Let’s say you own an eCommerce business in a competitive niche primarily reselling branded goods.
What makes that company worth $5,000,000?
Today I took some time out to figure out my “number” and then envision what my company would look like to gain a $5m sale so that I could work backwards.
Ultimately the company will only sell if 1) a bigger company believes there is more profit to be made than the purchase price and that 2) it’s cheaper/easier/quicker to buy the company for $5m than it is to start from scratch.
Aside from outright profits, what makes an eCommerce company valuable?
I thought it’d be useful to me and to others to brain storm what a $5m eCommerce company would look like and get advice from others who have been there.
Here’s what I have so far, interested in more ideas and further validation on the existing ideas. Has anyone here sold an eCommerce business for similar money? What did it look like?
Value Adding Ideas
What makes that company worth $5,000,000?
Today I took some time out to figure out my “number” and then envision what my company would look like to gain a $5m sale so that I could work backwards.
Ultimately the company will only sell if 1) a bigger company believes there is more profit to be made than the purchase price and that 2) it’s cheaper/easier/quicker to buy the company for $5m than it is to start from scratch.
Aside from outright profits, what makes an eCommerce company valuable?
I thought it’d be useful to me and to others to brain storm what a $5m eCommerce company would look like and get advice from others who have been there.
Here’s what I have so far, interested in more ideas and further validation on the existing ideas. Has anyone here sold an eCommerce business for similar money? What did it look like?
Value Adding Ideas
- Outright profit
- Market reach (audience)
- Digital IP such as blog, app, YouTube channel (audience)
- Content such as guides, eBooks etc (audience)
- Own branded goods
- Software or apps
- Subscription product(s)
- High customer lifetime value
- Patents/copyrights
- A USP
- Reputation
- Trade/wholesale accounts
- Not relying on third party platforms like eBay or Amazon
- Systems and processes
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