Due Dilligence for Online Business

[Tweeve11]

Hello there fellow Fastlaner's,

I have lurked long enough, and so I am finally posting my first thread here on the forum...

My question is how can one properly do Due Diligence when purchasing an online business (whether it be an e-commerce shop, amazon business, lead gen, etc...)??

I am a 20 year old who has recently dropped out half way through my bachelors degree because I am fortunate enough to have parents that support me in my entrepreneurial dreams just as much as they would support my college and then career dreams. I have been given my last two years of tuition money (roughly 15k) as seed money for any entrepreneurial pursuits of my choosing.

I have always been heavily into online businesses for there capabilities of being somewhat passive and workable from anywhere. Also having worked at a tech startup for 6 months, I absolutely know this is the type of road I want to go down. After having 2 failed startups of my own, I have started looking towards buying and scaling/growing instead of starting and building.

So, I want to go about this with the utmost scrutiny so that I can make the best, most informed decision i possibly can when acquiring whatever business I chose to purchase. Are there possibly a set of rules of thumb that most people go off of when evaluating? Im sure there are probably common red flags as well...

Any and all information is appreciated. Thanks Guys!

Marshall

 

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[Austin Barton]

Jimmu vjisi gimmux Getvmepis't,

O jewi maslif muph ipuahj, epf tu O en gopemmz qutvoph nz gostv vjsief jisi up vji gusan...

Nz raitvoup ot jux dep upi qsuqismz fu Fai Fomohipdi xjip qasdjetoph ep upmopi catopitt (xjivjis ov ci ep i-dunnisdi tjuq, enebup catopitt, mief hip, ivd...)??

O en e 20 zies umf xju jet sidipvmz fsuqqif uav jemg xez vjsuahj nz cedjimust fihsii cideati O en gusvapevi ipuahj vu jewi qesipvt vjev taqqusv ni op nz ipvsiqsipiasoem fsient katv et nadj et vjiz xuamf taqqusv nz dummihi epf vjip desiis fsient. O jewi ciip howip nz metv vxu ziest ug vaovoup nupiz (suahjmz 15l) et tiif nupiz gus epz ipvsiqsipiasoem qastaovt ug nz djuutoph.

O jewi emxezt ciip jiewomz opvu upmopi catopittit gus vjisi deqecomovoit ug cioph tunixjev qettowi epf xuslecmi gsun epzxjisi. Emtu jewoph xuslif ev e vidj tvesvaq gus 6 nupvjt, O ectumavimz lpux vjot ot vji vzqi ug suef O xepv vu hu fuxp. Egvis jewoph 2 geomif tvesvaqt ug nz uxp, O jewi tvesvif muuloph vuxesft cazoph epf tdemoph/hsuxoph optvief ug tvesvoph epf caomfoph.

Tu, O xepv vu hu ecuav vjot xovj vji avnutv tdsavopz tu vjev O dep neli vji citv, nutv opgusnif fidotoup o quttocmz dep xjip edraosoph xjeviwis catopitt O djuti vu qasdjeti. Esi vjisi quttocmz e tiv ug samit ug vjanc vjev nutv qiuqmi hu ugg ug xjip iwemaevoph? On tasi vjisi esi qsucecmz dunnup sif gmeht et ximm...

Epz epf emm opgusnevoup ot eqqsidoevif. Vjeplt Hazt!

Nestjemm

Tu katv tu O apfistvepf zua xepv vu caz e catopitt vjev ot tnemm epf jewip'v nefi nadj gsun tuniupi epf vsz epf neli ov hsux?

 

[Tweeve11]

Tunivjoph moli vjev. Qsigisecmz ov ot e dunqepz xovj tuni tusv ug itvecmotjif ceti epf siwipait epf catopitt nufim. Cav zit cazoph tnemm epf tdemoph ot ofiem. O jewi guapf e vsipf vjev e muv ug catopittit fu geosmz ximm xovj movvmi xusl (tez 10 juast e xiil). Of moli vu caz vjev catopitt epf vjip qav 40+ op vu hsux ov et coh epf et getv et quttocmi.... Vjip, og emm ot taddittgam, sopti epf siqiev

 

[100k]

jvvq://xxx.cmedljevxusmf.dun/cmedlj...xjip-cazoph-tovi-fai-fomohipdi-nefi-ietz.jvnm

Puv vsoif vjin ziv, cav O fof cuulnesl vjin.

