In the recent past, Business Analytics (BA) has gained more and more traction with the…
Hi and welcome to 2014! Hope you had a wonderful and refreshing holiday!
Like I mentioned earlier, I had to take some days off to spend more time with the family and also to re-strategize for this new year. And so, in the coming few days you will be seeing some changes and improvements on this site.
For now let’s start off this year by talking about one of the ways you can kickstart your entrepreneurial journey the easy way, that is, buying an already existing e-Commerce business!
As we do know building any type of business from scratch is no mean task. It doesn’t matter whether it is online or offline. Records indicate that many who tried that route as entrepreneurs quickly discovered how overwhelming and daunting it can really be.
As a result of the issues associated with starting from scratch, many people have been known to go for an already established business. They consider it more rewarding and less tasking to purchase such a business than starting from zero.
Of course, this has its advantages especially since majority of the work involved in getting the business up and running has already been completed. However, there are still several red flags you need to consider before buying an eCommerce business. And so, if you’re considering starting your own online business this year through acquiring an already existing one, I ask that you read this post all through. In it I share with you a few tips that will help you succeed with your acquisition.
What to look out for When Buying An eCommerce Business
1. Review a Detailed Copy of Past Web Logs
According to Server Watch, one of the first things you need to ask the current owner for is their collection of past web logs which allows you to verify the traffic and conversion levels generated in the past. Do not trust solely in what the current owner tells you about the success (or failure) of their business. Taking the time to review important documentation, such as these web logs, will allow you to see the unbiased truth for yourself. Of course, documented evident does beat any verbal reports any day.
2. Research All Incoming Links
In most cases, the current owner whenever they plan to sell a website that they own; will try to push the high number of incoming links they were able to generate within the website as a major selling point. It is fairly easy to become intrigued by a high number, especially if you are familiar with the long-term value backlinks can generate for your new business. However, before you get too excited and ignorantly finalize this deal, take the time to identify the origin of the incoming links. Remember, just because there are a lot within the owner’s website doesn’t mean the links made it there legitimately. Researching their origin will give you the chance to verify this as well. Fortunately, checking the history of incoming links is not as difficult to do as it may seem at first, according to Page 1 Solutions.
3. Focus on the Reputation
The last thing you want to do is invest your hard-earned money and resources into a business you think is successful, but, in reality, has already been driven into the ground. Use Google or any other popular search engine to view the website’s grade and feedback and comments posted and published by customers and clients about this particular business. In some cases, you might be able to turn a negative reputation around over time. However, you need to be able to realistically assess whether or not that would be a reasonable decision to make. Not all businesses can be saved.
4. Examine the Past Financial History
In addition to the website ranking and overall reputation, the financial side of the business has to be examined even more closely before you make any final purchasing decisions. It is highly recommended that you obtain copies of the business’s financial records and banking statements for at least the past two years, according to eCommerce Business Journal. Hiring a professional accountant to review these documents is another great idea, because he or she might be able to find a major issue that you may have overlooked during the initial review.
5. Consider Your Own Business Plan
Think about the amount of money, time and resources you will be investing in this eCommerce business on a short- and long-term basis. Even before you sign your name on the dotted line and finalize the sale or acquisition of the eCommerce business you want, do yourself a favor and create a business plan that reflects the next step. Once all the paperwork has been signed and the sale has been completed, you will need to hit the ground running. Having a definitive plan of action will help you achieve this goal.
Indeed, there are pros and cons when it comes to buying an ecommerce site. however, if you will work with the above tips you will definitely make a good success of your purchase.
Thank you for this article sir..
Thanks for sharing these 5 things to take note of before getting an e-commerce business. This is indeed helpful to know it beforehand.
I never really tried buying an e-commerce business since I have no idea what would be in store for me if I bought one. Good thing I got to read this article. Atleast now I have an idea about it. Thanks for sharing this article Chadrack.