Selling Businesses

[robertbanking]

Hello you very intelligent and amazing people that make up these forums. I truly hope that you are continuing to have amazing success in whatever business goals you aim to reach.

I was kindly wondered about a business strategy that is focused purely on creating online based businesses, marketing them and selling them. For instance creating a niche blog, getting some good sponsors, improving SEO and scaling up marketing, then selling the business. Then keep repeating this process. I kindly wondered what is the most important factors to consider when selling a business and what factors would help it get maximum value please? For instance would marketing play a key role in the price you would expect to get for a business? If anyone kindly had any advice on this i would be forever grateful and thankful for your support.

Sending you lots of good wishes and hope you have a wonderful and amazing life. All the very best to you.

 

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[RightyTighty]

I am not a heavy hitter here but from what I’ve learned so far you are way out over your skis and a change in mind set is needed. It’s laughable to be concerned about the considerations involved in selling a business that doesn’t yet exist. You appear to be looking for a magic formula - well here it is: work hard, solve problems, provide value, keep working hard, execute, work even harder to provide more value, and always keep executing. Success will come.
The path is right in front of you. I wish you the best!

 

[Tau Ceti]

I agree with @RightyTighty on this one. You are putting the cart before the horse here.

Do you know how much work is required to do this?

I was kindly wondered about a business strategy that is focused purely on creating online based businesses, marketing them and selling them. For instance creating a niche blog, getting some good sponsors, improving SEO and scaling up marketing.

This is hard to achieve once, then if you want to repeat this formula, you better have a solid game-plan.
It is not impossible, plenty of people are doing it but they all have paid their dues and struggled until they finally managed to create this kind of system.

So as the person above says, don't worry about selling your website/blog now. Worry about building it and making some money off of it and then in 6 months/ 1 year from now, when you have good organic traffic and a solid business model, you can come back and ask your question again.

At the moment, you need to focus on getting users and make money by providing value. The rest is just mental masturbation.

 

[Eurojanek]

I kindly wondered what is the most important factors to consider when selling a business and what factors would help it get maximum value please? For instance would marketing play a key role in the price you would expect to get for a business? If anyone kindly had any advice on this i would be forever grateful and thankful for your support.

The greater predictability of the future stream of earnings and sustainability the greater value of the enterprise.
So the problem I see wirh your reasoning: you want to pop up them businesses, grow them, and sell quick. But how will you provide the track record of profitability unless you are willing to run it for at least 3 years? Also if the venture is profitable and sustainable why not keep it and milk the profits yourself?

 

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[circleme]

I was kindly wondered about a business strategy that is focused purely on creating online based businesses, marketing them and selling them.

That's basically my whole 'strategy.' I focus heavily on small Total Addressable Markets (TAMs). This means that I'm breaking the Law of Effectiveness, BUT I'm repeating the process to build, scale, and flip over and over again.

The reasons why I choose small TAMs over large ones are:

1. Less competition
2. Cheaper to target in the early stages
3. Easier to automate
4. Requires less customer support

I basically compare the challenges that come with a $20,000 per month business (in my case, SaaS) versus a $2,000 business.

Let's say I'll charge $20 per subscriber. That means 1,000 customers vs. 100. The potential is way bigger with the former one, but the latter will let you sleep comfortably at night AND allows you to diversify. It's way 'easier' to add another venture AFTER your first one is successful (because of the natural ceiling) and automate it than to add another 'income stream' with the first option. There is also a single point of failure with the first option. I know, I know, monogamy over polygamy, but in this case, you are basically transitioning from a single venture to multiple ventures AND diversifying.

But how will you provide the track record of profitability unless you are willing to run it for at least 3 years?

You don't need 3 years at all. I have sold two tiny online 'businesses' in the past, and everyone asked for 12 months.

Also if the venture is profitable and sustainable why not keep it and milk the profits yourself?

There are so many reasons why you might want to sell. Read 'The Millionaire Fastlane ' & 'Unscripted '."