Contributed By:
CONTRIBUTOR
Founder
of FE International
Source: Entrepreneur
Online business is booming, and there has never been a better
time to build, or buy, a business of your own.
Buying is a particularly attractive option, because a lot of the
legwork is already done for you. You don't have to go through the
often long and grueling process of figuring out your business
model and monetization
methods, which means you can go straight to expanding the business and
increasing its profits.
Of course, if you do acquire a business, whether you take it to
the next level or drive it into the ground is contingent upon your
experience and ability to run it. If you are new to the process, buying
and running a business could be more of a learning experience than anything
else.
Nevertheless, if you're going to be searching for an online business for sale,
having a focus is extremely important. This will allow you to narrow your
search from the get-go, and eliminate the need to sift through sites that don't
match your interests and other key criteria. Whether building or buying, the
same principle applies: focus is critical.
Naturally, finding a business to buy can also be a challenge,
because you have to know where to look. Here are four ways to
find an online business for sale.
1. Directly
It may be worth approaching businesses independently if you know
exactly what you're after. Of course, you'll still want to go through the
appropriate channels to do your research, prepare a business plan to
demonstrate your ability to run a business and pitch the business owner,
whether directly or through an intermediary.
You'll want to analyze the website's traffic and backlink
profile using tools such as Alexa and Ahrefs. Doing
your due diligence at this stage is absolutely crucial, because if you discover
any off-putting trends, you may want to broaden your search and find other
businesses worth approaching. If a site still looks attractive after you've
done your research, you can move forward with the pitch. The key thing to
remember is to communicate that you are serious about buying the business. This
is why having a plan is so important.
If you aren't sure who the website belongs to, you can often
find details by running a simple Google search or Whois lookup.
2. Online marketplaces
There are many online business marketplaces out there, and there
are a lot of buyers that begin their searches on one of these sites, as it is
one of the more obvious places to start. Buyers can look at a variety of
available listings in their chosen industry to find the most viable
opportunities. Buyers can also ask for additional information on any listing,
which will alert the seller of your potential interest.
Although getting an account set up, scanning the listings and
interacting with sellers is a relatively straightforward process. One
marketplace doesn't necessarily have any more credibility than the other, and
are generally only as good as the brokers and sellers that are using them to
sell their businesses.
It is certainly possible to find desirable sites using
marketplaces, but you will still need to use your best judgment in finding
sites that make sense for you.
3. Auction sites
Auction sites are similar to business marketplaces with the main
difference being that potential buyers can bid on sites. Using this system,
sellers have the opportunity to attract more interest in their websites, drive
up the price of their businesses and earn more money. At other times,
sellers may auction off a site without having a firm grasp of its value, which
gives the market the chance to cast a vote with their bids.
The large number of listings makes auction sites an attractive
option for willing buyers. However, you should be aware that businesses on
auction sites haven't necessarily been vetted. Therefore, buyers assume more
risk, as there is less of a focus on operational and income verification, and
there is always the chance that some listings are being misrepresented.
Due diligence therefore lies with the buyer. If you aren't
familiar with best practices, purchasing a business through an auction site
should be approached with some caution. Quality listings are harder to
determine, and shill bidding -- the practice of creating fake buyer accounts to
bid on the site -- can artificially inflate the price of businesses that
may not be worth the asking value.
4. Website brokers
Website brokers (such as my company) are experienced in the
sale of online businesses, have knowledge and expertise, tools and a broad
network to draw from. Broker listings are usually pre-vetted using their
due-diligence process, and they specifically look for legitimate, established
sites with a stable income -- everything you should be looking for as a buyer.
Brokers make the buying process easier on buyers. They can rely
on their experience, work with them to resolve issues that may arise and
can benefit from their advice and guidance when going through their structured
sales process.
Brokers are only paid when the sale goes through, and therefore
have a vested interest in overseeing the deal from beginning to end. This is
also why they are committed to curating high-quality listings.
As a buyer, you still need to be on the lookout for trustworthy
brokers, as it is a relatively new industry. Focus on building relationships,
as this is how you will find the best website brokers.
Final thoughts
If you're looking to buy an online business, there are a variety
of different channels available to you, and one isn't necessarily better than
the other. They all have their upsides and downsides, and you have to check
your overall experience against the channel you're looking to utilize.
If the due-diligence process is new to you, and you've never
bought a business before, then online marketplaces and auction sites may not be
the best options for you. On the other hand, even if you do have a great deal
of experience with the sale of online businesses, there are times when working
with a broker is still the smartest thing you can do.
If you're looking for more information on buying an online
business, here's my company's guide: The Advanced Guide to
Buying an Online Business.
No comments:
Post a Comment