You don’t have to start from the ground up if you want to have & manage an online business. Many entrepreneurs choose to do so either because they are chanced, have the talents, & energy to do so, but there is another alternative. Consider buying an online business for sale if you want to own a business but don’t want to go through the learning curve of creating traffic, earnings, and clients.

Buying an Online Business compared with Starting an Online Business from scratch

Essentially, buying an internet business put up for sale means you get to avoid the time, money, and expertise commitment necessary to start a new business from the ground up while yet reaping the benefits of owning one.

Buying an online business allows entrepreneurs to skip beyond the challenging elements of starting a business, such as long hours, limited cash flow, system setup, as well as inventory sourcing, traffic & client generation, and so on, and go right to the rewarding aspects of running the business.

When it comes to purchasing a business online, entrepreneurs are presented with the opportunity to invest in a firm that has already shown to be lucrative and whose products are in high demand, making it a desirable asset to acquire. More so, entrepreneurs can invest in existing firms to expand their market share for an industry where they already operate. This makes them a more formidable rival and increasing their chances of dominance.

If purchasing a business for sale online seems more appealing than creating one from the ground up, you should weigh all of the downsides and benefits of it.

Even while it may appear to be a simpler and faster path to success over creating a whole new business from the ground up, there are still hazards. When buying a business for sale online, the initial expenditure is typically considerably larger than when starting your own business from the ground up. There is a possibility that you will take over inefficient or obsolete procedures and systems, hire personnel, and the firm may be exposed to possible liabilities & legal concerns. Because of these, if you’re considering buying an internet business, conducting your own due diligence is critical.

Why is it a Wise Investment to Start an Online Business?

When you purchase a business such as this, you are placing yourself in a position where you can invest in an internet property in the same manner that you would a physical property such as real estate.

Internet Businesses are similar to digital versions of actual properties and very similar to real estate, online business valuations can rise and fall over time. The “space” that digital assets—such as online businesses—occupy on the internet is valuable, & purchasing digital property today can result in a later ROI.

There are several reasons why purchasing an internet business might be a smart investment, in addition to owning valuable digital property: Online companies may create passive revenue, which means they can provide a large monetary output for a modest hourly input. More so, you can do this whilst keeping your regular corporate job, allowing the business owner & operator to make additional money atop their regular wage. Purchasing an internet business may be simple (particularly if you go to the marketplaces listed below), and leaving the business can be also that simple.

Purchasing an internet business can be as involved and time-consuming as you want it to be. However, in either case, it can be an asset that you will cherish that will provide huge returns on investment. This will increase your income streams and help you earn passively. Another thing that fascinates so many people about online business for sale is that you don’t have to dedicate all your time to it. You decide how much time you want to spend on the business; you work on it at your own pass. You are your own boss. Like any business or asset, you can put the business back up for sale.

Pros and Cons of Purchasing a For Sale Online Business

Whichever business model you want to run, whether purchasing an already existing online business or starting your own business from scratch, you can not eliminate the advantages and disadvantages that come with them. So keep in mind that none is intrinsically better than the other. They each have their advantages and downsides; the key is to be aware of them before committing to either.

BENEFITS OF BUYING A FOR SALE ONLINE BUSINESS

  • The hard work has already been done for the buyer.
  • The online business is already in operation, so you don’t have to stress to get it off the ground.
  • The products have been sourced. The new owner of the online business for sale knows where to get what and who will deliver them. This includes suppliers (dropshipping wholesale, manufacturing, and label).
  • Systems have been implemented and the new owner just has to keep the ball rolling.
  • Already established customer base.
  • You can go straight to developing and expanding the business.
  • An online business for sale is an investment opportunity. With time, you will get a return on investment.
  • The new owner also inherits the existing employees.
  • It is also easier to get the needed funds & financing from potential partners who see the potentials of the online business.
  • The new owner is also guaranteed rights to the assets of the online business for sale.

