Develop online businesses and sell? or keep?

by A S M
12 replies
Hi guys

If you could develop new online businesses and prove in the short run that it can be profitable ... would you prefer to auction/sell the site for a good profit ? or keep the business and develop a new one with the short run revenue you made?
#businesses #develop #online #sell
  • Profile picture of the author AlexGeorge
    If the site was making a decent income I would probably keep it. My aim is to get to double of what I'm making at work, so I can quit and go live in Greece and be with my peoples I think selling bits off would come after I know I have a reliable monthly income coming in.
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  • Profile picture of the author Steve B
    All other things being equal, I think the preferred road would be long term businesses that you owned.

    Why?

    Short term business flipping means you're basically being paid for your time. If you want income, you have to continue creating and selling new projects, one after another. There really isn't any leverage involved. You work by the hour. You do the same thing over and over to earn your money.

    On the other hand, creating businesses that are successful means you not only derive income from them while they are being developed, but at some point you can sell them off as an asset that could potentially be worth many times the amount of investment you put into them. In essence, you are able to leverage your development work into something more valuable than its parts.

    Good luck to you,

    Steve
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  • Profile picture of the author A S M
    Thanks for your replies but we are not talking about a couple of hundred dollars for each project.... im talking about 2 week projects that can develop 2-3 thousand dollars a week and then being sold for at least 4k ... That means 10k a month (2 projects)

    The downside of keeping it (in my mind) is that i'll need to work on the marketing side of the site too.... SEO , PPC finding more affiliates etc .

    I know how to do all that but is it worth doing(requires a lot of time) ? or just sell the projects.. get the cash and make new sites (takes me maximum a week to develop a professional fully established business)
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    • Profile picture of the author Steve B
      Originally Posted by BizDevSolutions View Post

      I know how to do all that but is it worth doing(requires a lot of time) ? or just sell the projects.. get the cash and make new sites (takes me maximum a week to develop a professional fully established business)
      Obviously, you are going to have to be the one to determine your own best business model. Part of that determination should include an evaluation of how you want to spend your working hours. Do you really enjoy the technical aspects of developing web sites? If so, maybe that's your answer.

      One word of caution . . . if you can put up a "professional fully established business" site in a week, and make "at least 4k" from the sale, are you sure that you can duplicate that same feat over and over again into the future?

      Are you positive that the market is going to respond to your business development offer with such gusto that you will have one client after another just waiting for you to get to them?

      The reason I bring this up is simply that I have been involved in small business development for the past 35 years and I have yet to see a new business owner that wasn't typically way more positive about the reaction to his service than what actually resulted when his business went online.

      So, it's up to you how you proceed. If it were me, I would opt for my own business.

      The best to you, whatever you decide.

      Steve
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      • Profile picture of the author A S M
        Originally Posted by Steve B View Post

        One word of caution . . . if you can put up a "professional fully established business" site in a week, and make "at least 4k" from the sale, are you sure that you can duplicate that same feat over and over again into the future?
        That's why im leaning towards selling them ... because I can make a spike in sales for the first couple of weeks .. then it dies away. People buying the site though will not be looking to buy it because it can make a good profit weekly ... but because it has potential to make that much with minimal marketing efforts and that the products are proven to be good.

        But I can also take those quick sales and develop 1-2 more sites easily and get those to make quick sales too ...... pff
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        • Profile picture of the author MarketMaster13
          If the business can give you an equivalent value or more than you are planning to sell it at in the long run then why sell it?
          I would keep it,make money with it and maybe develop more for sale.
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        • Profile picture of the author Jerry Belcourt
          Originally Posted by BizDevSolutions View Post

          That's why im leaning towards selling them ... because I can make a spike in sales for the first couple of weeks .. then it dies away. People buying the site though will not be looking to buy it because it can make a good profit weekly ... but because it has potential to make that much with minimal marketing efforts and that the products are proven to be good.

          But I can also take those quick sales and develop 1-2 more sites easily and get those to make quick sales too ...... pff
          I think you answered your question! If you can sustain it, I think its
          a great model. You would probably want to start outsourcing parts
          of it that can be so you don't burn out too quickly.

          I say stack the cash until it either doesn't work or you find something
          that interests you more.
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  • Profile picture of the author TheFury
    Originally Posted by BizDevSolutions View Post

    Hi guys

    If you could develop new online businesses and prove in the short run that it can be profitable ... would you prefer to auction/sell the site for a good profit ? or keep the business and develop a new one with the short run revenue you made?
    I doubt you get paid anywhere near fair value selling a small business but the real driver is what valuation you are getting. I think in general though, bigger the business, the more money it makes and the higher multiple it gets, so better to grow things.
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  • Profile picture of the author A S M
    Yeah Jerry thats right ... I came to the conclusion where Ill keep the ones making a decent income in the first couple of weeks and sell the ones that aren't
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  • Profile picture of the author Lokahi
    I'd keep the business and try to double or triple the income, since there's an assumption things will only get better. If the business is stagnant and I felt there was nowhere else to go (but still profitable niche, just not interested or no time), then I would sell.
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    • Profile picture of the author escribe
      I'd say try to build it up to a sustainable level. Then if it dies or the love is gone, sell it.
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  • Profile picture of the author ConnerHogan
    Originally Posted by BizDevSolutions View Post

    Hi guys

    If you could develop new online businesses and prove in the short run that it can be profitable ... would you prefer to auction/sell the site for a good profit ? or keep the business and develop a new one with the short run revenue you made?
    I would sell the business for a big payday. It will be profitable for a short time, but the skills of building a business is what pays more in the long run.

    You should have them subscribe to you to keep up to date training. Training to keep the business they bought profitable. But charge them monthly, $25 or $50.

    You can always build a business again, and then sell it to someone else on that list. You are making your customers happy, and they in turn listen to what you have to say.

    More trust, more sales bottom line.
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