How to Buy an Online Business
Buy an online business by contacting a broker or CPA, researching the business, negotiating the terms of sale and getting access to the back end of the Web site. Be sure to change all passwords related to an online business after purchase with information from a small business owner in this free video on buying a business.
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Hi, my name is Justyn with Justyn Paul Management. And I'm going to talk with you today about how to buy an on-line business. Now a lot of people purchase on-line businesses because of the cost factor. There is so much less over head. It may cost 50 to 100 dollars a month to run your store in fees and web and website hosting costs. As opposed to thousands of dollars for a small retail outlet in a local mall. So that's one of the reasons that people jump into an on-line business. And that's a great reason to do it. Another reason is, they may find a website that they can purchase for a great deal. Because it's not making money. And you may have expertise in the industry to help you to turn the company around quickly. So those are some reasons that people jump into it. And I highly recommend it. Especially if you don't want to have to do a start up. And go through those processes yourself. The same principles apply though, to an on-line business. As it does to a brick and mortar. Yeah, is it profitable? Make sure that it's profitable. And make sure that you, it's going to make money for you. Or at least you understand the business well enough. That you understand, how it makes money. And how you cut some costs possibly. What's the level of competition? And what software and equipment you're going to need? Those things to consider. But as far as actually how to buy one. I recommend going through a broker. Any chance you can. Yes, it is a another person you've got to pay fee to. But a broker, if it's done wrong. And the business is a bust. Often the broker is responsible for cleaning up the mess. And that can be a huge insurance policy to you. If you've never purchased your business. So I highly recommend going through a broker. Second to that would be working with a CPA that has experience with small business or on-line businesses. They can help you look over the books and the financial. And they usually know what documentation is necessary. So that business can be turned over. And the last step of actually buying a business. Is once you've negotiated all your terms. And you know, how much you're going to be buying. You know what your payments are. You've acquired financing. Usually there's going to be a great deal of documentation that has to be signed. The closing documents, that turn over. And transfer all the ownership to you. Once you have access to a website's back end. And their administration. I always recommend you immediately change all the passwords. So that the previous owner does not have access to data or any information. Not that they would. But it's always smart to change that. Often you do not always know, who has had access to the website's administration. You may think it's just the owner. But it could be the owner and web developers and other people. So it's always, it's always a good idea. Once you have them put the website. To immediately change passwords to further protect it. So once you've found the webs, the company you'd like to purchase. Again, I recommend going through a broker. Review everything you can about the business model. So you fully understand what you're getting into. Make sure you know if it's profitable or not. What you're going to do to turn it around. Then you're going to go through the final documentation process. And as soon as you get it, change passwords. And lock it down.