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At one time or another, it seems we were all looking to start an online business to make a part time income -- or maybe even a business that could support us full time. Inevitably, the following question came up:
What web-related business can I start to earn an income?
Now, there's absolutely nothing wrong with this question. However, it implies that the entrepreneur will start from scratch. "What idea can I implement? What existing product, service or program out there can I begin to market and build a business around? How am I going to advertise this business?"
So, instead, let me turn this question around a bit. Instead of trying to build and market a business yourself, why not consider buying an existing business with a proven track record? Why try to re-invent the wheel if you can buy the wheel?
Now, this plan may not apply to everyone as it does require some cash up front (see the P.S. at the bottom of the page for one example of a successful business for under $1000) as well as some time and patience to research the market and potential businesses. But, the payoff can be tremendous.
You obtain a fully functioning (and hopefully profitable) business you can take over and run with. No need to figure out how to market or advertise the business as that should already be built into the existing business model. To expand the business, you may need to do some experimentation and look at other advertising methods that the previous owner may not have tried. But, at least you know what IS working since you're buying a business that works!
I'M NOT THE CHASE MANHATTAN BANK
Now, buying a business doesn't necessarily mean spending a fortune and taking over a multi-million dollar firm with staff of 100 employees. Buying a business can simply mean finding a site that generates just a few hundred dollars a month. And once you find one business that works for you, you can take the profits from that business and either reinvest into your business or search for a larger business to purchase.
WHERE'S SHERLOCK WHEN YOU NEED HIM?
The next logical question is where to find such businesses.
- BizBuySell.com (www.bizbuysell.com) - This site is by far, my favorite site. To view internet-related businesses, choose "Internet Services and Web Sites" under the SERVICE BUSINESSES heading in the Search drop down list on the home page. You can quickly see the asking price, cash flow (net profit), brief description of the business and whether it's relocatable (i.e. can be run from anywhere, including your home). In my opinion, BizBuySell.com has the best quality listings and is regularly updated.
- BusinessBroker.net (www.businessbroker.net) - Usually lists asking price and cash flow (net profits), giving you the ability to quickly figure out if the asking price is reasonable. Don't assume that the asking price you see is the price you'll pay either. Everything is negotiable. This is true for all businesses for sale.
- BusinessesForSale.com (www.businessesforsale.com) - Use the search feature to search for "internet" or "web." Listings show asking price.
- Merger Network (www.mergernetwork.com) - Use the search feature to search for "internet" or "web" in "Small US Sellers" or "International Sellers." Listings show asking price.
- eBay - Businesses for Sale - Websites (http://listings.ebay.com/aw/plistings/list/category11763) - I hesitate to bring this site up, but chances are that if you are searching the web, you'll come across eBay anyway. So, you need to be REALLY careful here. Most of the listings are pretty worthless and there's a lot of fraud and just plain junk out there. However, every once in a while, you may find a site worthy of investigation. Try sorting the listing from highest to lowest asking price (just click on the 'Price' heading) and work your way down.
CAVEAT EMPTOR
If proceed down this path of buying an existing business, you need to be very careful. It's up to you to determine whether the business is legitimate, is making what the owner says it's earning and just makes good sense. So, consider asking the following questions:
- What exactly are you getting?
- Can the current owner sell the business again to another person?
- Can the current owner keep or re-create the business and compete against you?
- What absolute proof can they provide documenting sales, costs, profits, etc.?
- Will they provide financing?
- What type of support will they provide after the sale?
- What references do they have? Have they sold other businesses before?
- What recourse do you have if the business is not what they claim it to be?
There are many more questions to be asked, but these should get you started. Another good place to start is to check out the Buyer's Resources at BizBuySell.com - http://www.bizbuysell.com/buyguide.htm.
DECISIONS, DECISIONS
So, if you're at square one and debating what business to begin, or struggling with successfully marketing your new business, consider purchasing an existing business that's already done the hard work for you. There's a price to pay for that solution, but that benefits can be tremendous.
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