Buying and Selling a Virtual Business
Buying and Selling an online business
Selling an online business for several million is the dream for many startups. As operating a web based business is often extremely cost effective, the returns on a sale can be even more tempting for those looking to make a relatively quick profit in an industry that is booming despite economic circumstances. However, buying and selling an online business is not usually as easy as it seems and there are some essential steps that, if missed, can thwart even the most determined buyers and sellers.
Give yourself time – rushing into buying and selling an online business can result in serious errors being made, either in something essential like the valuation or in documentation that is required for the process itself. When you’ve decided what you want to do with the business then sit down and consider exactly what is going to be required to get you to the finish line – taking business and legal advice at the stage from those who have experience can be extremely useful.
Get the valuation right – if you overvalue the business then you’re unlikely to find anyone willing to buy it, but if you undervalue the business then you could be losing out. Try to avoid being too optimistic when it comes to the valuation, as this doesn’t instill confidence in potential purchasers. A valuation should be based on hard facts, market realities and on demonstrable potential, as this will provide the most accurate idea of what the business is worth.
Seek advice – many people simply don’t want to pay advisers to understand and then sell a business that they know inside out. However, the difference between the business owner and an adviser with experience in buying an selling an online business is the knowledge of the process, the pitfalls, where savings can be made, and how mistakes can be avoided. If you’re in the process of buying and selling an online business Law Hound offers a focused, fixed price service that comes with the benefit of experience and expertise. We can help you value and prepare for sale or purchase with IT and creative sector specific packages that are efficient and cost effective.