Entrepreneurship isn't always easy. For new small business owners, starting a business from scratch can be difficult.
From developing your product and choosing a business model to finding your audience, there's a lot to think about. Of course, there's also the start-up costs and the huge time commitment required to make it work. If you want a business but don't want to start from scratch, another option is to buy an already established business.
Note: This doesn't mean it's less work to buy a business, just that you don't have to start from scratch. Here's how prospective business owners can purchase an existing business to get started right away.
What are the benefits of buying an online business?
If you want to leave the idea side of things to someone else, buying a currently thriving business can have many benefits.
- Stronger foundation: The initial stages of getting your business up and running (often time-consuming and often thankless) have already been completed.
- Easier financing: It may be easier to raise funds for businesses with a proven track record.
- Pre-established customer base: If your business has been profitable for some time, it's safe to assume that it has an existing customer base and has proven market fit for your product.
- Existing brand awareness: Less effort is required to increase brand awareness and build a reputation.
- Ready-to-use team: If you have existing employees, pre-built teams are ready and waiting
- Issues resolved: The original owner will have discovered many of the problems and friction points in the business and (hopefully!) resolved them so you don't have to.
- Secure income: If your business is doing well, you already have the potential for a reliable income
What are the disadvantages of acquiring an online business?
- Large upfront payment: Acquiring an existing successful business often requires significant up-front investment. Prices vary, but it's safe to assume that buying a successful existing business will require a lot of cash.
- Renegotiated contract: Depending on the type of business and agreements signed by previous owners, you may need to renegotiate outstanding deals with suppliers, vendors, influencers, and other key stakeholders.
- Unknown reason for sale: Why are existing owners selling? Will this impact what you can do and what your future holds for your business?
- Difficult to mark: Businesses already come with reputations and pre-existing biases, so it may take some effort to make the business your own.
What should you look out for when buying an online business?
There are 33.1 million small businesses in the United States alone and an estimated 26.5 million e-commerce businesses around the world. There are a lot of established businesses and a lot of choices. So what should you pay attention to when choosing a company to acquire?
Consistent finance
You don't want to buy something that's no good. Ideally, the company you're considering acquiring should be able to show, or at least have the potential to reach, consistent levels of revenue each month. The seller should have no problem sharing the financials of the business with you. In fact, this is something you should definitely do before you consider putting pen to paper and signing a contract.
existing reputation
Changing negative opinions about a business can be difficult, so choosing a brand with an existing positive reputation is a much better option. Check out reviews on sites like Trustpilot, scroll through a brand's social channels, and listen to what people are saying online.
Current operational status
Let's take a look at how the business currently operates. If it looks rusty or outdated, you may have a problem. Changing the situation may require time and resources. Smaller businesses may not have many established operations, but they still need processes in place for key parts of their workflow, such as shipping and an integrated technology stack.
consistent traffic
Online businesses rely on website traffic to survive. The more traffic your site has, the more potential customers you have and the more money you can earn. When choosing a business to acquire, look for steady growth and consistent traffic from multiple sources. The last thing you want to do is rely on traffic from one source, which quickly dries up if the algorithm changes.
Future
Your business may be thriving now, but what will it be like in a few months or years? It's important to assess the future potential of your business. For example, look at whether your best sellers are seasonal products, or whether the products you sell will quickly become obsolete due to current trends.
Future customer base
A company's current customer base may be very healthy, but take note of where there is room for expansion. Who exactly are you targeting? Is your market reaching its limits? Also consider whether there is room to expand into other markets or locations.
General feedback
Knowing what your customers think about your business will determine whether they make the decision to buy it. Consider what kind of positive feedback you might get, not just common complaints. Basically, what do existing customers like and dislike about it? And when it comes to what they don't like, think about what it would take to change that.
What type of online business should you acquire?
Although the term “online business” includes all kinds of business models, the most common types of businesses you can acquire are:
- SaaS brand
- e-commerce companies
- dropshipping brands
- affiliate site
- mobile app
- commercialized service
- Blog/Content Site
- subscription business
- Digital product business
9 Best Marketplaces to Buy Online Businesses
Looking to sell your online business profitably? Look no further than 9 platforms where you can browse, rate, and compare online businesses to buy.
