Biz Buyers

 

Whether you're buying or selling an online business, there is no doubt that it can be a minefield for anyone who has not been through the process before and sometimes even for those who have.

 

When I was thinking about selling my first business I was stunned at how difficult it was to figure out what was "enough" information to give to a buyer. I wanted to share enough to get them to make a decision but not enough for them to take off and set up in competition though. That was in an offline business and in a lot  of ways we all know it can be even easier for someone to do just that in the online world.

 

So for sellers the question becomes how to sell your web business without simply inviting your competitors to check under the hood and see how you've got it all tuned up? But for buyers it becomes how do you evaluate a business, what questions is it fair and reasonable and in some cases even essential to ask to ensure you don't get duped?

 

I've learned the best way to ensure I get a good clear idea of the strengths and weaknesses of a business I'm looking to potentially buy is to engage the services of an experienced online business broker. An experienced broker will work with you to get verifiable information from a seller. A good broker will help you evaluate the business, advise you on how to structure an offer and generally assist both buyer and seller throughout the entire process.

 

Remember the broker typically doesn't get paid until there's a successful sale, and a successful sale is one that will get a buyer into a business that they will grow and maybe even resell down the road. A good broker, who really knows the online business world, will be able to help you identify the best opportunities and bring the buyer and seller together to reach a fair and equitable agreement. It's not a battle and it doesn't need to be, the seller wants to sell, the buyer wants to buy, both need to see the others position and be realistic in their expectations. Regardless of which side of the fence you are on, looking for a win, win is the only mindset to have going into the process. Anything other than that will result in failure and usually on a grand scale.

 

In the early days I struggled to know what to look at to evaluate a website properly. Initially I simply didn't have the knowledge or know which tools and metrics I should be looking at and I felt like it was easy for people who knew more than me (unscrupulous sellers – gasp – yes they're out there too) to take advantage of that lack of knowledge and experience. Over the years I got taken a few times and slowly but surely with each new venture I learned another thing or two about what to look out for, but it was a painful, expensive and ultimately a time consuming process.

 

When I started NextGenBizTools, I did so with the intent that it become a "go-to-resource" for people buying, selling or developing an online business. That initial evaluation needs to be done quickly so you can make a decision if a business is worth your time and trouble to get an offer on the table and that needs to be done relatively quickly but also very carefully.  So it became a pet project of mine to provide a solution to that and give buyers a resource to get that basic research done quickly but also thoroughly.

 

Check out our Buyer Services, we give you a couple of options to be sure you look at all the basics of a website and provide you with a good overview of the strengths and weaknesses of the website before you make an offer. If you decide to go ahead and make an offer on a business we can provide Buyer Assistance to help guide you through the entire process of due diligence to transition and training.

Cheers,