Be Sustainable - How To Buy An Internet Business For Sale

Whenever we hear about sustainability, we more than likely think about energy usage

and how a company can contain its greenhouse gas emissions, while striving to act as a good neighbor to those around it. We should consider a very different interpretation of this word when we are thinking about buying an Internet business for sale. So many opportunities are available to the potential buyer today, because the Web is so important in all our daily lives. It seems that an ever-increasing amount of business takes place over the Internet and as such we can expect a good number of sophisticated Internet business opportunities ahead. Remember that any business conducted over the Web is "virtual." This is not a tangible operation in that respect and you might find it hard to come up with a realistic value. Because this is a dynamic area, there are not many benchmarks to look at. For example, when thinking about a restaurant for sale, you can look at accounting details and industry averages, but when purchasing a website for sale, you will have to be very creative as you work out what value it has, for you.

Take a cold, hard look before you buy a business such as this, and ask yourself exactly what it entails. Does it have a particular hold on any niche area; does it feature specific and more tangible products such as extensive content, for example? Are there loyal clients, and what methods of marketing are typically used to solicit them? You have to be able to see some depth and substance here and more importantly, there has to be a clear path ahead. Continuity and sustainability are your buzzwords, as you conduct your due diligence process.

Very often, when you buy website business assets you will find that it's the brainchild of the seller and you must guard against the loss of continuity, perception and marketability if he or she is no longer involved. Is the business "all about" the personality of the seller? Does he or she have some significant and specific skills that you simply could not do without? It's possible that the outgoing seller would be more than willing to work with you on an ongoing basis, but this is where you need to be very careful indeed. In such a situation, it's not so easy to come up with a non-compete agreement. Typically, with a "bricks and mortar" style of business, the geographical non-compete agreement may be relatively easy to enforce. In Internet circles, you can, to a certain extent, be invisible and still conduct a successful business. What's to stop the outgoing seller from setting up an operation via a third-party elsewhere and conducting business that may be harmful to your operation?

It's absolutely essential to engage the services of competent, legal counsel in this area to design a bulletproof agreement for you. The best approach may be to apportion some of the purchase price, so that it's tied to the non-compete agreement. In other words, you will design a "note" allowing the release of funds over time, as soon as it's evident that the seller is in compliance.

by: Richard K Parker

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