Selling a business can be an emotional decision and process. When is the best time to sell? What is your business worth? Where do you find buyers? And a million other questions. Here are a few tips if you hope to sell your business on St. Croix.
- Sell for the right reasons at the right time. Selling a business on St. Croix is a lot like selling a house. Don’t wait until you’re desperate. Are you planning to move off island? Don’t want until you’re ready to move (or have already moved!) to sell. Potential buyers can leverage your sense of urgency to reduce the price. Are you planning to retire? Plan ahead so there’s plenty of time to find the right buyer.
- Know what you’re selling. What are the assets of your business? A business may have physical assets like inventory, equipment, property and materials, as well as trademarks, client lists and goodwill. If you’re in a lease, will the lease transfer to a new owner? Once you have outlined all of your assets, you’ll need to determine which ones will be included in the transaction when you sell your business.
- Set your price. With a list of all your assets, setting a price should be easy, right? Not always. Assets, future earning potential, current economic factors and competitive analysis can all play a role in business valuation. Seeking the assistance of someone with knowledge of the island economy and experience in selling a business on St. Croix will be helpful.
- Get professional help. A professional valuator is a start to setting you up for successfully selling your business on St. Croix; however, the selling process can also be daunting. A commercial real estate agent will be helpful with finding and negotiating with prospects and navigating the process once you have a buyer. Working with a professional broker will also help free up your time to keep your business running smoothly until the transaction is complete.
- Don’t stop running your business. You wouldn’t let your laundry pile up and leave dirty dishes in the sink when trying to sell your house. So, be sure to keep your business running smoothly, even if your heart and mind are already on to your next venture. Your fellow entrepreneurs are seeking a flourishing business, not an unwanted one.
- Set your buyer up for success. In addition to being prepared with financial documents to share with prospective buyers, keep thorough records of all of your business dealings. This includes suppliers, consultants, clients, service providers, and other relevant paperwork that will help the new owner be successful.
We are confident that following these tips will help you sell your business. St. Croix attracts all types of people and the right buyer may be searching for your opportunity right now!