When it comes time for an entrepreneur to put a website business up for sale, there are certain fundamentals that should be in place before doing so. Things like preparing an exit strategy, hiring a professional and experienced eCommerce broker with years of experience selling eCommerce sites and accurately valuating the website should be in place. However, some website business owners find themselves in a position where they feel they need to sell the website company immediately, regardless of the timing, funds, market, etc.
Panic sellers generally are trying to ditch their operation and put their website business up for sale for a couple of reasons: 1) it isn’t turning a profit and they are impatient to wait for it to, and 2) they are reacting to a downward turn in the marketplace and are in fear of losing what they have. While panic selling isn’t ideal, it will calm the business owner’s nerves, but at what price? Panic selling is likely to cause a major loss in profit.
Before reacting to external social and business climate conditions, consult with an experienced eCommerce broker to see what you can do, as a business owner, to calm your nerves and not sell your website company in a blind panic. Further investments in money, time and energy may be all that is needed to grow the company, creating the potential for a large profit once the website business is put up for sale in the future. Selling eCommerce websites is tricky business and acting by pure gut instinct is not ideal.
It’s also possible that an eCommerce broker may not take on the business of selling your website if the financial statements do not depict a healthy profit margin, cash flow with stability and consistent growth. Generally, a website company should be two to three years old with consistent revenue, strong SEO rankings and strong domain name to pique the interest of a professional eCommerce broker.
If you are looking to put your website business up for sale but aren’t sure it’s the right time, consult a professional eCommerce broker to help you decide where to go with what you’ve got. Panic selling only potentially benefits the perspective buyer, so it’s always best to settle your nerves, take a long hard look at the website business and discuss opportunities for growth with an eCommerce broker of your choosing.