Why You Should Look At Buying A Regional Business

When you decide to become a business owner, you might dream about owning a global brand that takes on the likes of Amazon and Starbucks. And while shooting for the stars is always a good idea, there is a lot of joy (and profit) to be gained from establishing a regional business in your local area.

Though you may not consider it as successful as a massive brand with locations around the world, there are many advantages to owning a regional business in Australia. In fact, you can have just as much success as you would if you were to enter larger markets. Not all success is monetary, and it could be more intelligent to establish a thriving regional business instead.

In this article, we will look at what a regional business is and what advantages there are to buying one in Australia. Read on to learn more about the regional business landscape in Australia.

What is a Regional Business?

A regional business in Australia is essentially any business set up in the regional parts of the country. This means the parts of the country that aren't the big cities. In Australia, internal migration flow has altered in recent years, meaning more people are now leaving the big Australian cities for the regional areas. This puts you in good standing for starting a business there.

Before opening a business in regional Australia, it is essential you make a few key considerations about the region. These include:

• Population growth: Some hotspots are growing rapidly in regional Australia. Is the area you’re looking to open in one of them? Is the population growing?
• Local economy: While regional areas of Australia are generally thriving, not all of them are. Find out if the area you’d like to establish your business is experiencing faster than inflation growth. This is a good indicator of the likely success of a new business.
• New developments: Often, the Australian and local governments will invest funding in key areas to boost the development in regional Australia. Is there anything that you could take advantage of there?

If you’d like to know more about growth in regional Australia, particularly with regard to franchise development, check out our white paper on franchise growth in regional Australia now.

Advantages of Buying a Regional Business in Australia

So, what makes regional business such an intelligent move? Why should you buy a business away from the big cities?

Below, we have listed some of the best advantages of doing so. Check them out to find out more about regional business benefits in Australia.

#1 Thriving Local Economy

So long as you choose the region well, you’re likely to be buying your business in a thriving local economy. 

With the recent changes in migration in Australia, regional economies are likely to grow. As more people move, this will have a positive impact on the housing market, which, in turn, will boost economic development. 

If the economy is good in a regional area, this means people have more spare cash to spend at your business. Look for regional areas with a strong housing market and good business investment.

#2 Loyal Customer Base

Something you can count on in regional Australia is a supportive customer base. Supporting local businesses has never been more on-trend. With people looking closer at where their stuff comes from, who made it, and how it impacted the environment, shopping with businesses in your local area is the thing to do.

On top of this, regional councils often allocate funding specifically for growth in the area. So not only do you have the support of your customers, but the councils and powers that be also want you to thrive.

While chains and franchises will do well because people know the brand, there is something to be said of the familiarity of your local businesses. People feel that not only are they supporting the local economy when doing business with you, but they’re also supporting their own –– a neighbour of sorts.

#3 Reduced Competition

Due to the nature of regional Australia, there are fewer competitors than you would have were you to open shop in a big city. While franchises and bigger chains are reaching regional and rural parts of Australia, these more prominent companies have not always seen the value in opening in these areas.

For this reason, you’re likely to encounter much less competition in a regional area than in a city. The advantage of this means that if you fill a niche, you’re going to get almost all of the customer base too. And if you already dominate the market in the area, you’ve got a better chance of keeping your foothold if other businesses do open in your industry in the area.

#4 Reduced Cost of Living

Regional Australia is generally a cheaper place to live and work than the bigger cities. This means your bills, including utilities, WiFi, and more, will likely be much lower, as well as the cost of your commute, your raw materials, and your own personal living cost.

If you don’t need to spend as much on overheads, you have more to spare for investment, developing new product lines, or taking on more staff. All of this can increase the success of your business and ensure growth.

#5 Familiar Market

While not all business owners will open their business in their hometown, you may choose to because you already know the market. And having a familiar market to buy your business in means that you will spend less time researching and getting to know your customers. You can cater your business to the market you already know and attract customers from day one. 

#6 Impact on the Community

Local businesses have a significant impact on the community. If this is close to your heart, opening a regional business is right for you.

Due to the nature of a regional business, you’re automatically supporting the local community by being there. If you do well, so does the local economy, and vice versa. But as a local business, you’re in the unique position of being able to take on a more significant role in the community.

Your business can get involved in supporting local causes, sponsoring events, and giving back to the local area. This is an incredibly fulfilling aspect of opening a regional business and is something you are less likely to find in a big city.

#7 Improve Work/Life Balance

Last of all, unlike bustling metropolitan cities, regional areas have a much more relaxed way of life. It is one of the things that makes regional areas so attractive to people and explains the change in internal migration in recent years.

What this means as a business owner is that you, too, will get a better work/life balance. This may have been something you craved while working in a bigger city, but with others around you not prioritising a work/life balance, you may have found it more challenging too.

In a regional area, you will experience much less ‘peer pressure’ to work long hours and forgo a social life, time with your family, vacations, etc. Consider how important this is to you. If the answer is very, then regional business ownership is right for you.

Final Thoughts

Buying a regional business in Australia has several benefits for you to take advantage of. If you want a slower pace of life, a supportive customer base, and a local community that you can support and be a part of, then regional business ownership is for you.

If you want to buy an already established business in regional Australia, why not check out Eden Exchange? We have thousands of daily active listings for business buyers and all the resources you need to buy a business right at your fingertips.

The Eden Exchange platform was designed to innovate the business buying and selling process. Our experts have years of experience and knowledge to support your journey. Take a look at our site to find out more about the platform now.

Ready to get started? Contact us today!

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Eden Exchange is an integrated multi-channel platform, simplifying business buying and selling. We match, refer and connect business buyers, sellers & brokers in an ecosystem that facilitates frictionless franchise, business and finance transactions. Visit www.EdenExchange.com and connect with our engaged and multidimensional transaction network today.