23 January 2008 2 Comments Print This Post  Email This Post

Starting and running your own online business can be extremely rewarding both personally and financially. Currently, I make 100% of my personal earned income from online ventures, that is, excluding investment gains and passive income. I’m a firm believer in the potential of internet based business. In the past, I wrote about the reasons why you should start an online business. Then I wrote a guide on finding dropshippers, choosing an e-commerce solution to host your new business and even ways to start promoting your online business. You have all the tools you need to successfully launch an online business. However, many people simply don’t have the time or they don’t want to bother with the tedious work involved when you start from scratch. Thats fine, there are other options. For those who want to build an additional stream of income without having to put together a site from scratch, buying an existing online business may be the way to go. Here’s what to know about buying an online business.

What to Avoid

First, you definitely want to avoid the “business opportunities” disguised as existing businesses for sale. I talked about these types of businesses when I asked, is it really that easy to make money online? Don’t be tempted by the promises of a great home based business where thousands of dollars will start rolling in. There are many of these turn-key type businesses listed for sale in the same places real existing businesses are listed at so be warned. The point of buying an existing business is to avoid the start up phase and ride the momentum the business already has. You don’t want to buy someone’s cookie cutter site for a few hundred dollars only to compete with the other 100 people he has sold the same site to. You want a site that is established, has traffic, and is currently earning money.

Questions to Ask

These are the questions you want to ask yourself and the seller. Take the time to do the research. Also, realize that the seller may stretching the truth to unload his business.

1. Value: How is the seller pricing the business? How much money does the site currently bring in, and more importantly, how much will it bring in when you take over? Is the business expandable? Can you grow it?
2. Operation: How does the site function? How much work does it require on your part and can you devote that much attention to it? Who maintains the site? Where are the products coming from? How are payments processed?
3. Market: How big is the market? Is it growing? Who are your competitors? What is this site’s advantage over the competition?
4. Site Trends: What are the traffic numbers? Is it growing, declining or staying flat? Where are the visitors coming from?
5. The Big Why: Why is the owner selling? Is there a particular reason the seller no longer wants to pursue the venture?

Where to Find Online Businesses for Sale

The primary site I go to for existing businesses for sale is the Sitepoint marketplace. You’ll also see a lot of businesses for sale in eBay’s businesses for sale section. Just be ready to sort through the legitimate businesses for sale and the “turnkey” ones. Online businesses can be seen for sale through traditional business listing sources such as businesses for sale and BizBuySell. Check out those sites to see whats out there. The great sites get snatched up quickly, trust me I’ve lost out on a few. However, just be patient and check often as new listings appear all the time.  You may just find yourself a great business that fits your needs and desires.