Most people dream of being able to work for themselves and own their own commercial property. Seeing that perfect commercial property for sale advertised in the newspaper might be very alluring. But have you thought about the pros and cons of owning your own business?

Owning your own business comes with its own unique rewards and sacrifices. Buying a business is not only a major financial decision, it is a major lifestyle decision. Before you start buying your dream business take a careful look at some of the possible pros and cons of owning your own business.

The Pros Of Owning Your Own Business

Being your own boss is often the single biggest motivational factor why people want to buy their own businesses.  Working hard to generate your own wealth instead of making someone else rich is definitely a big motivational factor, and by working for yourself you will be able to determine your own working hours and holidays. Furthermore the harder you work to generate more income for your business the bigger your share of the profits will be.

You will also be able to set your own internal rules and working conditions. You will be able to run your business exactly the way you want. You can hire people to do all the tedious and boring paperwork or tasks that you do not want to do. This means that you will have more working freedom to focus on the aspects of the business that you enjoy.

Besides being your own boss, the most valuable part of owning your own business means that you are in control of your own destiny.  This means that you will not be suddenly retrenched from your work. You will be able to see possible problems and failures ahead of time and take the needed precautions t prevent them.

The Cons Of Owning Your Own Business

The obvious downfall of owning your own business is that you are in control, and when things go wrong you will have no one but yourself to blame for the failure of your business. Being in control of your own business also means that for the first few years you will have to put in long hours in order to assure the success of your business. This means that sick-leave, holidays and days off will become a luxury and not a given. Make sure you truly love your new business, because you will be spending all your time and energy attending to it.

Another downside is that when the business is not performing and making money, neither will you. Depending on the type of business you own this may mean that when the business owes money, or is in debt, you will personally be liable for the debts, and you might need to sell off your assets in order to save your business.

There will never been a guarantee that your business will succeed and this may lead to a lot of stress and uncertainty. Remember that owning your own business means that you can never go home after your eight hours and forget about it.

The BSM Group: Experts in infrastructure construction, bulk housing development and building construction projects.

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If you do a good job as a commercial property agent it could be very rewarding. If you are diligent, hard working and ambitious, you are sure to have many great success stories to tell in the future. Here are a few pointers on how to be an excellent commercial property agent.

Stay Informed

Always be up to date regarding what is going on within the field of buying and selling commercial property. Know the market and the needs of investors or tenants. Be good at what you do and excellent in your knowledge.

Make sure you stay on top of sales and investments in commercial properties in the area that your business is covering. How much are commercial properties of different types going for? What prices seem to be successful? What is the rent in the specific areas, what is reasonable and what not? How long have certain properties been on the market? Do you know the history of the various properties? You really have to do a lot of research and gain a lot of information to be better than the next commercial property agent.

You also need to be fully on track with your competition’s sales and investments. Whatever they are doing, you need to do a little more! Be friendly and presentable. You need to brush up on your people skills. Also be sincere, people need to feel that they can trust you.

Be Bold

Business is not going to just walk through your door, so get out there and ‘scope’ your area. Search for opportunities by speaking to owners of target properties. Make sure you are very familiar with the supply and demand needs in your area. Know what people are looking for.

Be excellent in marketing campaigns – sell yourself and your business, even if it means walking from door to door to find out people’s commercial property needs, which is really what commercial property agents have to do! This is also known as ‘cold calling’. This is one of those careers in which you have to have the courage to put yourself out there. You will have to approach various people and businesses and ask them what you want to know about their property needs. Even if you get nine ‘no’s’ from ten tries, that one ‘yes’ will most definitely be worth it!

Another way of searching business is contacting solicitors or perhaps even accountants to find out whether they have clients who might need your help.

There is much you can do to be the best commercial property agent that you can be. It requires a lot of research on the commercial property market, as well as great people skills, but with these you are sure to witness many attractive deals signed!

The BSM Group: Experts in infrastructure construction, bulk housing development and building construction projects.

