Buying an Internet Business

Personally, I love the online business model. My company now does business in over 60 countries with no inventory, no receivables and a handful of employees; we outsource nearly every key function except customer service and support. I have absolutely no technical expertise. The entire business is automated and it's incredibly profitable. An ideal business model, isn't it?

Perhaps the best part about an online venture is that you can get into one quickly and inexpensively whether you buy an existing one or start one from scratch – although multiples for some successful online ventures are far greater than most bricks-and-mortar businesses because of many of the factors you'll read about here. Additionally, because an online business can be run from anywhere at anytime, it's an ideal business to have if you're not yet ready to take the full plunge into your own business or you like to travel, work remotely or casually (it's 3:00 pm now and I'm in Australia with my family on vacation looking at the famous Sydney Harbor and Opera House… and, even better, people are buying our program right now. Gotta love it!).

Don't be misled thinking it's all fun and games. But, it's the kind of business where, if you put in the effort up-front and automate every aspect of it, it will pay enormous ongoing dividends relative to the time expenditure. Right now, it takes me about 90 minutes maximum each day to operate the business, if at all.

If you want to buy an existing profitable venture, keep in mind that the multiples may be higher than traditional small business valuations since there are so many great benefits to them although they really should not be much greater than an offline business. You should also know that the financials of most pure Internet businesses are generally simpler to investigate because there are generally no cash sales, and almost all of the transactions are via credit card.

Likewise, if you decide to start one from scratch, you can build a website and begin marketing for just a few thousand dollars.

Here's what you need to be aware of when buying an existing online business:

You can locate online businesses for sale at various online businesses-for-sale databases and there's a ton of them on eBay, but many seem like scams to me. There are other websites that specialize in Internet businesses for sale. Plus, most online business for sale databases have an online category.

It's been said that the best business is the world is everybody else's. However, an online venture, when set up and run properly, is, without question, the best business model around. The key, of course, is to provide a profitable product or service in a sustainable business model.

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About the Author

Richard Parker, President of Diomo Corporation

Richard Parker is President of Diomo Corporation – The Business Buyer Resource Center™ and has personally purchased eleven businesses since 1990. He is the author of the most widely used reference resources and strategy guides for buying a business for sale - the How To Buy A Good Business At A Great Price© series. His materials are used by prospective business buyers in over 80 countries.

The recommendations of reading, reference materials or links mentioned, are for general informational purposes only. The materials are intended as a public service and are not a substitute for obtaining professional advice from a qualified firm, person or corporation. Consult the appropriate professional advisor for complete and up-to-the-minute information. These materials do not constitute the rendering of any legal or professional services.