Buy a Business | Buy a Website



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  • Buy a Business | Buy a Website

    Why don't you buy an established website already making money? It's a cash flow website. That's what every person wants to look for when it comes to finding a business that already makes money.

    In this blog article, I am going to show you

    1. Where to buy a Business
    2. What to look for when it comes to buying a business
    3. What Type of business is best for you

    I want you to look at it this way. When you buy real estate for investment purposes, do you build the house? the apartments? buy the land and legal zoning permits, plumbers? electricians? council fees etc..? the answer is No. When you buy real estate for investments, you look at established real estate with tenants already occupying and living in the apartments and already cash flowing and has been on a cash flow for many years with records of its historical performance, occupancy rate, etc. That's exactly how I want you to look at the business when it comes to finding and buying a business, with that same analogy.

    Your understanding of a Cash Flow Business

    Through the process of buying an active and established cash flowing business, you can see the backend of that business to see how it runs, how it makes money, and how it's marketed so you realize how an online business or a traditional business operates and makes money from scratch on Autopilot cash flowing you 5 to 6 figures per month. That would be the quickest way to find out and learn how a business becomes successful, by looking inside of the business. So if you ever want to start a business from scratch, you've already seen how a successful business runs and operates.

    Here are the Top 10 Best Sites For Sale To Buy a Business

    1. BizBuySell
    2. Flippa
    3. BizQuest
    4. BusinessesForSale
    5. Shopify Exchange Marketplace
    6. Motion Invest
    7. Empire Flippers
    8. Deal Stream
    9. Side Projectors
    10. Latona's

    What to look for when buying a business

    When you browse around and you are intending to buy a business, that could be either an online business in which case Flippa or Shopify exchange would be a great choice for you to scout their listings or normal traditional businesses which are listed above.

    Few things you need to know especially if you knew to buy a business.

    1. You have to look at the numbers and the variables

    • How old is the business: So firstly find out how long the business has been operating and that should tell you if the business is 'viable' and can withstand the demand of the market long term. It is always a good sign if the business either maintains or increases in value and revenue if it has been active and operating for more than 5 years+.

    • Gross Profit: Look at the "Average Revenue" or in some websites they may call it "Gross Revenue". What this means is the money that came into the business without taking off the expenses that were needed to operate at the level that generated that revenue.

    • Net Profit: Look at the "Net Profit" or in some websites they may call it "Average Profit". What this means is, after taking off the expenses from the gross, the net clearance on what you made that goes in your pocket or in the business pocket is the profit for your or the business.

    • Profit Margin: You also need to look at the margins that the business has generated. The margins are what tells if the business has generated enough revenue to give you a comfortable salary or income for you, your employees, clients, vendors, and third parties. If each sale you make is in the high figures, then generally the profit margins would be in the low percentile which is normal because that particular business for example generates a high ticket profit per sale, which is more than profitable to run the business and pay a salary to the team or the individual which is why the margins tend to be low which again is a normal thing. A high figure sale tends to have lots of expenses to generate that kind of money especially in a traditional or corporate business which makes sense why the profit margins are low. A business that runs on high-profit margins simply means the business doesn't require many expenses, and it is run so efficiently "Most likely an online business" that doesn't require much money to maintain its operations, so the take-home would be high, the margins would be high and the expenses low. Other traditional businesses that are not online unfortunately don't operate that way because they use lots of human resources, clients, vendors, etc, which requires the business to cover all costs and expenses that profit margins tend to be low which is okay if you're making a high figure per sale. The question is though, Are the margins enough to take home a good income salary. A profit margin that does greater than 30% is doing extremely well.

    • Pageviews and Visitors: When looking for a business to buy, if the business your trying to buy is a traditional offline business, then you need to get the information and reporting from the employer/boss in regards to how many customers come to your place of business per day, per week, per month, etc... That takes place when you meet with the employer and requesting a report to see the average amount of people that visit your store or business per period of time. If you are interested in buying an online business, well then that is already shown for you on the listing.