BUYING AN ONLINE BUSINESS FOR SALE HAS ITS DISADVANTAGES, THEY INCLUDE;

  • Risk Tolerance – how daring are you? can you bear losing your money because the online business for sale failed to make you any money? All business have their own risks, online business for sale is not exempted. So if you are not willing to take risks, then it is best to avoid buying an online business.
  • Upfront Cost – the cost of starting your own business from scratch is usually lower than the cost of buying an already established online business for sale.
  • Bound by Current Systems – seamless transition from one system to another is usually difficult with online businesses for sale.
  • Finding appropriate online business for sale can also prove to be a difficult task without the right guidance.
  • Withheld Information – there is a chance that the seller of the online business for sale will withhold useful information from the buyer.
  • Evaluation of the business can prove to be a difficult thing to do too since you can’t see anything for yourself physically.
  • Lack of Influence or control over the choices of development as they have been made for you before you purchased the online business for sale.

Who Should Purchase an Already Existing and Performing Online Business?

For some entrepreneurs, purchasing an internet business is a fantastic idea, but for others, it is not. An entrepreneur who is ready to step into a thriving and profitable online business and is capable of scaling its growth is needed for an online business for sale to survive. Just like certain businesses can only be built from scratch and run by a specific type of entrepreneur.

Not every entrepreneur is capable of doing so, however, the following are the types of business owners that could benefit from it:

  • An entrepreneur who, while not very good at ‘beginning and growing’ internet enterprises, can expand & grow one.
  • Any entrepreneur who doesn’t want to spend the time and effort required to get a new business up from scratch & operating and instead wants to jump straight to the end.
  • An entrepreneur who can assess a company’s strengths and flaws and figure out how to improve them for optimum efficiency.
  • An entrepreneur with the financial resources and drive to purchase and operate a well-established firm.
  • An entrepreneur with a passion for starting businesses and expanding them to their fullest potentials.
  • An entrepreneur who wants to establish a firm that can be grown, but isn’t necessarily there to create and build enterprises they’re enthusiastic about.
  • Any entrepreneur that has built, ran, and grown internet businesses & understands the nitty-gritty of staying afloat.
  • Any entrepreneur who is interested in gaining hands-on experience in operating and expanding an online business for sale.
  • An entrepreneur that is on the lookout for a business opportunity with the potential to yield gains.
  • A risk-taker searching for new challenges & projects to take on.
  • Any entrepreneur seeking ways to earn money while doing their regular 9-5 job.
  • Any entrepreneur seeking to build a lucrative virtual property venture that will yield ROI.

Online Business – The Criteria For Finding One That Is For Sale.

If talks about purchasing an internet business are melodious to your ears and are a challenge you’ll like to take on, then you should first set criteria before shopping for one. This way, you’ll know exactly what you’re looking for.

It’s easy to become wound up in each and every one of the online company listings you encounter on trading marketplaces; but, by defining specific criteria prior to beginning your search, there is every tendency that you will avoid getting too wrapped up in what’s available & never forget what your objectives are.

When seeking a “for sale online business”, the parameters you select for yourself might include:

  • Product Types: You may only wish to buy a company that renders a specific type of service or sell a particular kind of product.
  • Niche: You may like to seek online businesses for a specific niche if you’re familiar with it.
  • Certain Industry: You may also limit your search to internet firms for sale in a specific industry that you are familiar with.
  • Business Size: It could be that you are only comfortable with buying an online business for sale with a specific number of workers, distribution sites, sales volume, and so on.
  • Income Earned: Consider whether or not you are only interested in buying an internet business that generates a specific quantity of revenue on an annual basis.
  • Profit Earned: One of your primary concerns may be the profit margin generated by the business.
  • Size of Clientele or Buyers: You could be solely interested in a business that caters to a specific demographic.
  • Model of the Business: Consider cutting down the number of options available to you depending on how goods are gotten.
  • Ecommerce Platform: maybe your interest is solely buying an internet business that uses a specific eCommerce platform.

Where are the Best Places to Sell or Buy an Online or Internet Business?

Yes, I know, there are numerous websites where you may purchase/sell an internet business, every one of them has its unique characteristics that influence the purchasing & selling process, making each one a unique experience.

It all depends on the websites’ setup, you may need to follow different steps to acquire/sell an internet business. Briefly, we will go over some of the common methods for selling online businesses:

1. Marketplaces

This is where Buyers & sellers post their companies or businesses for sale. The role of a marketplace is to connect a buyer to a seller. Some marketplaces’ only job is to link buyers & sellers and leave it up to them to sort out payment arrangements, while others will assist with processing the payment as well as the administrative transition.

Each marketplace is unique and dependent on the users or entrepreneurs that use the platform to advertise their companies. Each marketplace’s success is dependent on the buyers’ and sellers’ trustworthiness, as well as their willingness to give accurate information.