- flippa
- empire flippers
- side projector
- niche investor
- motion invest
- Withdrawal from business
- Mr. Ratna
- Acquire.com
- buy sell empire
1.Flipper
With Flippa, you can browse SaaS companies, e-commerce brands, blogs, and affiliate sites for sale and see their monthly revenue and revenue.
2. Empire Flippers
Empire Flippers is a combination marketplace and brokerage firm. You can filter by monetization style and price to explore businesses for sale in different niches.
3. Side projector
Side Projectors specializes in sharing side projects, from SaaS businesses to e-commerce brands and mobile apps. Prices are lower because projects tend to be smaller.
4. Niche investors
Niche Investor focuses on listing blogs and profitable websites for sale. The listing includes background information about your business, as well as monthly revenue and monetization methods in place.
5. Motion Invest
Browse a variety of sector and industry websites and get hands-on support from the Motion Invest team before, during and after your purchase.
6. Withdrawal from business
Business Exits introduces you to profitable businesses for sale in various niches. Compare earnings and annual salaries in different industries.
7. Latona's
Although Latona's is more of a brokerage than a marketplace, you can still browse for-sale listings with a variety of advanced filtering options.
8. Acquire.com
Acquire.com helps connect buyers and sellers in the SaaS and startup space. Through this platform, you can track your startup's metrics and assess its future potential to help you make decisions.
9. Buying and Selling Empire
At BuySellEmpire, you can browse hundreds of listings in a variety of categories, from e-commerce stores and SaaS membership businesses to affiliate sites and Amazon FBA businesses.
How can I get better deals in online business?
You don't want to waste your money, right? Here's how you can make the most of your money.
look far and wide
By casting a wide net, you can find businesses you may not have considered before. Use a combination of the above methods to source potential companies, buy and compare prices, earnings, and other important factors.
Evaluate opportunities quickly
Use a set of criteria to measure each potential business opportunity without wasting time. For example, suppose you want to rate each of the following factors out of 10:
- Cash flow
- growth potential
- Reason for sale
- Time required for investment
- Existing reputation and customer base
- longevity
Businesses with strong ratings in all of these areas come with higher prices, but you'll find that they come with solid earnings and growth potential.
Please do your due diligence
Before entering into negotiations, research the laws surrounding your business, including tax and operations, and identify any problem areas. The more information you have, the more informed you will be about the offer.
Negotiate
Prices shown are not always fixed. Depending on the opportunity assessment you give your business and the information you discover during the research stage, you can negotiate with the seller to get a better deal.
Tips for safely buying online business
Buying an online business is risky. You may be fooled into making the wrong choice. To ensure safe work, please consider the following points:
- Please do thorough research beforehand.
- Check out their business model by talking to past customers and employees.
- Check financial statements and other important documents with a fine-toothed comb.
- Please consult your attorney or attorney regarding procedures and documentation.
- Ignore the wild sales pitch and stick to the facts.
- Find out why the business is for sale.
- Talk to suppliers and review existing contracts and transactions.
- be careful!
Acquiring an existing online business can yield huge profits. This means you don't have to start from scratch and can piggyback on the success of existing brands that have already proven their audience, product and market fit.
However, it is very important to do your due diligence to ensure you are getting a good deal and buying a business that has the potential to grow.
Frequently Asked Questions About Buying an Online Business
Where can I buy a business online?
Owners sell their online businesses through the following marketplaces:
- flippa
- empire flippers
- side projector
- niche investor
- motion invest
- Withdrawal from business
- Mr. Ratna
- Acquire.com
- buy sell empire
Is it risky to buy an online business?
Purchasing an online business comes with risks. To ensure you are buying from a legitimate company online, conduct thorough research beforehand and review financial statements and other important documents. Be sure to consult an attorney regarding the procedures and paperwork to find the best business for you.
