{"id":306,"date":"2016-08-15T08:04:56","date_gmt":"2016-08-15T08:04:56","guid":{"rendered":"http:\/\/www.theonsitemanager.com.au\/news\/?p=306"},"modified":"2016-08-15T09:40:25","modified_gmt":"2016-08-15T09:40:25","slug":"multipliers-in-management-rights","status":"publish","type":"post","link":"https:\/\/theonsitemanager.com.au\/news\/multipliers-in-management-rights\/","title":{"rendered":"Multipliers in Management Rights"},"content":{"rendered":"<p>There\u00a0have been many of articles written on the Management Rights business model in Queensland over the years. Multipliers in Management Rights\u00a0are one of the key areas that people\u00a0are keen to find out more about.<\/p>\n<p>Like most business operations the model\u00a0is the same\u00a0however the individual businesses can vary considerably. Management Rights\u00a0are no different.\u00a0A real estate agency or a McDonalds franchise, they are all individual businesses but have an overlying business model structure in place.<\/p>\n<p>The management rights business model has some real strengths when we compare to various other models.\u00a0If we look at some of these strengths:<\/p>\n<ul>\n<li>The BC salary, or often known as the remuneration, is a set salary each month over a given and agreed term. This is also subject to annual CPI increases, sometimes higher. There is a contract in place for this salary which can range from 10-25 years. As we are all aware many jobs today can be terminated with 1-4 weeks notice. With management rights it can only be terminated under a legislated process &amp; this rarely happens. This certainly offers strength to the model &amp; security in your role.<\/li>\n<li>ROI or return on investment can be very\u00a0good in some cases. Some buyers actually buy to gain the benefit of\u00a0higher returns compared to interest rates offered by lenders, or in somewhat volatile share markets.<\/li>\n<li>No debtors. Tenants whether long or short term (holiday makers) pay up front and this is held in a trust account. As a manager you get paid regularly each month in addition to the monthly BC salary. The trust account is audited and carries regulatory requirements.\u00a0This in turn offers certainty to the industry. Each month you pay the lot owners then yourself, simple &amp; straight forward.<\/li>\n<li>Many management rights businesses are capable of being staffed by a 2 person team, generally being a\u00a0couple with contracted cleaners\u00a0or other\u00a0service people to assist.\u00a0Training &amp; retaining\u00a0staff in any business can be very time consuming and frustrating for business owners.<\/li>\n<li>Generally, managers work the hours needed which\u00a0offer flexibility.\u00a0\u00a0Time can be taken off at your discretion, within reason. The business can be managed by you, and only you. Yes there are stakeholders and like any business relationships and trust are an integral part to the success of the business.<\/li>\n<li>People will always need somewhere to live. Holiday makers will always need to have a holiday. With the Sunshine &amp; Gold Coasts being two of the best destinations around.<\/li>\n<li>Regular income, although the holiday market can go up and down across a 12 month period occupancy rates are reasonably consistent across\u00a0the board &amp; this has been the case over a number of years.<\/li>\n<li>You may be restricted to a building but not a territory. Some MR owners own more than one operation. Also there can be options to earn additional income by completing sales in your complex. In some complexes this is a business in itself. Depending on what type of licence you acquire you may also let additional lots outside the complex. The opportunities\u00a0can be far &amp; wide &amp; need to be considered fully.<\/li>\n<li>You are buying real estate or a managers residence also.\u00a0Bricks &amp; mortar that you\u00a0own. You live where you work\u00a0so travel costs are reduced also.<\/li>\n<\/ul>\n<p>Quite often I am asked, why are multipliers higher than one would see in\u00a0other business models? The above points must be taken on board. The more certainty or legislated a business, perhaps safer for want of a better word is, then the more value it may hold. There are\u00a0many more benefits to the MR model that\u00a0may not be found in other business operations.<\/p>\n<p>So the multiplier is simply the accountant verified net income\u00a0multiplied by a factor of anywhere between 2 \u2013 6. Various factors\u00a0affect the individual operations but this multiplying factor is recognised by lenders and other professionals in the Industry. Existing managers purchased on a multiplying factor &amp; will sell on one.<\/p>\n<p>Everyday we see or hear of small business failing across a number of areas. Rarely however, do we see this in management rights operations. The business model has strength and this is also recognised by lenders and covered to a degree in legislation. Multipliers may seem high and at times unwarranted, however once buyers get\u00a0in &amp; become more familiar with their operation and the industry, many then learn why they have paid what they did. Simply security &amp; simplicity of income, a place to live &amp; a consistent, at times thriving, &amp; certainly a growing industry.<\/p>\n<p>Many buyers now considering management rights as a future are looking to the model for various reasons including\u00a0job security, having control of their own destiny, lack of, or decline of jobs and income to go with it, style of living and life. However, essentially it is about owning your own business &amp; taking control of your destiny.<\/p>\n<p>There is risk in any business and many would be buyers remain hesitant, sometimes this can simply\u00a0be a fear of not succeeding. For some it is leaving the security of a job, or\u00a0structure\u00a0in life. Life is an unknown &amp; unless we pioneer and give things a go we will never know. What\u00a0we do know is that success &amp; goals cannot be achieved by\u00a0remaining still.<\/p>\n<p>If you have no done so already have a browse through our\u00a0<a href=\"http:\/\/lindsaypettymanagementrights.com.au\/latest-news\/\" target=\"_blank\">previous articles<\/a>\u00a0&amp; for any further information please contact us first. Lindsay Petty Management Rights<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There\u00a0have been many of articles written on the Management Rights business model in Queensland over the years. Multipliers in Management Rights\u00a0are one of the key areas that people\u00a0are keen to find out more about. Like most business operations the model\u00a0is the same\u00a0however the individual businesses can vary considerably. Management Rights\u00a0are no different.\u00a0A real estate agency or a McDonalds franchise, they are all individual businesses but have an overlying business model structure in place. The management rights business model has some real strengths when we compare to various other models.\u00a0If we look at some of these strengths: The BC salary, or often known as the remuneration,<a class=\"more-link\" href=\"https:\/\/theonsitemanager.com.au\/news\/multipliers-in-management-rights\/\">Read More &rarr;<\/a><\/p>\n","protected":false},"author":1152,"featured_media":311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/306"}],"collection":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/users\/1152"}],"replies":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/comments?post=306"}],"version-history":[{"count":1,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/306\/revisions"}],"predecessor-version":[{"id":307,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/306\/revisions\/307"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media\/311"}],"wp:attachment":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media?parent=306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/categories?post=306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/tags?post=306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}