Marketplaces, where you may purchase or sell internet companies, include Shopify Exchange, which is a platform that allows you to sell your products online

2. Websites for Auctions

Buyers can place bids on each business on auction sites.

An example of this kind of platform where you may bid on an online company or business is Flippa.

3. Directly contacting owners

You may also approach internet company owners personally and inquire if they are interested in selling their business.

If this route is how you want to play, make sure you do your homework beforehand before approaching the owner. As a buyer, you need to know what’s a fair price in the market, be prepared to haggle, know when it’s not good to buy, and understand what you’re getting yourself into.

Use tools such as Alexa, Ahrefs, as well as SEMrush as part of your investigation to obtain more insight into the company’s health.

4. Brokers

Purchasing a business with the help of a broker has many advantages, one of them is that it is a personal experience.

Brokers frequently work with buyers & sellers to match the appropriate fits, & they take a share of the transaction, which motivates them to assist firms in finding the ideal fit.

Digital Exits is an example of brokers.

Be on the lookout for the following in a For Sale Online Business

When considering an internet business, you must read the listing thoroughly to ensure that you have all of the information needed to decide whether it’s suitable for you.

Furthermore, you should carefully study each listing to see whether it is a profitable asset to put your money & whether there is a fair prospect of receiving ROI.

The following are aspects of any online business sales listing that you should notice:

  • Make certain it satisfies your requirements: this is really important. make sure that the business fulfills the requirements you drafted in the previous stage. Stick to the parameters you established for a purpose.
  • Analyze the site’s traffic and backlink profile using analytics tools such as SEMrush, Alexa, etc.
  • Perform Whois Lookup and find more information about the website’s owner.
  • Consider why the company is up for sale & look for any inconsistencies in the data, as well as any potential pitfalls or problems the company may encounter, and also any growth prospects.
  • Find out when the company was formed & how many years of operation it has in the bag.
  • Determine if the business has been taken to court for any reason, if so, why, as well as if it was settled or not.
  • Examine the revenue and profit statistics, as well as the disparity between them both. Also, consider recurring revenues, and the many ways the shop makes money.
  • Get the entire profile for overhead costs, monthly & annual expenses.
  • Check to see if the seller’s asking price tally with other prices in the market for similar businesses.
  • Get a sense of how much work goes into managing an online business.
  • Ask about any employees/contractors that have anything to do with the business.
  • Be aware of everything that is included in the sale of an online business.

The Best Marketplaces for Buying and Selling Online Businesses

We’ve done the legwork for you and compiled a list of the top markets for buying an internet company.

#1 Shopify Exchange

On this marketplace, you can buy an online business that uses Shopify as its platform. This marketplace is owned by Shopify and it is dedicated to buying & selling eComm businesses hosted on Shopify. The businesses on the platform are listed in a variety of categories ranging from location, sales channels, type of business, industry, etc. entrepreneurs can also search directly for already established businesses.

On their website, the businesses are listed in categories to make it easy for buyers to find and view details about them.

What are the features that make this a great platform for buying and selling an online business?

  • Have you read the $100 startup? Well with $100 you can own a business on Shopify Exchange and these businesses are called Starter Stores.
  • Hand-picked businesses by Shopify staff
  • Secure money transfer.

Advantages of using Shopify Exchange.

  • Buyers get a guide to, well, guide them on the dos and don’ts of trading on the platform.
  • Buyers are also provided with insights they can act upon to make a wise purchase.
  • The Shopify Staff review businesses to make sure that what is on there is genuine.
  • Sellers have the capability to hide specific details about their businesses until it is sold.
  • Sellers can also use Shopify’s free evaluation tool to help them set a fair market price for their businesses.

Pricing: there is a small fee for the services that Shopify Exchange offers buyers and sellers on the platform. This fee constitutes a small escrow & an exchange charge.

#2 Fe International

This marketplace is suitable for anyone that wants to buy a very big online business. Their job is to offer advice to investors that want to buy or sell an online business. On this marketplace, you can easily access established, hand-vetted investors.

The listings on the platform are up to date and you get all the information needed to make a smart investment decision. You also get the chance to see the benefits of buying a specific business prior to purchasing it.

Fe International has a feature that allows sellers to evaluate their website’s value.

