Purchasing a website allows you to make an income with little effort or to grow it further. Later, you can even sell it at a nice profit. Before you do, read the ten things you need to know first.
Should I Buy a Website or a Bricks-and-Mortar Business?
An online business has access to global markets. On the other hand, a shop housed at a set physical location only caters to those who live or work in its surrounding areas. The sky is the limit if you have a quality product at the right price. A website is available 24/7 so it continues to earn while you sleep.
Should I Buy aWebsiteor Create One?
The initial two years of a website’s life are the most traumatic. The product is being tested live in the marketplace. Your website is continuously being refined to maximize its returns. Only after this period do you start to earn a proper income. Instead, you can buy a website that is fully functional and already generating a healthy profit.
Is It Worthwhile to Buy a Blog?
Yes and no. A blog is a good investment if it has acquired a steady readership. But if its success depended on the personal brand of the previous owner, you run the risk of not keeping the audience satisfied. You also need to know how it makes its money and if there are further avenues to explore to increase revenue. Here’s how to monetize a blog successfully.
Is It Worthwhile to Buy a SaaS Business?
A SaaS business will require a much more substantial investment to purchase. Content-based sites can be run by one individual, but SaaS is fairly complicated. You will also need to afford the monthly running costs of employees and salespeople. You, or someone on your team, must have the technical expertise to handle the software and platform. Here are the issues you must take into account before making this purchase.
Is It Worthwhile to Buy an e-Commerce Store?
With the industry growing by a whopping 23% year-on-year, it is estimated that 95% of all sales will be handled by e-Commerce. But before you jump into an existing e-Commerce store, do a thorough review of its financials. Of course, when buying an online business, financials are just one factor to consider.
Buying a Website from an Auction Site
If you are in the market for an online business selling for under $100,000, you will find plenty of these listed at auction sites. But competition is fierce, and you may be outbid on a worthwhile deal in hardly any time at all.
Getting an Expert to Evaluate the Business You Want to Buy
Although a business broker will charge you a percentage of the sale, you will have greater peace of mind when they have evaluated a business for you. They will help you negotiate a fair price and ensure due diligence.
Finding a Business That’s Not for Sale
If you want zero competition, look for online businesses you might like to own. This gives you time to make a proper assessment. Although many of them will not be interested, you will eventually find one that is.
The Four Trends in Online Business
A business on a downward trend may be failing but could also offer room to turn it around. One on an upward trend makes more each year than the previous period but the trend may not last. The third trend (flat) is a business with a consistent income. Lastly, a non-monetized online site can be monetized.
Businesses You Don’t Want to Touch
If the current owner is spending heavily on advertising and this stops when you buy the business, sales and traffic will drop dramatically. Blackhat SEO tactics will be caught by Google and penalized but you don’t want to be saddled with the company when this happens.
Forewarned is forearmed. Use this guide to steer clear of unsuitable options and to find the perfect online business for you.
