October 2009

What It Takes To Own A Caribbean Business

As anyone who has ever sent in a request for more information about our listings will tell you, our first course of action is to send over a questionnaire with all kinds of intrusive questions about their personal finances, decision-making ability and spousal consent.  While most take it in good humor and provide us with as accurate a picture as possible, a few have simply refused to fill out the form and/or re-disappeared into the digital mist from whence they came.

The fact is, there are far more people enticed by the *idea* of owning a business, especially in the Caribbean, than those ready to make the commitment required to take a successful operation and run with it.  Since we represent both parties during a transaction of this nature, we thought it would be a good idea to publish a checklist of things you should consider before seriously approaching a Caribbean business for sale opportunity.

If you are interested in purchasing an existing business in the Caribbean (and we hope you are), ask yourself the following questions – and get your spouse and/or business partners to do the same…

1. Are you a self-starter?
2. Are you a leader?
3. Have you worked in a business similar to the one you want to buy? (i.e. retail, tourism, hospitality, etc.)
4. Have you had any entrepreneurial experience?
5. Do you have the patience to work with and motivate the people around you?
6. Can you accept total responsibility for a company’s success or failure?
7. Do you have a strong team of advisers/mentors?
8. Do you have a budget, marketing and business plan?
9. Have the plans been critiqued by your team of advisers?
10. Can you make decisions quickly and confidently?
11. Can you stay the course if times get tough?
12. Can you access additional capital beyond the initial start-up or acquisition costs (most businesses fail due to lack of capital).
13. How is your credit?
14. Have you shopped your competition and determined your competitive advantages?
15. Have you researched the availability of personnel and the skills necessary to staff your business?
16. Have you considered the differences between working at the beach vs. being on vacation?
17. Did you check to see if there were any laws that may hamper your ability to do business?
18. If you could make the same amount of money working for another business owner, would you still proceed?
19. Do you have the support of your spouse or business partner(s)?
20. Can you read and keep financial records?

If you answered “yes” to 15 or more of the above questions, you probably have the right mindset to start or buy your own business.  If you answered “yes” to 10 or fewer, you may want to reconsider your motivations.

Especially in regard to question #16, we often hear from couples just returning from a wonderful vacation experience, dreaming of the chance to return and live happily ever after.  It can and has been done!  Unfortunately, many of those same people lack the experience or fortitude to get down to the business at hand.  To cater to others rather than being catered to.  To roll up their sleeves rather than rolling out their towels.  It takes a balance of both to run a successful Caribbean business, and we’re here to help, but be sure you are ready for the commitment before asking a busy business owner to commit their time and energy to your wistful fantasies.

If you feel that you are indeed ready to take the plunge, LET US KNOW.  We would be glad to help guide you through the process of purchasing your new life in the Blue Water World.

For Sale: Daysail Operation in St. Maarten

A wonderful opportunity to own and operate your dream business in St. Maarten. This daysail operation provides a great experience for their customers who come from visiting cruise ships and area hotels / villas. The crux of their operation consists of taking their guests out sailing and snorkeling in the crystal clear waters of the Caribbean. They also provide food and beverage for their guests. The excursion is usually 3 to 4.5 hours during the day with a shorter sunset cruise in the late afternoon. They also offer private charters. Contracts are in place with cruise lines and they also have a strong web presence to attract customers.

Asking Price: $475k

Competition: Unique boat for the area in great location to capture cruise ship passengers.

Growth/Expansion: This island is already a popular cruise ship destination with expansion plans taking place to enhance cruise ship business.

Contact Us for additional operating and financial information.