Entrepreneurship is a challenging journey that requires careful consideration and planning. From developing a product and choosing a business model to finding your target audience and managing startup costs, there are many factors to take into account. For those who are interested in owning a business but don’t want to start from scratch, buying an already established business can be a viable option. In this article, we will explore how prospective business owners can buy an existing company and the best marketplaces to find online businesses for sale.
10 Best Marketplaces for Buying an Online Business
Flippa: Flippa offers a variety of online businesses for sale, including software-as-a-service (SaaS) companies, ecommerce brands, blogs, and affiliate sites. You can view their monthly revenue and monetization methods.
Empire Flippers: Empire Flippers is a marketplace and brokerage where you can explore businesses for sale in different niches and price ranges.
SideProjectors: SideProjectors specializes in sharing side hustles, such as SaaS businesses, ecommerce brands, and mobile apps, at affordable prices.
Niche Investor: Niche Investor lists blogs and profitable websites for sale, providing details about the business’s revenue and monetization strategies.
Motion Invest: Motion Invest offers content websites in various niches and industries, along with hands-on support before and after purchase.
Business Exits: Business Exits showcases highly profitable businesses for sale in different industries, helping you compare their revenues and yearly incomes.
Latona’s: Latona’s is a brokerage where you can browse listings for sale with detailed filtering options.
Acquire.com: Acquire.com connects buyers and sellers in the SaaS and startup spaces, allowing you to evaluate future potential.
BuySellEmpire: BuySellEmpire offers listings in various categories, from ecommerce stores to affiliate sites and Amazon-based businesses.
BizBuySell: BizBuySell is the largest business-for-sale marketplace on the internet, where you can search for online businesses and franchises by location.
Pros of Buying an Online Business
When you buy an existing online business, you can benefit from several advantages:
Easier Funding: Securing financing for a business with a proven track record is easier than starting from scratch.
Established Customer Base: An existing business likely has a loyal customer base and product-market fit.
Brand Awareness: Buying an established business comes with built-in brand awareness.
Ready-to-Go Team: If the business has employees, you have a pre-made team to help run the business.
Understanding of Strengths and Weaknesses: The original owners can provide insights into the business’s strengths and weaknesses.
Cons of Buying an Online Business
However, there are also challenges to consider when buying an online business:
Large Upfront Cost: Buying an established business can require a significant upfront investment.
Renegotiated Contracts: You may need to renegotiate contracts with suppliers and other stakeholders.
Unknown Reason for Sale: Understanding why the current owner is selling is crucial for assessing the business’s future.
Difficulty Making a Mark: It may take time to make the business your own and overcome its existing reputation.
What to Look for When Buying an Online Business
When selecting a business to buy, consider the following factors:
Consistent Financials: Look for businesses with consistent revenue or the potential for growth.
Existing Reputation: Choose a business with a positive reputation to avoid challenges in turning around a negative image.
Current Operations: Assess the business’s operations and processes for efficiency.
Consistent Traffic: Look for businesses with steady traffic from multiple sources.
Future Potential: Evaluate the business’s future potential and market trends.
Future Customer Base: Consider if there is room for expansion into new markets and customer segments.
General Feedback: Listen to what customers say about the business to understand its strengths and weaknesses.
What Types of Online Businesses to Buy
There are various types of online businesses you can buy, including ecommerce stores, SaaS companies, blogs, and affiliate sites.
How to Get a Great Deal on an Online Business
To get the most value for your money when buying an online business, follow these tips:
Search Broadly: Explore multiple platforms and compare prices, revenue, and key factors.
Rate Opportunities Quickly: Use a set of criteria to evaluate each potential business and identify the best opportunities.
Do Your Due Diligence: Research legalities, operations, and potential issues before negotiating.
Negotiate: Don’t be afraid to negotiate the price based on the business’s potential and research findings.
Tips for Buying an Online Business Safely
To ensure a safe transaction when buying an online business, consider the following:
Ignore Aspirational Pitches: Focus on the business’s performance history rather than promises of future success.
Verify the Business Model: Talk to past customers and employees to understand the business’s internal operations.
Consult a Lawyer: Seek legal advice to navigate the buying process and understand the terms of the sale.
Determine Why the Business is for Sale: Understand the reasons behind the sale to assess potential risks.
Confirm Contracts and Deals: Ensure that existing contracts with suppliers and partners remain valid after the sale.
Buy Online Business FAQ
Can I buy an online store?: Yes, platforms like Flippa and Acquire sell ready-to-use ecommerce businesses.
What is the fastest online business to make money?: Dropshipping and selling digital products are quick ways to start making money online.
Is buying an online business risky?: Buying an online business can be risky, so it’s important to conduct thorough research and due diligence.
In conclusion, buying an existing online business can be a rewarding opportunity for entrepreneurs looking to skip the startup phase and leverage an established brand. By carefully evaluating potential businesses, conducting due diligence, and following best practices for a safe transaction, prospective business owners can find success in acquiring an online business.
