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
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
