subject: Buy an Existing Online Business or Start One from Scratch [print this page] Buy an Existing Online Business or Start One from Scratch
Before you decide buy an online business for sale, you should research every aspect of the operation, and this process is known as "due diligence." This includes the website's sources of revenue, such as sales, affiliate sales, and ad revenue. Also, because these transactions are done online, they should be well-documented and accurate, and you will want to ask the owner to provide access to this information before you proceed any further.
What you should expect
Ideally, you will be able to see live reports that provide current and past information related to the company's finances. If the owner hesitates in sharing this information with you online, request a face-to-face meeting instead that will enable you to review the data together. Note that, at times, unscrupulous individuals have produced altered screen shots to show inflated revenue data, and if screen shots are the only sources of information available to you, you will definitely want to proceed with caution.
Is there a market?
Because the online business for sale that interests you is primarily web-based, this will enable you to do some thorough research through various search engines and other websites, and forums about the industry related to it. If the company has an established customer base, you will probably find a substantial amount of feedback related to the business that will give you an idea of what you will be faced with if you offer to close the deal.
Starting an onlinebusiness from scratch
If you prefer to start your own online business and have a good idea for one, your start-up costs can be relatively small, However, when you take this step, don't believe the myth that having a website is a sure path to becoming rich in a short time while exerting little effort, The reality is that you will need careful planning, creativity, sufficient financing, and a healthy dose of hard work if you want to succeed.
Do I need computer skills?
Note also that having a good product or service to sell will not suffice. With an online business, you will need to develop skills in web design, programming, server technology, and global marketing. You may even become involved in translation, various legal issues, and international accounting practices. This means that you will need a combination of business partners and associates to accomplish all that and grow your business.
Fortunately, the internet offers a vast array of business opportunities to foster strategic alliances to enhance your marketing efforts that is virtually unsurpassed anywhere. This is so because many companies have discovered that forming cooperative online relationships is both simple and profitable. (Ironically, those in the advertising industry have also discovered that the competition has increased along with the possibilities.) On the positive side, you will find that tabulating client preferences and keeping track of potential customers can be done easily online.