    • Revenue: Make sure the "Revenue" is Verified. Find out and see where the revenue is coming from and through which platform. Which payment model is used to make the money for the business. Is the business using google AdSense to create revenue? Is the business using a subscription monthly payment to make money, or are they using affiliate links to make money or are they using sponsors from other companies? Are they making money by referring leads to their vendors or clients? If the business your trying to buy is a traditional business, find out how they make their money which most likely is the sale of a product or a service.

    • Asking Price & Valuation: If your intending to buy a business and you locked eyes onto a particular one that motivates you to buy, look at its asking price and then ask for a "valuation" to see if the business asking price is right on the ball. The same thing you do when you shop for real estate, you check out the valuation of the house or apartment to make sure you're getting a good deal, the same thing applies here as well when it comes to buying a business.

    • Traffic Health: If your planning to buy an online business, please look at its Traffic Health. Traffic Health consists of 'Sessions', Average Session Duration, and Bounce Rate. Any business that has a bounce rate over 65% is not retaining their customers well and so the business isn't doing well either which means customers are not finding what they're looking for, or if they did find what they're looking for, the business did not do a good job in facilitating and providing the solution to the customer's problems which either way is bad for business. Make sure your business website retains customers and make sure your website has a bounce rate of 50% or less. If you're looking to buy a traditional business, your bounce rate will be a little different than an online business. So when you have people coming into your store or place of business and they're not buying, that's a bounce rate measurement right there. What is the percentage of customers coming into your business is buying from you? The bounce percentage remains the same from an online bounce rate to a traditional bounce rate. If your running a traditional business, Make sure that at least 50% or more of the customers coming in are buying from you.

    • Marketing: How are they marketing the product? You will learn a lot by knowing how a particular business or a particular niche markets its products and services. Every niche markets its products and services in a different way, which is why I mentioned earlier that buying an established business that cash flows money per month is a valuable experience to have so you know how each business operates and markets its assets in certain strategic ways.

    • Industry Multiple: Find out What the 'Industry Multiple' for that niche of the business is. The higher the Multiple, the more valuable the Niche is in the market, which generally means the business is also valuable if it's doing pretty well too.

    2. Is the business Making Money Month By Month?

    Find out if the business is making money on a month-by-month basis. Is the business your buying a 'seasonal business', if so then expect dips and a raise. If the business is not seasonal, then you need to find out why in such a monthly period there happens to be a dip. Study the report of that business that you're intending to purchase and make sure the revenue has maintained throughout the year or increased year by year or month by month. Do not purchase a business if you see it "Decreasing" or having a decreasing trajectory on a 12 month, 24 months or 36 month period.

    3. The Valuation of the business

    When you have done your due diligence and have decided after doing the work on the numbers for the business that you are inclined to purchase, the last move that needs to take place before offering a price is to have a "valuation" of the business before you begin negotiating the business. To find out what the business is evaluated at i.e Its current Market Value, and once you receive the figure on that, then you can negotiate with the owner within a few thousand bucks.

    What type of business is best for you?

    As a person looking around trying to find your next business deal, the number one ideal situation for your personal success and professional success is to figure out what type of business do you flourish in. What type of business are you most likely to succeed in. Your personality has a lot to do with the type of business that your going to operate, personality and skills you've accumulated over the past years or decade is the best telling way to know which kind of business suits you well. Always remember, your skills and your personality should dictate the type of business that you naturally do well in, and that would be the kind of business you should pursue. Do not pursue a business you do not understand and do not invest in real estate that you do not understand.

    Thank you for reading this blog article before you make a purchase on a business. Make sure you visit the Official Make Money Online Marketplace to browse all the different Business Models that you see fit and you can sign up for FREE and begin posting and sharing any valuable insights, knowledge, experience, How to's, or action steps to find like-minded entrepreneurs, side hustlers and business owners like your self to get you to the next level of your business success, visit us right here to make money online.