When you are set to sell your Internet business the first thing you should do is bring in an experienced Internet business broker. The broker will guide you through the process. The second thing is to identify the stores of business value. At So-Cal Business Brokers we have been selling all manner of Internet businesses for more than two decades. We know what buyers are looking for and what qualifies as the real store of Internet business value. As you get ready to sell, here are the key things you should focus on.
Financial performance
All experienced Internet business brokers know that an Internet business is valued mostly based on its financial performance. A long, consistent track record of growing revenues and strong profits is the most important factor in determining the value of an online based business. Most serious buyers are less interested in businesses whose revenue falls below $1 million. When your revenue is over $1 million you will have lots of groups of buyers paying attention to your business.
Profit margins and consistency matters a lot too to the buyers. Companies with profit margins over 20% are relatively rare thus get more attention. Consistent growth over the last three or more years also makes a business more valuable to buyers.
Processes and controls
Buyers are interested in businesses they can take over without any problem. That is why it is so important that you document all your processes and systems. You also need to ensure you have a team in place to run things in your absence. Buyers are less inclined to purchase a business that is overly dependent on the owner. The first thing our Internet business brokers will do is take you out of the equation and hire or train a management team. We will also ensure that your processes are well documented.
Market factors
Another important thing you have to think about is the market factors that drive your business’ value. Buyers will want to check the following:
- Size of the market you operate in
- If the industry you are in is growing, shrinking or steady.
- If your business is scalable
- How tough your competition is
Customer base
Last but not least you have to consider the customer base. If your Internet business depends on only a handful of major clients it will be hard to sell. Our Internet business broker will help diversify by identifying opportunities.
Give us a chance to sell your Internet business. We will guarantee that you sell fast, to the best buyer and for the best price. Contact us now to take advantage of our free consultation. Our in-house Internet business brokers are always eager to offer the assistance you need.