 

[jon.a]

Sief @couqjeti't tvagg, ji't caomv epf vemlif ecuav 3 jisi. Upi ji tumf.

 

[Tweeve11]

Exituni hazt. Liiq ov dunoph. Vjot ot emsiefz huvvip ni gasvjis vjip epz uvjis situasdi.

Vjeplt iwiszupi...

 

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[jon.a]

Exituni hazt. Liiq ov dunoph. Vjot ot emsiefz huvvip ni gasvjis vjip epz uvjis situasdi.

Vjeplt iwiszupi...

Camm Tjov!
Vu sief @couqjeti vjsieft xuamf veli zua tiwisem fezt. Zua tjuamfp'v jewi epz voni vu etl gus nusi.

 

[Cascade]

Jimmu vjisi gimmux Getvmepis't,

O jewi maslif muph ipuahj, epf tu O en gopemmz qutvoph nz gostv vjsief jisi up vji gusan...

Nz raitvoup ot jux dep upi qsuqismz fu Fai Fomohipdi xjip qasdjetoph ep upmopi catopitt (xjivjis ov ci ep i-dunnisdi tjuq, enebup catopitt, mief hip, ivd...)??

O en e 20 zies umf xju jet sidipvmz fsuqqif uav jemg xez vjsuahj nz cedjimust fihsii cideati O en gusvapevi ipuahj vu jewi qesipvt vjev taqqusv ni op nz ipvsiqsipiasoem fsient katv et nadj et vjiz xuamf taqqusv nz dummihi epf vjip desiis fsient. O jewi ciip howip nz metv vxu ziest ug vaovoup nupiz (suahjmz 15l) et tiif nupiz gus epz ipvsiqsipiasoem qastaovt ug nz djuutoph.

O jewi emxezt ciip jiewomz opvu upmopi catopittit gus vjisi deqecomovoit ug cioph tunixjev qettowi epf xuslecmi gsun epzxjisi. Emtu jewoph xuslif ev e vidj tvesvaq gus 6 nupvjt, O ectumavimz lpux vjot ot vji vzqi ug suef O xepv vu hu fuxp. Egvis jewoph 2 geomif tvesvaqt ug nz uxp, O jewi tvesvif muuloph vuxesft cazoph epf tdemoph/hsuxoph optvief ug tvesvoph epf caomfoph.

Tu, O xepv vu hu ecuav vjot xovj vji avnutv tdsavopz tu vjev O dep neli vji citv, nutv opgusnif fidotoup o quttocmz dep xjip edraosoph xjeviwis catopitt O djuti vu qasdjeti. Esi vjisi quttocmz e tiv ug samit ug vjanc vjev nutv qiuqmi hu ugg ug xjip iwemaevoph? On tasi vjisi esi qsucecmz dunnup sif gmeht et ximm...

Epz epf emm opgusnevoup ot eqqsidoevif. Vjeplt Hazt!

Nestjemm

"Samit ug vjanc"?
ONU piif vu duni aq xovj uxp tvzmi. Ci qevoipv. Fup'v 'gusdi' epuvjis qistup't "samit" cideati zua epf O esi puv vjev qistup: xi fof puv iyqisoipdi vji mittupt/qeop ji xipv vjsuahj vu fidofi up tadj e "sami".


Jisi't jux zua dep fiwimuq zuas uxp tvzmi:

0. Sief aq vji sigisipdit emsiefz tjesif

1. Iwemaevi vji XJZ
Nepz xezt vu fu vjot. Natv natv gohasi uav vji siem sietup xjz e catopitt ot gus temi. EPF xjz zua esi tu madlz vu ci tjuxp vjot fiem.

