As remote work is increasing, the idea of purchasing an existing online business may inevitably cross your mind.
As in brick-and-mortar businesses, established online ventures have benefits over starting from scratch.
Both can be lucrative, but starting from the ground up will cost more in design and development time, and not have the benefits established ventures will have built in from day one.
Even so, buying an existing online business will take some effort and investigation before jumping in, particularly when it comes to knowing the audience, how to monetize your efforts, and taking stock of the operation and technical demands.
Online business ownership comes with many perks, and you should be able to see the benefit of this choice after making a few considerations.
Why Online Business?
When purchasing a physical business, you may be able to paint a pretty clear picture of how these enterprises operate and what to expect.
Online businesses, however, have a variety of models beyond ecommerce sites that buy and sell goods.
Some other models include:
- SaaS (Software as a Service) – A business that maintains servers, databases, and software accessed over the internet
- Dropshipping – A fulfillment model that outsources handling and shipping products to a third party
- Mobile apps
- Blog and subscriptions sites
Whatever model seems appeals to you, an existing online business is a good bet. Similar to buying an established brick-and-mortar, benefits include:
- An up-and-running business with foundational tasks done
- Existing team who are ready to go
- Easier funding and reliable income
- Established customers
- Brand awareness and marketing
- Already discovered issues and problem-solving solutions
An online business that has been designed and running will allow you to focus right away on making tweaks that can improve its success, but you may want to consider these three tips first.
Tip 1: Investigate Traffic and Audience
An online business has strong potential when it comes to audience, and to tap into that, you should know the existing marketing strategy used to generate traffic.
Some questions that can help determine the audience include:
- Who does the business cater to, and what do I understand about thier demographics?
- What social media platforms appeal to this group?
- What online feedback is the site getting?
There are numerous traffic analytic tools that can help determine how many users are visiting, but for other ways clue in on traffic amounts, check out the site’s:
- Alexa rankings
- SE rankings
- Published interviews
- Advertising pages
Of course, the most accurate picture come from the owner, but doing your own homework can back up any claims.
Tip 2: Monetize Your Interests
Personal interest is a sensible way to choose an online niche, but it comes at a price if that interest is not monetized.
Dig into the financial details of your interests to understand how well they profit, if they provide consistent income, and any details that can help paint a clear picture the cost of acquiring an online business in the desired niche.
Once you know how to monetize your interests, expect to pay 30x the monthly profit to purchase the business.
Tip 3: Operation and Technical Demands
Before making an offer, however, you will need to consider how much effort and expertise it will take to operate.
Speaking with the owner will allow you to get a feel of what exactly you are taking on, what support is needed, and what running the business looks like month-to-month.
Tips of the Trade
Considering buying an established online business, whatever the model, may be on the radar as a profitable and desirable business venture.
There are some tips of the trade that can ease this transition.
Doing your homework first by investigating a desirable website’s audience, traffic, monetization, and operation demands is worth the effort when logging onto online business ownership.
Call Michigan Business Broker at (248) 220-3274 or look at the business listings we currently have on hand to see what might be a fit for you.