The Time is Now: How and Why to Purchase an Online Company
Purchasing an Online Company
Are you wondering if now is the right time to pull the trigger and buy an online company? Or maybe you’re tired of starting companies from inception and experiencing search engine difficulty.
You can skip the initial phases of creating a website, establishing a clientele, and acquiring backlinks by purchasing an already-established online company.
But how do you choose the best company to purchase, and how do you assess its likelihood of success? More importantly, is the this time right time to invest?
As a business owner with over 15 years of experience starting, leading, and buying companies online, I’ll share my advice with those seeking to buy.
In this article, we are going to explore how to purchase an online company, where to buy these companies, and why it’s the right time.
So let’s get to it!
The Time Has Never Been Better to Buy an Online Company
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The moment is ideal to purchase an online business given the growing trend of online commerce and the ongoing recession – in a post-pandemic world.
According to Entrepreneur, online businesses offer incredible scalability, low overhead, and high margins.
Opportunities are plentiful in the current market, and online companies have shown themselves to be resilient in these tumultuous times. There has been a definite increase in e-commerce businesses that corresponds to the shift of more consumers to online shopping making owning an online business a lucrative venture.
Also, buying an online company is less expensive than purchasing a conventional business and can be a lot more rewarding and passive than the headaches that come with real estate investments.
Anyone can easily launch their own online company or make an investment in one that already exists thanks to the availability of numerous tools and resources. However, with just a little bit of capital and some great due diligence, you can even purchase a cash-flowing business from the very beginning.
Given the uncertain economic conditions, there will be bargains now that a recession is on the horizon Businesses may be seeking to sell their assets or leave the market as the economy changes and they adapt, which could present opportunities for investors. These opportunities could take many forms, from whole companies being significantly lower in purchase price, to lower marketing costs and finding easier, cheaper talent. As I write this article, I am currently looking for a new company to buy to integrate into The Financial Appetite.
Overall, the current environment offers a special chance to join the online business market and benefit from it in a plethora of ways.
Check out my article using the number one online marketplace, Flippa, to help buy and grow your online company here.
The Advantages of Buying an Existing Online Business
Why should I purchase an existing online business? Let’s commence with the fundamentals. There are numerous advantages, such as:
- Established clientele: A current company already has a customer base that you can build upon, reducing the need for costly customer acquisition.
- Domain authority and backlinks: An older website with an established domain and backlinks can help you rank higher on search engines, which is especially valuable if you’re looking to drive traffic to your website.
- Streamlined operations: An existing business likely has established processes and systems in place, making it easier to operate and scale the business.
- Proven revenue stream: You can avoid the uncertainty of starting a new business by purchasing one that already has a proven revenue stream.
Most Profitable Types of Online Businesses
Before diving into where to buy an online business, let’s discuss what types of businesses are most profitable. While there are many profitable niches, some of the most popular include:
- E-commerce: Online retail stores selling physical products.
- Software as a Service (SaaS): Web-based software products that customers pay a monthly or annual fee to use.
- Affiliate marketing: Promoting other companies’ products and earning a commission on sales.
- Content websites: Websites that provide valuable content and earn revenue through advertising or affiliate marketing.
Key Factors to Consider Before Buying an Online Business
When considering purchasing an online business, there are several factors to take into account:
- Niche: Does the business operate in a niche that you’re passionate about and knowledgeable in?
- Revenue: Is the business generating enough revenue to make it a worthwhile investment?
- Competition: How competitive is the niche, and what is the business’s unique value proposition?
- Growth potential: Is there room for growth, or has the business reached its peak?
- Liabilities: Are there any hidden liabilities that could become an issue after purchase?
My latest article on Flippa goes over the key factors to consider in more depth here.
How to Evaluate the SEO Potential of an Online Business
If you’re buying an online business with the goal of ranking higher on search engines, it’s essential to evaluate its SEO potential. Here are some factors to consider:
- Keyword rankings: Analyze the business’s current keyword rankings and identify opportunities for improvement.
- Backlink profile: Look at the business’s backlink profile to ensure it’s high-quality and diverse.
- On-page optimization: Check if the website has strong on-page optimization, including title tags, meta descriptions, and header tags.
The Risks and Pitfalls Of Buying an Online Business
While there are many benefits to buying an online business, there are also risks and pitfalls to be aware of. Here are some potential issues to keep in mind:
- Fraud: Be wary of scams and fake businesses that may be advertised for sale.
- Hidden liabilities: Conduct thorough due diligence to uncover any hidden liabilities, such as unpaid taxes or legal issues.
- Declining market: Be aware of market trends and potential shifts that could impact the business’s revenue and growth potential.
Get a deeper view of all of the associated risks here
How to Negotiate a Fair Purchase Price for an Online Business
It’s time to haggle over a reasonable purchase price once you’ve discovered an online business you’re interested in purchasing. To assist you get the best deal, consider the following advice:
Performing market analysis To determine what is reasonable in the market, investigate comparable businesses and their sales prices.
Evaluation of the company’s worth: To ascertain the company’s overall value, take into account its revenue, profit margins, and possibility for expansion.
Use a professional broker: To aid in the negotiation process and guarantee a fair deal, think about using an expert broker.
Where to Buy and Sell Online Businesses
Now that we’ve covered the key factors to consider when purchasing an online business, let’s dive into where to find businesses for sale. Here are some popular platforms:
- Flippa: A popular marketplace for buying and selling online businesses (check out my latest article on Flippa here)
- Empire Flippers: A curated marketplace for established businesses with a minimum annual profit of $50,000.
- BizBuySell: A platform for buying and selling businesses of all types, including online businesses.
- Or, you could just do some research online and reach out to the business owners of blogs you like and see if they are ready to sell!
A great podcast to start your learning journey is the Jaryd Krause Buy Online Business Podcast. Check it out here
Online Buying Trends
According to digitalcommerce360, online retail sales are expected to reach $6.51 trillion by 2023, with e-commerce websites taking up 22.3% of total retail sales
The most popular online business categories were e-commerce, content websites, and SaaS businesses. These statistics suggest that there is a growing demand for established online businesses and that purchasing one could be a smart investment. To make the most of this trend, it’s important to do your research and choose a business that aligns with your interests and has a proven track record of success. You can also consider working with a professional broker to help you navigate the buying process and negotiate a fair price.Additional Platforms and Ideas
In addition to the platforms mentioned above, here are some additional resources to consider:
- Online forums and communities: Participating in online communities focused on buying and selling businesses can provide valuable insights and networking opportunities.
- Industry-specific marketplaces: Consider exploring industry-specific marketplaces and websites that focus on buying and selling businesses in your niche.
Conclusion
Those who want to skip the early stages of starting a business from scratch may find that purchasing an online business is a wise investment. But before making a buy, it’s crucial to perform in-depth due diligence and assess the company’s likelihood of success. You can make an informed choice and haggle a fair purchase price by taking into account the variables covered in this article and making use of the resources at your disposal. Wishing you luck as you pursue purchasing an online company!
For more valuable money-making ideas and to join our community of entrepreneurs, join us today at The Financial Appetite!
