According to industry statistics, over 95% of individuals who begin the search to buy a website business never do! The only way that you'll avoid being in that 95% is by acquiring the right knowledge. Likewise, the only way to ensure that you will become successful in any online business is to be absolutely certain that you purchase the right one. Don't be dismayed, most people do not have a clue what website business is right for them. The amount of websites for sale online can be daunting; the choices are rather enormous. There are many proven tips and techniques that can help you decide what is the right online business for you.
As an example, here are my five rules for any online business I consider buying...
1. It must be a sales and marketing driven business
That's what I do best. I avoid ones where I have to always have leading-edge technology because I'm not an expert at that aspect.
2. It must have some element of exclusivity either in the product or service or within a territory
If not, I have no point of difference to offer prospective customers and maintaining current customers will always be a risk.
3. The product or service must be a high margin item
This way, it's simply a matter of time, persistence, and sales and marketing savvy (my strengths) for me to build the business. Plus, the margins will allow me to try new, creative ways of building the business.
4. There must be a built in demand for the product service
I've learned the hard way that trying to create demand is far too expensive.
5. I do not want to sell anything that competes solely on price
There's no long-term viability in that business model.
These are my rules. Unbreakable, Non-negotiable - No matter what! and Guess What? They are bulletproof. When I find a website business with these in place, and there are plenty, I am always going to be successful. You can certainly follow mine, but I will also show you how to modify them to find the Internet business that makes perfect sense for you.
Develop your Guidelines and Rules
Put together a list of five rules of what any business you plan to purchase must have. Think about this and be very specific. Don't say: "I have to enjoy what I do"...sure that's important, very important in fact. However, if you're in a business that you initially think you're going to like, but you find yourself losing money, I can assure you that you'll learn to hate that business line very quickly!
you probably won't come up with five today. Your list may even change a bit during your search. As you speak to and visit different website owners, search online and conduct your research, you may discover certain things that are added or deleted from your list. That's OK. However, getting this list down pat as soon as possible is fundamental to your success!
Whatever It Is That You Do Best
Next, get a true grip on your skills. Don't pretend to be something that you're not. The rule here is that whatever it is that you do best (sales, marketing, operations, etc.), must be the single most important driving factor of the revenue and profits of any online business you consider purchasing. Repeat the last sentence once again; it holds the key to your success!
With Internet business ownership, one of the main goals is for you to control your own destiny. Don't put yourself in a position where if one employee leaves, you're in big trouble. Your skills must be the fuel that drives the engine.
The right online business for you is one that will thrive from your strengths and not suffer from your weaknesses. Take a long, hard look at yourself. Picture yourself in the business. Of paramount importance is that you must perceive yourself as enjoying the business. If you can't, then there's just no way that you can be successful. The website that you choose has to be one that you'll be proud to own.
Fall In Love With The Profit NOT The Product
Another key factor is to avoid falling in love with the website or product it offers; rather, you must fall in love with the profit and the lifestyle that it can deliver to you. Many buyers begin to dream about all of the exciting things about owning an Internet business and they become delusional about what can realistically be achieved. If the business does not produce the income you need, or provide you with a satisfactory return on your investment, then rest assured, you will learn to detest the business quickly.
Stay Focused - Don't Get Discouraged
During the search phase, it's easy to become discouraged by the vast amount of available websites for sale. Don't get overwhelmed. Approach this methodically. If necessary, rule out the ones that you don't want. Search through listings paying attention to the profits not just the asking price. Understand that listings do not always portray the whole picture.
Send inquiries to the listed contact. Arrange calls and meetings with sellers. Prepare the questions you need to ask. You cannot buy any business from a listing. Navigate through the company's website and meet with the owners whenever possible (either in person or by phone). With each meeting you'll get closer to knowing what is and isn't right for you.