Some features that make FE International stand out:

  • Sellers can protect their businesses by making a private listing
  • Global Service – investors from all around the globe can be found on Fe International. They have over 50k hand-vetted online investors to connect business owners to the right match.
  • More so, there are professional brokers on the platform.

Advantages of FE International

  • You get a free evaluation of your online business
  • Your business can be privately transferred to a buyer on your behalf
  • The brokers assist you in the entire trading process
  • Your business can be sold without any hassle or worries from the legal point of view
  • Have physical offices in the US, UK, and Asia.

Pricing: a fee of 2.5% is charged from the final sales amount.

#3 Flippa

This is an online marketplace where you can sell any online asset. This could be eComm websites, domain names, applications, or thriving online businesses. This is a popular marketplace for investors and entrepreneurs alike.

Buyers get all the reports they want on a business they are interested in. This includes the traffic that the website or business attracts, financial analysis, demographics, etc. this Due diligence report can be purchased for a small fee on the website.

The Flippa Finder helps novices in the online business marketplace to easily discover businesses for a $50 fee.

Sellers on the other hand receive the help they need to list their business by filling out a simple form and for instance, if it is a website or a blog, google analytics can be linked with the Flippa account to prove the traffic the site attracts.

There are categories sellers can list their businesses.

  • Auction listing – 30 working days
  • Classified listing – no time limit

Some of the important features of Flippa include:

  • Flippa offers small businesses loans. Terms and conditions apply. Visit their website to find out more.
  • Partners with Escrow.com for payment processing.
  • Sellers get a free valuation of their businesses.
  • Businesses are neatly categorized.

Advantages of using Flippa

  • Sponsored listings
  • Low-cost businesses are on the platforms
  • Traders on the platform are all verified using government-issued means of identification
  • Secure payment method.

Pricing: Flippa charges different percentages for a range of prices.

  • They charge 10% for a sale of up to $50,000
  • They charge 7.5% for a sale of above $50,000 but not more than $100,000
  • They charge 5% for a sale of over $100,000
  • The partner broker fee is $15.

NB: there are also fixed prices of:

  • $15 for starter websites, iOS & Android applications.
  • $10 fee for domain names
  • And $49 for established websites.

#4 SideProjectors

Do you have an unfinished project you will like to sell? Sideprojectors is the perfect match for you. On this marketplace, you find a rich number of side projects for sale. They have a wide variety of businesses on the platform ranging from websites to blogs, applications, etc.

You can view more on a particular listing when you click on it. SideProjectors are not only known for selling unfinished projects. They also help sellers find buyers for their finished projects as well.

Some of the features are:

  • The ability to increase a listing’s visibility via the sponsored option. They charge a $10 daily sponsorship fee,
  • You get access to important information if you sign up as a member and pay a $3 monthly subscription fee.
  • You can also list a business that you want a co-founder for.

Advantages of using SideProjectors:

  • Project search can be streamlined based on category.
  • All projects are reviewed by a moderation team before it goes live.
  • Buyers & sellers can contact each other through direct messaging.
  • Quality listings are promoted on social media, the website’s homepage, blog, and email newsletters.

Pricing: there are no buyer or seller commissions on the platform. It is just a place where buyers meet sellers.

#5 Digital Exits

This is a marketplace for trading big tech businesses. They function like a website broker helping businesses find suitable buyers. They only deal with businesses with $250 – $5m annual profits. They also have an advisory team that helps sellers maximize the value of their businesses.

How Digital Exits help sellers find buyers.

  • They offer sellers a great marketing plan that suits their businesses.
  • There are also templates for creating an executive summary for the perfect presentations.
  • The transaction process is entirely managed by the advisory team.

Some of the Key Features of Digital Exits Include:

  • International deals are possible on Digital Exits
  • Copywriters on Digital Exits interview sellers to get the relevant information to craft an executive summary.
  • Bank Loans – there are available bank loans to finance businesses.

Advantages of Digital Exits:

  • Brokers help you market your business to over thirteen different channels.
  • They stand-in for the seller and answer any questions the buyers may have
  • Buyers sign a non-disclosure agreement to keep the businesses secure.

Conclusion

Now you’re equipped with the knowledge and information you’ll need to discover an online business or sell your own online business. Use the tools, strategies, and markets listed in this post to locate a fantastic business that you can develop and grow over time.