I'm tired of my business...now what?
One thing that amazes me, and I have seen it time and time again, is how business owners will leave their business for dead instead of trying to sell it - even for whatever little value it may have. There are many reasons business owners eventually sell their businesses: health reasons, a family move, and other business / family obligations are some common reasons for selling. Many times business owners are just looking for a fresh challenge and are "bored" with the business they have created or purchased years ago.
But, I have seen a lot of business owners get frustrated, tired, burnt out, etc. and just close the doors! Most every business with equipment, cash-flow, community presence, online presence, and a decent reputation, has value. Now granted, if the business has none of those things - or very few - it was never really a business... So I am talking to those owners who have invested hard earned time and money, emotion and have had some measure of success and / or recognition in the community as a legit business. Why would you just walk away and close the doors?
All businesses as I described have some asset value. It's like if you had a piece of land, built your own home - no matter how small and simple, or large and fancy - and then got bored with it and then just walked away from it. Let's assume you owned it free and clear as well - any money you received from it was all gain (or offset for your investment into it)...why not try to sell for whatever value the market was willing to pay for it?
I have seen this happen many times - especially here in Guanacaste - and I always scratch my head and wonder why the owner didn't try to improve / position / sell if he / she had gotten bored or frustrated or "done" with the business.
I have also seen business owners place too much value on their business and try to sell to no avail, due to misunderstanding pricing and what buyers look for in purchasing. Remember, buyers with money can start their own, so you must price accordingly. But I digress...valuing a business for sale is a whole other topic which we'll cover next. Stay tuned, and thanks for visiting Coastal Commercial Group!
Tony is the owner of Coastal Commercial Group LLC, Limitada, in Flamingo Costa Rica. Coastal Commercial Group specializes in Commercial Real Estate and Business Brokerage - helping businesses position and sell, and helping buyers buy businesses and investment properties, navigating through proper valuation, permitting and legal issues. Should you wish to have a chat about the commercial real estate / investment / business market in Guanacaste Costa Rica, reach out and contact Tony here. You can also find out more information at www.CommercialCR.com or CRBusinesses.com