Over the years, you’ve devoted time to building your eCommerce company, but right now, you’re looking for tips on how to sell your ecommerce business.
Fortunately, you don’t have to worry because with the right guidance, you’ll be able to get maximum value for all the effort, time and money you put into growing your business. There are multiple variables out there for you to consider, especially considering that even though the selling process is straight-forward, things could get a little complicated and prolonged if you don’t understand how to go about selling your online business.
For the selling process to run smoothly, it’s important that you get accurate valuation of your business, develop a prospectus, look for potential buyers through the right sources, start negotiations and be ready to train the new buyer on how to effectively run your business after the deal is closed.
What are the reasons to sell an online business?
As a business owner, there are multiple reasons why you might decide to put up your online business for sale. Some of these reasons include, but aren’t limited to, the following:
- Desire for change: Some people, after several years of running a particular business, get bored and desire a change. When this happens, they tend to put up their business for sale and after it’s sold, they take their time to invest in another type of business.
- Need to raise capital: Another reason why people sell off their online businesses might be to raise capital. It could be that they need to raise money for a huge purchase, such as a house. It could also be that they’re trying to raise capital for another bigger project that will guarantee increased and stable cash flow than their current business.
- Death of the actual owner: If you have seen a thriving online store for sale, it could be that the actual owner has died, and the family members aren’t interested in carrying on the business. Based on this, the business is put up for sale so that they can infuse the cash into other things.
- Intentional: There are several business owners out there who set out to build and finally sell off their thriving business. This is called flipping – building a web business with the intention of selling same over time. A lot of people make a living from growing and selling online businesses.
There are also lots of other reasons why people put up their businesses for sale, whether the business is thriving or not.
How do I increase the value of my business?
Before taking that bold step to put up your Internet business for sale, it’s important that you work on increasing the value of the business prior to selling it. Some of the ways through which you can achieve this include, but aren’t limited to, the following:
- Work on improving the cash flow: The first thing a potential buyer would consider is the cash flow capabilities of your business, especially in the future. If your business maintains a great track record of growing cash, it would significantly increase its value.
- Great management: Your business team should be highly-knowledgeable about management. They should have job-specific skills and experience that are combined to put your business at enviable heights, improving your chances of selling at a higher price.
- Strategic planning: Another thing that would help improve your business value and put your business before those who intend to buy online businesses is the availability of properly documented and well-thought-out strategic planning. If you don’t have a strategic business plan for the long-term, be sure to make one right away.
Other factors that would improve the value of your business include high barriers to entry, a diversified revenue base and scalability. You can also sell your business at higher value if you properly time the period of sale. Notably, selling when the market is at its peak maximizes value.
Where do I sell my online business?
There are several places where you can sell your business online. If yours is a small business, worth from $100,000 or less, it’s better to get it sold through classified websites and forums. For medium-sized businesses that are worth from $100,000 to $20 million, brokers are your safest bet in finding, negotiating and finalizing deals with buyers. For larger businesses that are worth $20 million and upwards, then investment banks are the best option for sales.
Some of the places where you can put up your Shopify stores for sale include, but aren’t limited to, the following:
- Digital Exits
- Business Exits
- FE International
- Shopify Exchange
- Warrior Forum
How long would it take to sell my business?
There is no specific timeframe to actualize the sale of your business. The time duration depends on the complexity of your business, the market worth, the popularity of your chosen niche and other key factors. While 28 percent of brokers can sell within 6 months, 31 percent sell within 9 months and 21 percent within 12 months.
What could stop potential buyers from buying your business?
There are several factors that could stop potential buyers from looking your way when you put up your online business for sale. Some of these factors include the following:
- Low traffic
- Minimal possibilities of future growth
- Low profit
- Pending legal actions
- Age of the business
- Discrepancies in information
Working on these issues will help you improve your chances of selling your business quickly and at a fair price.
No matter the reasons you might have in putting your online business up for sale, having access to useful information and tips would make the process easier and quicker. Make sure your business is in good standing and you’re advertising on the right places, depending on the size of your Internet business for sale.