4 Tips for Selling an Online Business

With the rise in the number of online entrepreneurs around the world in the past few years, there has also been an increase in the number of people looking to buy and sell online businesses. As a result, the number of online businesses has increased and so has their value. If you are thinking about selling your online business, you need to do everything you can to not only secure a buyer but also get what you think it is worth. Here are some tips to help you achieve both.

4 Tips for Selling an Online Business

Find the Right Buyer

If you want to sell your online business fast and get a good price for it, you need to find the right buyer. The right buyer will be different for every business, but ideally, you are looking for a buyer that needs what your business can offer them. Buyers are often looking for the right types of customers, traffic, levels of revenue, low expenses, and growth potential.

You can put yourself into a better position of finding the right buyer by auditing your business to see what it would offer such a buyer. For example, your business could be catering to a specific demographic and the right buyer will see the value in that. The right buyer could value organic traffic over aid traffic, or even fast short-term growth over slow long-term growth.

Get Your Business in Order

Before you sell your business, you need to get it in order. For an online business, this is mainly done by ensuring all business processes are in order. You want to make the transition as smooth as possible for the new buyer as very few people want to come in and try to figure out what is going on with a business that is already running.

More importantly, get your financial books in order. Cut out excess and unnecessary expenses and focus on areas of profitability. Doing so will provide evidence that the business will not only give a good return on investment but that this profitability is sustainable and scalable in the future.

Know its Worth

To know how much to ask for for your business, you need to have an accurate valuation for it. Several factors go into determining this value, including its full financial picture, how the business is operated, owner involvement, customer data, sales data, how your business ranks online, and its niche.

Once all these are taken into account, they help determine the multiple. The multiple is a value that is multiplied by the monthly or annual earnings to come up with a business valuation, depending on the method and agreement used. The earnings are calculated by deducting all operating expenses from the gross revenue. Some businesses also come up with this value by taking into account factors such as taxes, depreciation, and other liabilities.

Many other factors are taken into consideration to ensure the right valuation for a smooth sale, but these often depend on whether the seller and buyer want to consider them. For example, the age of the business, market leadership, and innovative products can all affect valuation and might need to be factored in.

Plan Your Exit Early

Lastly, start planning your exit early. Giving yourself enough time to plan for your exit allows you to get your business in order and to brainstorm on the perfect buyer. It also ensures you do not rush important aspects of the sale like the valuation, or finding the right broker or marketplace for your online business.

If you have a good business on your hands and would like to sell it, you need to prepare both yourself and the business for the sale. Selling an online business requires you to find the right buyer who will offer you the right price and having proper planning should help you achieve both of those goals.

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that grow their businesses. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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