So, you are interested in buying an online business. Congratulations—making the decision is the first step. However, since 90 percent of people who begin the search to buy a business never actually purchase one, realize that you are up against some obstacles. Learning as much as you can about what it takes to successfully buy an online business can help put you in the successful 10 percent.
One of the most important parts of successfully buying an online business is finding your appropriate price level, but most importantly finding a company that is the right fit for you, your interests, and your experience. If you are a sales and marketing expert, for example, look for an online company that does lead generation. If you are great at customer service, look for an online company that will enable you to interact with and assist consumers within the service industry. And if you have always excelled at retail management, keep your eye out for an ecommerce opportunity that will allow you to apply your skill to marketing products on the internet. Overall, whatever you do best should be the most important driving factor of the revenue and profits of a company you consider buying.
Secondly, the company must have a strong online demand. A company that is a strong acquisition opportunity will exhibit characteristics that indicate strong future sales, not just a hot trend of the moment. Many consumers are looking to do more shopping online as personal schedules now are busier than ever. All consumers are not always looking for the lowest price. Healthy competition is a welcomed sign even in completely saturated markets. High demand allows businesses to showcase more to consumers than just a low price, it allows the consumer choices.
Keeping the above advice in mind, don’t get too focused on the “coolness” factor of the product or service offered, however. If the business is growing and you are enjoying the work, the uniqueness of the company becomes much less of an issue.
In addition, it is a good idea to look for an Internet company that has an established client base. The less work you have to do to pull in more business, the more time you can spend sharpening the product or service you offer. With many ecommerce sites, an established customer base will help sustain the business while additional product lines, marketing mediums and processes are explored.
Another key factor is to never lose sight of the bottom line: profits. Sure, it’s great if you love the product or service your online business provides, but that love isn’t going to put food on the table. So the money the business will yield should be the most important consideration.
Overall, realize that the search for a company for purchase can be a daunting task. There are a lot of companies for sale out there, and more than one of them may seem like the “right” one for you. When you are ready to make your final decision, in addition to all the information you’ve gathered on the company and whether or not it is a good fit for your skills, listen to your gut. When you picture yourself running the company five years down the road, are you happy? Do you feel like a successful business owner? If not, you may want to reconsider your offer.
To help you with all the analysis and decisions mentioned above, consider utilizing the services of a business broker. Buying a company is a complex activity that requires a third party to coordinate all the activities of the seller and the buyer. A business broker has the experience and training to assume that role and to make sure you get the most for your money during an Internet business transaction. Keep in mind that buying an Internet related business is very different from buying a brick and mortar business; the Internet channel utilizes very different skill sets for customer lead generation, order fulfillment, and customer service. The business broker must have a detailed understanding of these skill sets in order to effectively facilitate the transactions.