You can build a business online from scratch . This includes defining your niche, creating a website, building a list of email subscribers and marketing to them, writing blog articles and other content and creating or promoting products.
You will need to wait a while before your online business starts making money. If you have some spare cash, you can purchase an existing business.
You should think twice before you jump in.
What to look for when buying an online business
You are not buying a simple website. You are buying a business that includes customers and products, marketing strategies to make sales and generate leads, social media presences, ongoing advertising campaigns, email lists, and perhaps employees.
You are likely to be taking over a turnkey business. You can either let the business run as before, or you can make changes to it in order to increase profit.
Before you make a purchase, you should check the financials of the online business. Do not rely on the seller’s word.
It’s also not a good idea to buy a business online for sale just because it makes a lot of money. You should also be interested in the niche.
You have to decide if the cost is worth it to not need to create a full-fledged ecommerce business. The cost of successful sites can range from tens of thousands to hundreds of thousand dollars. However, it is possible to build a full-blown online business for as little as a few hundred dollars or a couple of thousand dollars.
What Should you pay?
How can you tell if the seller’s price is fair? You can multiply the business’s annual profit by two to three. Consider the value of your assets, including a a good domain name a recognizable business brand, a a large amount of high-quality website traffic a strong social media presence and a a large email list with responsive names.
A business that is worth purchasing will include five key elements:
- The world is changing
- It is a company with many streams of revenue , and does not rely on one product
- It receives traffic through a number of different sources
- Its revenues are constant from month to months
- Marketing systems are in place
How to find an online business for sale
There are many e-commerce websites for sale, and there are also a lot of places where you can buy them. Remember that just because the site is listed on a well-known platform, doesn’t necessarily mean it is legitimate. You will need to research the seller’s claims regarding traffic and sales.
Online marketplaces offer lists of businesses that are for sale. They are usually arranged by niche market and include statistics such as revenue, profit, website traffic and email subscribers. You can scan hundreds if not thousands of sites that are for sale. You can check out the site online and then send the owner a message through the marketplace messaging system.
Shopify, a popular ecommerce platform, has a marketplace that you can use to find your ideal online business. Shopify provides its own estimation of the value of a website business and its revenue in an easy-to read chart.
You may also come across brokers who are selling the property on behalf of their owners. You can start bargaining with the seller as you communicate. Send a lower offer. Sellers are often flexible, particularly if the website has been for sale for some time.
You can buy a business online at auction sites
Auction sites are a great way to get a deal on an online business. You’ll see a long list of ecommerce sites available for sale, just like you would on a regular marketplace. Instead of paying for the full price or contacting a seller to negotiate, you place a bid through the auction process.
You enter your bid for the online business, just like you would on any other auction site. You may decide to raise your bid if other potential buyers place a higher one. The auctions last for a short time and the winner gets to purchase the website. Beware “shill” bidding, which is when bidders act as if they are representing the website in order to increase the price.
Buying through a broker
Website brokers help to facilitate the purchase and sale of ecommerce businesses. The seller may not have the time to handle potential buyers. He hires a website broker to do this.
The broker will want to protect his reputation by not selling a site that has been hacked. They will also ask you a lot of questions to ensure that you are serious and have the money necessary to purchase the website.
A broker’s experience is another advantage. They are experienced and know how to carry out the transaction. They can also handle any issues that arise. Brokers are only paid when the sale is completed, so they have an incentive to ensure that everything goes smoothly.
Buy Directly from the Website Owner
This last technique can be a little bold. You make a list e-commerce companies in niches that you’re interested in. You may know them as a client or have seen their online ads, or check Facebook pages or forums that are related to your niche and see which sites come up in the comments.
Sign up for their Facebook and email pages and use Alexa.com to find out how popular these sites are. Google can provide a wealth of information about a site, including its financial health.
You can contact the website owner directly by searching the site on Whois.com. You should be polite, show that you’re serious and make a good impression. However, there is no reason to make an immediate offer. You might hear back from them, or you may not.
The Next Steps to Buying the Perfect Online Business
You’re now ready to start your online business. Try all of the above methods and find out which e-commerce websites are the most appealing and offer the best value for money.
Before you make an offer or buy anything, do your research and check the numbers. You should also consider the traffic and the other important aspects of the business.
