The internet has brought about a revolution in various aspects of life and business. Today, it has become rather convenient to sell your business online. All the various aspects involved in the process, such as doing the groundwork, assessing your business’s worth, listing it, identifying potential buyers, and concluding the sale are easily achieved without needing to step out. Not only is it convenient, but it is lucrative as well.
The eCommerce boom shows no signs of slowing down. Instead of sellers seeking out buyers or investors, the present situation has buyers lining up potential businesses to take over. If you’re thinking of selling my business online, then this is a good era to be in. The most in-demand online businesses include:
- E-Commerce Stores – Digital platforms such as Shopify and Amazon allow people to create their stores and sell with ease. It can be a turnkey business or a variation like Amazon FBA in which the company handles the shipping and logistics while you simply sell the products through the store.
- Amazon Affiliate Sites – This is another type of popular business model in which people earn via commissions generated through the Amazon Associates Affiliate program.
- Dropshipping Business – In this setup, the stores source the inventory products from third-party companies who then complete the fulfillment process. Since such businesses do not hold any inventory of their own, there is very little cost associated with holding and storage, and the bulk of the operation is focused on retail fulfillment.
- Mobile Applications – There is a big market out there for mobile applications, software, and games for smartphones or tablets based on iOS or Android platforms.
Apart from these, there are several other types of online businesses as well that can be sold for a quick profit. Here are the key advantages of selling your business online.
The process to sell my business online is a fairly straightforward and simple one, as long as you are clear about your reasons to sell and are well-versed in the process. Let us delve a bit more into this.
People sell their businesses for a multitude of reasons. For some, it may be the original plan, to encash their efforts for a handsome bargain. For others, it may be circumstantial. Whether you are looking to move on to other goals in life or a change in your personal situation has led you to the decision, knowing the reasons is important to conduct a successful negotiation process and avoid sell my business online short of its worth.
As mentioned earlier, online businesses are in demand these days. Buyers are constantly on the lookout for businesses that are debt-free, sustainable, and have weathered the storm. To be able to support this claim, you need to organize your financial and operational data.
- Financial Data – This includes profit and loss statements, annual revenue and sales data, recent tax filings, and a detailed list of all monthly expenses such as salary to employees, upkeep of the technical infrastructure, payment for licenses and certificates, outstanding debts, etc. Before you sell my business online you should also compile a list of your suppliers and vendors and the associated contracts with each.
- Operational Data – Apart from the financial health, buyers will also be interested in knowing how hour business is performing. For this, you should gather the key performance indicators such as online traffic to your store, click-to-sale ratio, average cart value, number of monthly returns or replacements, average customer review, etc.
Furthermore, buyers are looking for a business that is easy to take over and easier to run. A clear and transparent ownership structure is more favorable in such a case. Also, a business with standard operating procedures, documented processes, and helpful training manuals gives future owners confidence in the ability to run it sustainably in your absence.
While the reasons to sell my business online may be unique, the expectation of a lucrative reward is shared by all entrepreneurs. However, one of the vital steps in achieving this is setting the apt price for your business. This is done via the business valuation process. If you are seasoned in the art of sell my business online then you may have established your own methods or female to calculate the net worth of your business. However, if you’re new to the process then you may be better off seeking the help of a consultant or a formal business valuation firm.
The process takes into account various factors such as:
- The tenure of the business – businesses over 3 years old are deemed the most favorable
- Variety in inventory – businesses that are not dependent on a single product or a product that is only seasonally in demand are considered more sustainable in the long run
- Financial health – low debt and accounts payable, high sales, robust profits after taxes, etc. are attractive to potential buyers
- Brand strength – customer reviews, word-of-mouth advertising, and online/social media buzz all add up to enhance your brand value
There are several avenues to sell your online business and many other factors that need to be considered. Our detailed guide on the subject will help you traverse the tricky road with ease and reach your destination successfully.