Purchasing any business, whether it’s a brick and mortar store or an online storefront, can fill any buyer with trepidation. And rightly so, there are many aspects to consider for both, and perhaps even more for the digital world because at least when buying a brick and mortar store, the buyer can see the products and the customers, and can visit the warehouse or the office where the business is conducted. A digital online business doesn’t have this comfort cushion so it makes it difficult to relate to what they are buying.
The first aspect to consider is: Suitability. When an entrepreneur is searching for a website business for sale, it should be something that is suitable for them. By suitable, we mean, in line with their own personal vision, personal strengths and enthusiasms. Ideally, choose something that aligns with your own skills and that you find exciting and interesting. The devil is in the details and if you aren’t motivated toward building the business, then it isn’t for you.
Another aspect of suitability is the time involved. Oftentimes, sellers will underestimate the time necessary to get up to speed with the company’s operations. If you just don’t have the time, then don’t dive into those waters.
The second aspect to be considered is: The financials. Make sure to check the business overall for their revenue trends. Ask for financial data in monthly increments and keep in mind that the business may be seasonal, exhibiting growth around the holidays and then falling off. If you see an overwhelming downward trend however, it’s probably best to steer clear of this particular company.
The third aspect to consider is: Traffic. For customers to buy products, they need to land at the website and look around. Some items to consider here include the type of traffic coming to the site; make sure it is a good mix from sources like organic searches, social media, paid campaigns, etc. A mix of traffic means that if one particular channel falls away or dies out, it won’t crush the overall traffic numbers.
Is their potential for growth? Is the company facing stronger competition? Is the company a product of a trend that is dying out? There are many ways to increase traffic while also carving out new traffic channels via social media marketing and paid ad campaigns.
Before looking for a website business for sale to purchase, it’s best to contact professional, knowledgeable brokers of eCommerce business who have decades of experience in the field.