Should You Buy an Existing Online Business?
Should you build your own website from scratch, or should you buy an existing online
business? Buying an existing website solves several problems: 1. You don't have to build it;
2. You can learn how to operate it from its current owner; and 3. You start out with a
known revenue stream. But is a particular existing online business really a wise investment?
Answer the following questions before parting with your hard-earned money.
• How long has the site been in business?
• Who are the sites competitors? Is the owner selling because a major
competitor is coming online?
• Is the sites owner selling because a technology the site sells or uses is
• Is the site's revenue verifiable?
• What is the annual growth in revenue?
• Do you get an existing customer base?
• What is the site's online reputation?
• Does the site have complaints at the Better Business Bureau?
• Is the sites daily unique visitors statistic verifiable?
• What is the sites rank in major search engines?
• How many sites link to this site?
• If the site sells a product, who is the supplier? Are there alternate suppliers?
• Do you get any existing inventory?
• If the site sells an information product, do you have the knowledge and
expertise to operate the site?
• What are the costs of running the site?
• What marketing effort has been made and what is the cost of this marketing?
• Are the businesses taxes current?
• Is the business carrying any debt?
• If the business requires a license, when the license expire?
• If the business does online transactions, does it have a valid SSL certificate?
• How long is the site's domain name registered for?
• What type of server hosting does the site use and what is the cost?
• What is the up-time reliability of the current hosting service?
• Do you have the technical capability to maintain the site, or will you be
required to pay for maintenance?
• What are the payment terms to acquire the business? How many years of
profit will be absorbed by payments?
There any may places online to locate an existing online business;
Website Broker, and
Website Properties being a few. If the
answers to the questions in this article related to a specific online business is satisfactory
to you, then you can reduce risk and save lots of time by buying an existing online business
rather than building from scratch.