Successful Property Entrepreneurs: Business First or Property First? | Monday Morning Musing #14

I often have people ask me, “when is a good time to get into the property market?” Or “should I get involved in property development?”, or “I have a friend asking me to invest in his property deal, should I do that or invest the £xxxk into my own deal or re-invest back in my business”. So many questions, so many thoughts, so many answers….

Typically, if you have come into some cash you are either a high flying corporate person, you have had some inheritance, you won on a scratch card/lottery or you are a successful business owner. The sensible thing to do next is to compound your wealth by reinvesting that capital. The opportunity of “getting into property” becomes appealing as you have overcome the first major barrier to entry. But you could also invest in stocks, shares, crypto and/or grow your own business.

For those of you that have mastered the art of running and growing a company. Naturally, the appeal of property development/investment as an additional income stream or long-term investment is strong. But before diving in, it’s crucial to ask: should you stick to what you know or venture into property investment & development?

While property can be lucrative, the reality is property investment & development is a business in itself—one that requires deep expertise, significant capital, and the ability to manage complex risks.

The Business-First, Property-Second Principle

Your primary business generates revenue, builds wealth, and provides stability. Rushing into property development without the right knowledge, team, and financial structure can strain your resources and put your core business at risk. Instead, a strategic approach works best:

✔ Leverage Your Strengths – If your business generates strong cash flow, consider passive property investments rather than hands-on development.
✔ Build the Right Team – Property success comes from partnerships with experienced developers, lenders, and advisors.
✔ Know the Risks – Development isn’t just buying and selling; it’s planning, financing, and navigating market fluctuations.
✔ Smart Finance Structures – The right capital stack and finance strategy will protect your liquidity and overall business health.

For me, the best model for successful business owners is to grow your own business where possible and buy the real estate from which it operates. I call this the McDonalds model which is famously a real estate model based primarily via the "landlord" approach, where the company owns the land and buildings of most of its franchised locations, leasing them to franchisees who operate the restaurants, generating a steady stream of revenue from rent and royalties. There are variations of how this works in practice but ultimately owning the real estate you operate from is a great way to grow your asset base whilst also playing to your strengths.

If you still have surplus capital after maximising those opportunities, you can then look to growing a high yielding income producing property portfolio, and/or investing debt or equity into other experienced investors/developers deals.

Bottom line? If property fits into your broader wealth strategy, great—but don’t let it distract you from what you do best. A thriving business is often the best investment you can make. That said, if you have capital, don’t wait to buy property…buy property and wait.