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Owning commercial property is a valuable investment – if you have bought or rented the right property… What adds value to commercial property? How will you know you are indeed making an investment when purchasing property? Here are just a few interesting tips regarding commercial property and its value.

Location, Location!

If you already have a lucrative investment, such as a property on the beachfront, you can capitalise on your return through adding just a few features. Property close to the sea, lakes or golf courses is very profitable indeed. If you purchase land here and you want to increase the value of this land, building apartments or some other kind of housing for rent on your property is a must!

If you want to invest in offices and are looking for something of high value that will render a positive return, you need to consider offices in the central business district. Doing business in the city centre is usually most lucrative, as businesses are conveniently grouped together for customers. A customer is less likely to travel a few kilometres to the other side of town, if he or she can easily get every thing done in the city centre. Location is the key!

If you can get hold of housing units in the central business area, it will be another great investment, as people are looking for housing close to the town and office, so that they won’t have to drive everywhere. The value of commercial rental property in the CBD is thus extremely high (depending of course on the condition of the CBD – many business centres have moved out to suburban malls).

Residential Areas

In the case of you not having property close to a major attraction such as the sea, add features such as a pond, or invest in good landscaping and make the building on your property attractive (have the house painted, doors oiled, etc.) If you do not have a building, but only open land, the value can simply be improved by adding utilities such as accessible roads or parking spaces.

Investing in property close to campus is of course another profitable endeavour. You will never have a problem with finding tenants! If you can add a few things to the place, such as a coin-operated washing machine or enough parking spaces, the value of your property will increase significantly.

Thinking Big!

Perhaps to some this might sound impossible, but if you are in the position to purchase land big enough to build a mall on, you will soon be making a lot of money. You will soon be renting property to big names such as Wimpy, Foschini and Due South!

Whether you have invested in a prime beachfront property, a small student home or a big shopping mall – there is always something you can do to increase the value of your investment!

The BSM Group: Experts in infrastructure construction, bulk housing development and building construction projects.

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Looking for a great investment? Buying or renting commercial property can be greatly beneficial to you. Investors often feel that commercial properties are the best real estate to spend money on. If you are not familiar with the advantages that come with commercial property, here is a quick overview.

Advantages Of Renting

Why could renting commercial property be beneficial to you? If your business is just starting out, chances are that you won’t have enough money to buy the dream property that you have set your heart on. Young businesses often still have to make money, which is unfortunately not already there when making the property purchase! If you rent commercial property, you won’t have to pay a large total up front. You only have to pay small amounts monthly. This will help maintain your cash flow and your funds will thus not be depleted from the start.

If you are renting commercial property there are various tax reductions that might apply to you. Do your research and find out how you can benefit from this. If you use technological equipment your monthly payments might be tax deductable! Being informed about the various tax laws that apply to renting commercial property can save you a lot of money. Speak to an accountant or someone who works with tax on a regular basis.

Another great advantage of renting commercial property is, should you decide to leave the area to move to better or more suitable premises for your business, you won’t have to go through the whole process of selling.

Advantages Of Buying

There are clearly more than enough advantages to renting commercial property to make it a lucrative endeavour. Buying commercial property, however, also has its benefits. Here are just a few to consider.

Once you purchase commercial property, it is yours! You can make changes when changes need to be made, without having to ask permission from a landlord. You will be the proud owner of your own piece of commercial land!

Renting of course helps you to pay little every month, but at the end, buying commercial property up front will save you a lot of money. All those little payments monthly at the end add up to a bigger sum than the sum total of purchasing the property. If you do not have the cash to buy the property, you could always consider a loan. Speak to your personal banker about your options. Make sure that your business’ returns will be enough to pay off your loan.

Both renting and purchasing commercial property has its advantages. Consider what is most suitable for you and carefully make the investment with the help of professional people in this field.

The BSM Group: Experts in infrastructure construction, bulk housing development and building construction projects.

