Do you notice an online business you would like to buy? Before you make an offer, know how to buy an online business. Here are tips to receive more profit.
Wondering how to make more money without doing more work? You might want to buy an online business.
Every 30 seconds, over $1.2 million dollars is generated by the e-commerce world. With numbers like this, it’s easy to see why buying online businesses is so lucrative.
However, anytime you invest your money in something new, it pays to know exactly what to expect and what the best approach is going to be. That’s what we’re here for. In this guide, we’ll break down exactly what you need to know to buy and make money from a successful online business. Keep reading, and get ready for a whole new world of income opportunities.
Why Buy an Online Business?
Maybe you’ve considered becoming an entrepreneur. You could build yourself a brand-new business from scratch.
You’ll need to find the perfect niche, research your target audience, build a website, create great content, and figure out the best marketing approach. Don’t forget your social media presence, and creating actual products or promoting affiliate products. The list goes on and on.
Even with all this work, it will take some time for your online business to start making money. For months or even years, you could be sinking funds into the project while waiting for it to become profitable. But then again, you could bypass that whole process and buy an online business that’s already profitable instead.
How to Choose a Quality Internet Business for Sale
When you buy an online business, you’re not just purchasing a website. You’re buying a fully functional business that already has customers and products. You’re buying marketing methods that have been proven to get new leads and sales. You might also be buying a social media presence, ad campaigns that are already going, or even employees and assistants.
Once you buy it, you’ve taken over. You can keep letting it run the way it’s already running, or you can make some changes to try to get more profits. For example, maybe you see something the current management isn’t doing that could help get more sales. After you purchase an online business, it’s yours to do whatever you want with.
Look at the Track Record
While looking at online businesses for sale, make sure to check the track record of profits and sales before you buy. See the financials for yourself – don’t rely on what the seller says.
However, you shouldn’t put your money toward an online business just because it makes a lot of money. Although the profits are important, you also need to be sure to buy a company in a niche that you’re interested in. This will ensure that you’ll stay committed to it in the long run. Plus, if you have an interest in the niche, you’re more likely to be on top of relevant industry changes.
When you buy the business, you shouldn’t have to figure out how to run it. Most sellers include a training in the purchase to show you how it all works. This lets you take a shortcut around most of the work that goes into building a successful business. The company you buy should already be running well – you just need to learn how to do it yourself.
Weigh the Price
Of course, the up-front cost of buying an established online business is higher than the costs of starting one yourself. Although you’re almost certain to save money in the long run, you’ll have to consider if the cost of buying is worth circumventing all the startup work.
The more successful the site, the more you can expect to pay. You can pay tens or hundreds of thousands for a lucrative site. However, small online companies can be found for hundreds or thousands of dollars, too.
To figure out a fair price to pay, try multiplying the business’s annual profits by two or three. Don’t forget to look at whether or not you’re getting a good domain name, assets, branding, lots of site traffic, a strong social media presence, and a good email list in the deal.
In addition to those factors, you should look for an online business that’s growing, to maximize your investment. The best businesses to buy don’t hinge on a single product – they have multiple income streams. They should also attract traffic from a number of different sources.
Look for in-place marketing systems, and revenues that stay consistent across months. If these factors are all present, you know your money is going to go a long way.
Where to Find Online Businesses For Sale
There are a lot of good e-commerce sites you can buy, and there are quite a few places you can look for them, too.
However, no matter where you find the site, you’ll want to be sure to do your research. Just because it’s listed on a reputable source doesn’t mean the site itself is high quality.
Your first step is to decide on the niche you want to target. Then, you can look up niche-specific online marketplaces where that kind of business is for sale. On these marketplaces, you can quickly see the stats for hundreds or thousands of businesses, making it easy to compare. Sites like Flippa and Shopify are some of the most popular marketplaces, but there are plenty more.
When you see one you like, check it out for yourself. If everything looks good, message the owner through the online marketplace for next steps. Ask any questions that will help you make your decision. If the seller is legit, they should answer your questions to the best of their ability.
Ready to Buy an Online Business?
When you buy an online business, you’re not just buying the current profits and customer base. You’re buying the potential for growth, and making an investment in your future.
Owning an online business – or a few – is one of the best ways to set up income streams that you can rely on for years to come. However, you’ll need to protect those investments, too. Wondering how to keep your money safe? Check out our guide here.
If you’re considering buying an established online e-commerce business, contact the E-commerce Attorneys at Revision Legal today using the contact form on this page, or call us directly at 855-473-8474.