Financial Task Essay Sample

Being that Gary Green is the owner of Vision Office, a real estate business that is offering Co-working shared office space for rent, he has significant influence and power when it comes to deciding on how the company is to operate. Pirie Street in Adelaide CBD has proved to be one of the best places to do business since the rental space has been experiencing severe demand in the past and this is a clear assurance that the market around this area is doing good, the demand for product and services is on the increase hence demonstrating great potential for growth (Gattenhof, Seffrin, and Grant,2018).

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Since the majority of Gary Green tenants are freelancers, entrepreneurs and micro business, he is on the safer side since and there is a good market and even clients to sustain the performance of his business. The existing clients are enough to sustain the business, however for the company to expand and even to penetrate the market for the primary purpose of enlarging the territory, it is important to note that Gary Green should spend on advertisement and doing the business known in various areas. It is important to note that as the business mature, the market share experience a steady increase and the company will probably start encountering growth on the original target market (Pilbeam,2018: Ahrens, Ferry, and Khalifa,2018). Focusing on the current asset and the current liabilities, the firm has an excellent potential of paying its debt and even funding for expansion in the long run.

As a financial advisor who is experienced and perfected in studying how the market operates and even well conversant with some of the future risks, it is important to note that for additional of $ 700,000, Gary should go ahead with the expansion by actually obtaining one level of office next door. This will be a great opportunity since he will cover more clients and even expand before establishing an alternative space in a new location. When we look at the net profit margin of the company, the company has been experiencing an efficient profit from 16% in 2015, 50% in 2016 and surprisingly 61.5%. This is a clear indication that the business is stabilizing in Adelaide CBD and getting an extra space in the region will be one of the best ways of facilitating expansion.

The advancement in technology, increased connectivity and globalization presents excellent opportunities for business. Businesses always aspire to grow, and therefore the managers are usually on the look-out formulating strategies for implementation of the expansion plans. Gary Grey should consider expansion to the suburbs of the Adelaide to diversify the streams of revenue from its rented offices. Adelaide is the capital of South Australia with approximately 1.29million people. The cost of expansion in Adelaide is expensive because it is the 5th largest city in Australia with a population density of 592 residents per square kilometer (Arthurson, 2012). The tenancy rate is 65% an indication that the town is mostly for residential with the majority of the residents ranging between 15-24 years.

The suburbs of Adelaide are commercial buildings, parks, and malls with good transport infrastructure hence presents opportunities for offices and conference facilities for the people working away from Adelaide city. Adelaide has slow connectivity with ADSL being the fast internet source in the region. Broadband and Cables connections are usually and therefore a significant challenge when it comes to communication development. To the east of the city, there is the beach paradise and the sandy shores that provides the tranquility for business people, freelancers, and the entrepreneurs to work as they relax thus an ideal place for establishing shared-rent offices and conferences for the tourist and for companies planning team building activities (Newton and Glackin , 2014).

The drivers for business expansion is to command the market share by targeting the customers. Gary act with speed to curb the demand by opening up other offices away from the Adelaide city because it is cost-effective, it has the target customer base, better recreational services such as the parks and beaches, and the malls. The suburbs are easily accessible by road from Adelaide hence easy to maintain strong customer relations.

Bibliography

Ahrens, T., Ferry, L. and Khalifa, R., 2018. The hybridising of financial and service expertise in English local authority budget control: A practice perspective. Qualitative Research in Accounting & Management.

Arthurson, K., 2012. Social mix and the city: Challenging the mixed communities consensus in housing and urban planning policies. CSIRO publishing.

Gattenhof, S.J., Seffrin, G. and Grant-Iramu, M., 2018. Evaluation of Australian Performing Arts Market 2014-2018: Year Three Executive Summary.

Newton, P. and Glackin, S., 2014. Understanding infill: towards new policy and practice for urban regeneration in the established suburbs of Australia's cities. Urban policy and research, 32(2), pp.121-143.

Pilbeam, K., 2018. Finance & financial markets. Macmillan International Higher Education.

Stephens, M.L., Marchi, A. and Gong, J., 2018, July. Program of Controlled Transient Field Tests in Adelaide CBD Smart Network. In WDSA/CCWI Joint Conference Proceedings (Vol. 1).