When it comes to starting a successful online business, ordinary seems to be the way to go. In a struggling economy, it’s the everyday products and services— health and beauty products, sports and fitness products, IT and online marketing businesses, etc.—that outshine the novel ones.
In general, most online businesses usually sell for about 2.0 to 4.5 times the seller’s total discretionary income. But there is a certain section of the market—namely, businesses that provide common goods and services that command the higher range of these multiples. Why are these companies selling for so much? Here are a few reasons:
You’ve worked hard to build your business and invested your time, money and passion into seeing it succeed. When it comes time to sell, you want to get the most that you can for all of that work that you put into your enterprise, and that’s why business valuation is of such importance. An accurate valuation will help you to make a fair profit from selling your business and also ensure fairness for buyers.
But just what is considered when creating an accurate valuation? Here are some of the key components:
When you’re preparing to sell your Internet business, you’ll have a number of things to consider and do. As you develop your exit strategy, one thing that you simply can’t afford to neglect is preparing accurate financial statements. While you can tell prospective buyers about your success, your financial statements are the proof that buying your website is a lucrative business opportunity, so you simply can’t underestimate their importance.
Problems with the accuracy of financial statements can jeopardize any deal by:
Ruining buyer trust – If a buyer believes that you intentionally withheld or falsified information, he or she […]
When an online company goes up for sale, the company owners and officers usually place value on different aspects of the business than does a potential buyer. But it is important that sellers consider the factors that will be important to buyers, because these things can ultimately make or break a sale.
Overall, keep in mind that buying or selling an Internet related business is very different from buying or selling a brick and mortar business; the internet channel utilizes very different skill sets for customer lead generation, order fulfillment, and customer service.
In general, buyers seeing Internet businesses are concerned […]