Contributed By:
CONTRIBUTOR
Founder
of FE International
Source: Entrepreneur
Imagine devising a winning business idea that you develop into a
fully fledged enterprise.
Your
business is profitable, and it's everything you ever wished or hoped it would
be. But now it's time to move on. You're ready to make your exit because
you want to explore new ideas and new ventures. Or maybe you just want to take
a well-deserved vacation.
If
you're looking to sell your website,
however, and you don't have an exit plan in place, the process could prove
more challenging than you are inclined to think. If you don't know
how you're going to sell your business yet, don't fret. Here are five
entrepreneurs that were willing to share their secrets to a successful online
business exit.
1. Create exposure engines.
Jeff
Taylor, CEO of DEVISE, sold a seven-figure fitness website
earlier this year, and he was kind enough to share how he was able to make it happen.
Taylor's
advice is to "...first focus on quality and user experience. After that
focus on creating exposure engines. Exposure engines can be organic or paid.
Taking the time to develop a large social media page can pay dividends over the
course of time. These exposure engines can put thousands of eyeballs on your
content in minutes. They provide a strong launch pad for what you're offering.
With these launch pads, if the offering is quality, it's hard to fail."
Taylor
notes that the selling process was time-consuming but ultimately rewarding. It
shouldn't come as any surprise that investors looking to buy a business -- especially
a seven-figure business -- are going to do their due diligence before
diving in.
If
you aren't familiar with exposure engines, the idea is quite simple. It's about
getting your listing seen on as many high-visibility websites as possible. It's
worth digging a little deeper into the topic if you're starting to plan your
exit.
2. Prepare long before you
start.
Mike
Angell of Evulse, a self-taught programmer says,
"...the best thing you can do is prepare your site for sale well before
you even consider selling it. This means doing all the little things such as
making all the domain names, hosting accounts etc. under their own
entity."
Angell
found the selling process simple and straightforward, which is what every
business owner hopes for. But his advice is definitely worth noting. If
you one day hope to sell your business, start preparing now. Don't wait until
the last minute. Do everything you can to make the transfer a painless process.
3. Talk with a broker.
Alan Kong, a New York based entrepreneur had
this to share: "Make sure to speak to a broker a half year or year before
you sell. You'll learn what can make your business much more attractive to
prospective buyers, which makes for a much easier sale when you're ready."
If
you want to get the most out your business, you need to heed Kong's counsel.
When you know what buyers are looking for, and you can make the right
adjustments in advance, you will find that the sales process goes very
smoothly.
4. Keep extensive records.
Tim Seidler was
building websites on the side until his online efforts started out earning his
employment income.
His
suggestion is to:
"Keep records. Document your earnings, annotate your analytics, save your
receipts. Buyers want proof and they want you to back up that proof. You having
these things ready will not only expedite the process, but it'll give the
buyers confidence that you and your site are the real deal."
Seidler's
comments underscore the importance of transparency. If you are honest and open
in your communication with potential buyers, you will have a much easier time
selling your online business. The same goes for your records. Prospective
buyers will feel more equipped to make a decision when they have the numbers
laid out in front of them.
5. Create systems and
processes.
Brian Casel, a web designer by trade has
experience building WordPress templates, education resources, a successful SaaS
service and a popular podcast.
This
is what he had to say about making a successful online business exit: "If
you're new at this, like I was, it never hurts to ask a lot of questions. A
good broker will answer all of them and then some. As for the business itself,
do as much as you can to prepare it to be sellable. Focus on systems,
processes, and do as much as you can to remove yourself from the day-to-day so
that a new owner can easily take over."
As
with Alan Kong, Casel suggests talking with a broker to figure out your next
move. But he also advises getting your business as systematized as
possible. If you can get your business to the point where it doesn't
require your constant involvement, it will be far more attractive to buyers,
whose involvement can also be minimal should they choose to acquire your
business.
A
successful online business exit is what many entrepreneurs dream of, and it is
certainly within reach if you're willing to do the work. After the sale of
a business, some business owners move onto new ventures. Others choose to take
some time off to recoup. Still others seek to give back and start their own
coaching and consulting businesses, or even charitable organizations.
If
you have a bigger vision for your life, and you have the desire to make your
dreams -- and the dreams of others -- a reality, then selling a business may
very well be an important step onto reaching your big goals. But it all
starts with where you are at right now. Are you willing to prepare in advance?
Are you willing to seek out the advice of qualified and experienced brokers?
Will you do the hard work of creating systems and procedures for your business
so that it can run without you?
Learn
how you can make your site more attractive to investors, and focus on how you
can cater to their interests rather than yours. This is a surefire formula for
a smooth sales process.
No comments:
Post a Comment