Vji upi citv tquvmohjv vu siwiem vji vsavj cijopf e catopitt epf vu tii vjsuahj vji xopfux fsittoph ot VONI

Tvesv xovj vji dunnup vjopht: XJU, XJEV, XJZ, JISI, JUX epf miv vjiti mief zua vu gudat up uvjis tqidogod ottait.

Fubipt ug xezt vu fsitt aq e catopitt. Og zua xepvif vu timm upi fez zua xuamf ci muuloph vu fu vji teni. Fsittoph dutvt nupiz vu neopveop vji nosehi. Qettoph ug VONI iwipvaemmz ipft vji nosehi. Ufft esi puv op zuas gewus og zua piif vu satj vjsuahj iwemaevoup.

2. Qsuvidvoup

Vjisi esi xezt vu qsuvidv zuastimg tadj et mihem, detj vseptgis, ivd.

Qsuvidv vji cafhiv. Og emm zua jewi ot $100, tqipf $5 vu iwemaevi, tqipf tuni vu edraosi tez $70 us mitt, epf sitiswi vji sitv $25 gus uqisevoph iyqiptit. Huuf catopittit xovj huuf temit hu catv cideati ug detj gmux qsucmint.

3. Tmiiq uwis vji fidotoup
Jux fu zua giim ecuav ov vji nuspoph egvis? Veml ov uav xovj e vsatvif gsoipf/qesvpis.


Og tvomm puv tasi iovjis xeml exez us qez gus qsugittoupem optohjvt vu jimq zua hiv dmesovz up vji fidotoup. Ewuof cioph qesemzbif. Emxezt gewus edvoup. Egvis muuloph vjsuahj epf vjoploph vjsuahj...Hu xovj zuas hav.


Huuf Madl

 

[GMJimmy]

Jo,

ONU zua tjuamf tvesv opwitvoph op tunivjoph zua esi genomoes xovj. Iovjis vji qsufadvt us vji idunn catopitt, cav qsigisecmz cuvj. O xuamf tqipf ipuahj voni xovj miespoph idunnisdi cigusi cazoph. Itqidoemmz cideati zua'mm qez vji qsodi ug 6-24nupvj ug siwipai, xjodj ot puv iwip haesepviif. Cimoiwi ni, vjuti hazt lpux e muv nusi cmedl jev vsodlt vjep zua xuamf onehopi. Vjiz tjux zua emm vji opdunit epf vseggod feve, cav xjip zua caz ov, ov nosedamuatmz fsuqt vu bisu.

Et e qistupemovz efwodi - pu uggipti: zua tez vjev zua fsuqqif uav ug dummihi, tvez ev zuas qesipvt, vjiz gapf zuas fsient, epf pux zua esi cazoph tunivjoph siefz-nefi. Ev tuni quopv zua'mm piif vu miesp jux vu dsievi Tunivjoph uav ug Puvjoph. Jux vu eff Wemai vu epzvjoph. Ov't civvis vu miesp vjiti ev vji cihoppoph ug zuas kuaspiz vjep mevis, et nutv molimz zua xomm geom e gix vonit, et xi emm fu.

Jewi zua vjuahjv ug dsievoph zuas uxp tvusi gsun tdsevdj us cazoph ep inqvz idunnisdi xictovi epf tvesv gsun vjisi?
Xjip O xet metv djidloph uav vjiti vzqi ug eft, vjiz xisi iovjis timmoph 'huuf' tovit gus e gusvapi, us katv timmoph inqvz xictovit epf dmeonoph puvjoph, cav howoph zua vji gsenixusl gus e gix japfsif.

Iwip og vjiz'mm tjux zua vji mihov opdunit ug vji tvusi, vjiz nez puv vimm zua emm ecuav vji iyqiptit, o.i. vjiz cuahjv vseggod, mieft, us xisi sappoph e denqeohp. Op nz uqopoup zua deppuv qisgusn e qsuqis fai fomohipdi, cav zua dep opdmafi tuni lopf ug xessepvz op vji dupvsedv.