22 Aug Internet Business Opportunities
There is a wealth of reasons why investing in an established internet business can have distinct advantages when compared to investing offline. That said, finding the ‘right’ internet business opportunity is essential to realizing these benefits and to post sale success.
When searching for a business, buyers often find themselves describing candidates as ‘not a good fit’ but can be unclear on what a good fit might be for them.
This article explores how buyers can assess their skills, background and investment criteriaagainst the spectrum of available e-business models, in order to make the right choice when it comes to acquisition.
Naturally, the ‘right’ business for a buyer depends on the buyer in question and their individual preferences. Different buyers have different skills, level of experience, risk appetites and time to commit to certain projects. It’s important to approach business search with an open and flexible mind. Taking an exploratory approach is the best way to understand the marketplace and options available. Nonetheless to find the ‘right’ business there are certain core factors that are usually considered when deciding whether or not an internet business is a suitable.
Investment Criteria of Buying an Established Business
Taking over an established business (whether off or online) can be a challenge, requiring time, investment and dedication. Ultimately though, the project should be an enjoyable and profitable pursuit.
For some, the decision to purchase an internet business is approached purely from a financial perspective – what do the numbers say? Like real estate, if acquiring an investment property, the interior design and specific location may be irrelevant. The right property is the one that attains the highest rental yield. The same holds true in the world of internet business when analyzed through this lens. The niche and business model may be irrelevant, the ‘right’ business is the one that happens to produce the necessary monthly cash flow and has the highest ROI, compared to other internet businesses for sale (investment properties).
For other buyers however, the go/no go is far from being this black and white and undoubtedly takes account of more qualitative criteria. This is particularly true of buyers who intend on running the online asset as a lifestyle business or a way to make their first move into online. These buyers may pay lip service to the underlying numbers, instead putting more onus on finding a business that matches their interests, passions or particular skill-set.
A common ‘buyer profile’ is when a buyer decides they wish to invest online, but is unsure of the skill-set required to succeed, has little idea about the different niches and finds it difficult to hone in on a specific business model. Being clear on each of one of these is the first step that should be taken when trying to find a business.