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Managing your commercial property is very different to taking care of your residential property investment. You will need to stay up to date with what is going on the world of commercial real estate and constantly freshen up your skills. Here are a few things you should take into consideration in order to successfully manage commercial real estate.

Documentation

Make sure that you are very familiar with all rules and stipulations as stated in the lease document. Do you understand all the terms used in this document? Do you know what is expected of you as landlord? And what are the roles of the tenants?

If you are not sure of something in the legal documentation, go over it with a lawyer, real estate agent or someone who understands the commercial property business. Make sure there is no ‘small print’ that you have missed.

If managing commercial property is not your main occupation, you will probably need to get a management team, such as maintenance services, to assist tenants in whatever problems occur at your property. Maintenance contracts are thus more contracts that you will have to get familiar with.

Know The Market

You need to be up to date with current market values. If you are planning to buy commercial property, you need to know whether the price offered is worth paying. If you are renting out space from your commercial property, you will have to compare the rent you ask with other businesses or apartment buildings in the area. Being out of touch with the market will negatively affect your ability to find suitable tenants and it could cost you dearly.

Concerning renting, you will have to brush up on some terminology. Do you understand what net rent and gross rent mean? What is face rent and effective rent? Make sure you understand and stick to standards that are used locally for leasing commercial property.

Working With Your Tenants

The success of your business relies on the reliability of and the relations you have with your tenants. You cannot expect to just put a tenant in your commercial property and then leave them unassisted. In order for tenants to continue using your building in years to come, you will have to help them be able to function on your property. If damages in the building you are leasing are never repaired, the tenant won’t continue with the contract the following year, and news might spread about your failure of maintenance, making it almost impossible for you to find the ideal tenants.

Take the time to learn all you need to know when maintaining commercial property. Being up to date with and understanding all rules, laws and regulations will make your investment a profitable endeavour.

The BSM Group: Experts in infrastructure construction, bulk housing development and building construction projects.

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A lot of effort has to go into the successful promotion and selling of your commercial property. Do all the necessary homework in preparing for selling your property and you are sure to be successful in selling your place and making a good deal.

Documentation

Make sure that you have all the necessary documentation, and that it is all neatly sorted out and filed. Lease documents for various tenants, as well as all insurance documents – any kind of paperwork related to your commercial property, need to be available and accessible to potential buyers.

Inspection

Do a thorough inspection of your property. Is there anything you need to tend to? Is there anything that has to be fixed? Walking around your property, can you think of any questions potential buyers might have? Try to have all the answers to questions related to your property. What special amenities are included as part of buying the property? Is there anything special to your property? Be sure to highlight these things.

Information

Some buyers will appreciate receiving a set of plans and drawings of the building, showing exactly where tenant occupations are and other amenities. Go the extra mile by providing potential buyers with things such as this and you are sure to make a good impression and incline them positively toward you. Be informed about buildings and other commercial properties in the area so that you can provide interested parties with all the necessary information about the area in which they are planning to buy. Aerial photographs could be helpful here.

Together with the plans and drawings of the building get the history of the property together for potential buyers. They will most probably want to know, especially if it is an industrial property, what the property was used for in the past.

Promotion

If you are advertising your commercial property in a newspaper or on some sort of brochure, do not take the photos yourself. Get a professional photographer, who will know everything about lighting and good angles, to take professional photos of your property. A bad photo can negatively influence any other promotional efforts. Look around and see how other places are promoted. What are you up against? Can you learn from other peoples’ efforts at selling commercial property?

Find out what other commercial properties in the area are going for. If you over value your property, you will find it extremely hard to sell it. On the other hand, if you price it too low, you cannot move the price up later, and you will lose out on getting a good deal.

If you have all the right detail for your buyers and your property and legal documentation is up to scratch, you should experience no difficulty in selling your commercial property at a profit!

The BSM Group: Experts in infrastructure construction, bulk housing development and building construction projects.

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