearly not the desired outcome. Sellers that utilise Verified Businesses’ professionally designed Internet marketing campaigns continue to be most effective in attracting volumes of buyers to their businesses; particularly if the advertising successfully communicates the special value benefits of their business opportunity. Generally, you have to reach 30-60 buyers to find the eventual purchaser, creating competition for the business being the major objective. Advertising spend to achieve this objective, yields benefits for vendors and is generally of low cost. I don’t know any serious sellers that wouldn’t pay $15-$20 per buyer, if the buyers are the right type for their business, and if it will create competition for that business within the market. The Sunshine Coast is the right place; buyer enquiry is still very strong from locals, interstate and overseas at a rate of 200 to 300 new enquiries per month at Verified Businesses. Increasing numbers of buyers are looking to invest in businesses on the Sunshine Coast, and relocate from interstate (WA, VIC and NSW) either due to changed work or industry conditions, or for lifestyle choices. There also continues to be good numbers of overseas buyers wishing to fulfil visa requirements, and gain permanent Australian residency. Buyers consistently comment on how they love the local climate, the new housing estates, the increasing infrastructure in education and medical facilities, and the opportunities the region has to offer young families. Most buyers are also looking to purchase a family home on the coast either at the same time as they acquire a business, or in coming years. Food and Hospitality, Home-based, and Service businesses are again in hot demand, as discussed in the previous market report. With the exchange rate of the Australian dollar low, more people are once again coming to the Sunshine Coast to spend money. This coupled with the long summers, magnificent weather, and an increasing permanent population, has meant many local buyers and investors along with those wishing to move to the Sunshine Coast, are seeking Food and Hospitality and Service type businesses in the coming