Online businesses are thriving and there has never been a better time to build or buy such a business. Many companies operate in an exclusive digital setup, lowering multiple costs with the freedom to conduct business on the move. Online businesses and websites are all the rage for investors who are looking to invest and grow innovative businesses. The reasons for putting up your online business for sale include,
- You are willing to invest in a new idea, post-sale of the current venture.
- Your business has incurred a loss and post-sale, you clear off your debts.
- Any other business situation.
While starting an online business is quite easy, the question is how to sell an online business? If done right, this could be one of your best opportunities to make the most of your online business.
Your Internet business could be a turnkey opportunity for individuals who are willing to embark on an entrepreneurial journey or those who are unsure about which business to start and sceptical about risks involved in setting up a business from scratch. Also, as a buyer, they will not have to figure out the business model, all by themselves, since the seller usually includes a training module about how everything runs.
Once you plan all the necessary arrangements for selling your online business. It’s time to understand the process of proceeding with the sale.
1. Prep up for Sale: Evaluate Analytics data
Before preparing for sale, you need to assure your prospective buyers that they are investing in an asset and not a liability. To assure them, get your website tracked using tools like Google Analytics or similar tools like Clicky (real-time analytics), Piwik (detailed log of individual visitors) etc. And similarly to track your Social Media Marketing performance, use tools like ViralWoot (Twitter), Followerwonk (Pinterest), Quintly (Facebook) etc. This will help you provide statistics of traffic of your site and your social media performance to buyers.
2. Plan your selling platform & list your business
Look for ways where you can arrange to list your business for sale. If you know exactly whom to approach then proceed directly or carefully research appropriate channels – online or offline and list your business. There are many reputed online business marketplaces to list your business for sale. Among them, there is Tobuz – an online marketplace that functions like an ecosystem connecting buyers, sellers, brokers, consultants etc. to facilitate business exchanges comprising of businesses, commercial properties, other business services etc. While registering, list out all the details about your internet business, upload any authentication report or analytics report to inform potential buyers about your site’s past performance etc. Fill in all the details and get your business listed. Once a buyer expresses interest in your business on Tobuz.com, you will get an alert.
3. Be clear on what you are offering
Once you list your business, especially if it is an online business – buyers will expect an SOP – a Standard Operating Procedure. It is basically a guide explaining your business – what it is, how it works, the way it generates revenue, and how it gets the traffic. It should include details such as – list of assets like domains and social network accounts you own, traffic data, and an operations manual. Having this information manual will make it easier for a buyer to understand and grow the business further. If a buyer can visualise the opportunity for further growth, the business has more potential value for sale.
4. Price estimation
Now that you have listed your business and are alerted of buyers, here comes the next step – fixing an estimated price for sale. In deciding the price, it is essential to estimate the right value of your business. For this, you can the seek the assistance of auditors or independent firms specialised in business valuation and consultation service, registered on Tobuz.com. This will serve as an essential third party reference while quoting the sale value for your business. Since this is an online business, you can also think of retaining certain part of your business and selling the rest to the buyer. Have your past financial statements, site traffic data & other important features of the business ready for audit purpose.
5. Finalise the deal
After scrutinising through offers, if necessary take assistance of financial advisors, accountants, legal consultants etc. listed on Tobuz.com to negotiate a valuable deal. Maintain transparency in the process so that both the parties are benefited from the deal. Finalise the deal and get your price paid. Handover your manuals and every piece of instruction, information etc. required to be given for smooth conduct of the business.
The value you get from the final deal can be put to use for investing in a new opportunity. Other reasons aside, if you are planning to start a new business, take the help of Tobuz, this time as a buyer. Starting a business from scratch is thrilling, but you can also skip considerable risk and expenses and simply buy an existing business or take a franchise of some brand available in your city.
Selling an online business is a long and complex process. Tobuz.com can help remove all the frictions involved in selling your online business, so you can focus on getting the maximum value from your efforts.