If you’re thinking of selling your online business, there are some important factors to consider first. Here we help you get started.
If you began your own online business but now want to move on, you might be wondering the best way to bow out. You could simply walk away, or you could sell it to someone else. Selling an online business is not too dissimilar to selling a bricks-and-mortar business. It can often depend on your priorities; do you want a quick sale? Do you want to try and get a good profit out of it?
Once you have decided to sell, you might find yourself a little stuck with where to go next. So, if you’re thinking of selling your online business, here are some top tips to consider before you begin.
In this guide, we’ll help you answer these questions:
- Why do you want to sell your business?
- What do you need to do to make your company sellable?
- How do you value your online business?
- What impact will selling have on your customers?
- How do you find the right buyer?
Deciding Why You Want to Sell Your Online Business
Deciding why you want to sell your business can be a helpful factor in getting the most out of the sale. For instance, not everyone will be looking for a huge profit. Some sellers will prefer a quick sale, or a straightforward, simple process to help them move on.
There are many reasons why you might want to sell your business. Perhaps you’ve taken it as far you can, or you’re struggling to keep up with the demands of the market. You might have even identified a new opportunity in a different area, and you need financial help from the business sale.
For many businesses, selling has always been in the plan. This gives you the chance to grow your online business and then make a big profit, which could have a positive impact on your lifestyle.
Whatever your reason for selling your online business, it’s important to prepare an exit plan and have an idea of how you want to move forward.
How Do You Make Your Company More Sellable?
Once you’ve decided you want to sell your online business, you should take some time to decide how you can make your business look as appealing as possible. Similar to selling a physical business, you should organise and optimise your website to its best.
This means working through your website and making sure everything is in order. This could include removing products that are no longer in stock or making sure everything has a good quality image attached. If you’ve had the same website design for years, consider an upgrade and a fresh look.
Make sure that all your financial matters are in order, ensuring all records are up to date. You might want to consider your conversion rate, sales revenue figures, growth percentage and any important active accounts you have with customers. This can create a straightforward bank of information for potential buyers, making the process much easier.
How Do You Value an Online Business?
Valuing an online business can seem very confusing compared to a bricks-and-mortar business, but it doesn’t have to be. There are many different ways to achieve a valuation of your online business. Of course, you can save yourself the trouble and have an expert help you. Our free, instant business valuation service is a perfect solution.
1. Add Up Your Assets
One of the simplest methods is to add the value of everything the business owns and then subtract any debt and liabilities. This can be a helpful place to start.
2. Multiple of Earnings
Alternatively, a multiple of earnings method can be used. This way is used to value a business based on an expectation of income.
3. Use Your Accounts Figures
If you’re hoping for an accurate valuation of your online business, it might be worth your while to work with an expert like Bizdaq. We’re able to pull together your figures and display your expenses, profits and cash flow in one income statement. This is something that will also be useful for potential buyers.
What Impact Will Selling Have on Your Customers?
If you have a lot of loyal and repeat customers, you might worry about how selling your business will affect them. After all, you’ve probably spent years building up a great customer base, and you don’t necessarily want to sabotage this by selling.
Concern for your customers could have an impact on how you sell your business, and who you sell it to. For instance, if you run an e-commerce site, will the new buyer be able to provide faster shipping times or more product options?
Your buyer needs to make sure the business is right for them, but you should make sure the buyer is right for your business.
How to Find the Right Buyer for Your Business
So, you’ve put your business in order, and everything looks great. How do you find a buyer? Working with an online business agent like Bizdaq could provide you with a wealth of benefits when it comes to attracting buyers.
There’s no catch - sell your business for FREE with Bizdaq. Follow our simple step-by-step process to create your 5-star listing and be on the market in less than 30 minutes. As soon as you’re live over 100,000 buyers will instantly see your listing and will automatically be matched if they’re looking for a business just like yours. Bizdaq will alert you whenever a potential buyer interacts with your business. Any enquiries will be sent to you directly, and you can also track your business’s sale performance.