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Buying a Business vs starting one.

by babareke
4 replies
Before getting into the United States, I got involved in several startups, most of which failed in a short while.

On getting here, I noticed buying existing businesses is way easier than starting one.
In less than 18 months, we have successfully done 2 acquisitions.

What are your experiences buying an already established business vs starting one?
#business #buying #starting
  • Profile picture of the author maxsi
    YES it is a good method.

    Personally I love JV = joint venture .... 1 person put the money and 1 person create the business. It's a pretty good way to do business.
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  • Profile picture of the author Leadnetwork
    Well, it depends, if you have a bunch of money, no ideas and no time to create something new, then Yeah, why not, you should buy a business or become an investor
    Another road, with no money but with an ambitious idea. The only way is to create a business from the scratch
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  • Profile picture of the author TobiMDD
    If people have enough money why not buying a business



    However if you are talking about internet businesses most of the time you still have to put in the work.
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  • Profile picture of the author dave_hermansen
    Most of my early successes were buying existing websites, improving them and then "flipping" them - selling them for a whole lot more money than I paid for them. In fact, I appeared on Fox Business News and several other publications because of my success.

    There are several keys to being successful at buying existing websites. Here are just a few of them ...

    1. Due diligence - You have to be extremely careful. Check out their backlink profile and check out the sales trends (are they going up or down? - the longer the business has been around, the better picture you have of this and can compare month to month figures over several years).

    2. Is the niche "evergreen" and will last for many years, or is it a trend that may fizzle out soon?

    3. Is there room for improvement? The best website purchases are ones where the current owner is missing opportunities and has undervalued their site because of those missed opportunities. This could be anything from poor site design to not taking PayPal to only taking PayPal to not offering financing (if it is a high ticket website). They may not be taking advantage of on-site enhancements like BOGO offers, limited time discount offers, etc. Other opportunities exist if they have a poor marketing strategy or no/few backlinks (a few solid backlinks may boost your rankings and get you 2-3 times as many orders). I especially like purchasing sites where solid keyword phrases are sitting on page 2 of the SERPs. In other words, look for holes - things you could do better than they did them.

    4. Why are they selling? Does the reason make sense?

    5. Are there any problems with suppliers and can they assure you that you will be able to get the same supplier deals?
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