The internet is a complex web. It has the potential to bring ease to various business and investment opportunities. It is much easier today to put up a business for sale on online platforms. Online businesses are growing, and investors are looking to invest and grow many innovative businesses. The Internet lowers many costs and provides you with the freedom to operate across the globe. But all is not rosy with businesses, whether they are online or brick-and-mortar.
60 percent of businesses fail to survive and join the list of businesses for sale
Most often, the start-ups face financial difficulties within the first six months, and data suggests that over 60 per cent of start-ups whether online or offline, fail to survive and hence call off their operations. The rest continue to strive, but only a handful of those can carry on their business activities for two years. Take, for instance, an online business: people usually speculate that with their idea, they can mint money in no time. But then why do such entrepreneurs declare bankruptcy and enlist their business for sale?
Some of the common reasons include
1) A business starts showing signs of trouble if there are diminishing returns or any failure in planning/execution.
2) The motivation to continue with the business had wavered, owing to some personal reason or solely because the trade does not seem as lucrative as when one started with it.
3) One could also see oneself being dissociated with the business model, which might cause further disinterest and therefore deterioration of the business.
4) The company grew too fast, and you are looking for new investment opportunities.
The reasons could be endless.
Your online business for sale could be a potential investment opportunity for those embarking on an entrepreneurial journey. And also for those who are unsure about starting a business from scratch and wish to avoid risks involved in setting up a new business. Once you plan all the necessary arrangements for selling your online business, consider the following points:
Transparency in the presentation of company statistics to evaluate its feasibility: The key to putting an online business for sale, or conversely, to buy a business, one needs to rely on data, which presents the statistical health of the company. As a seller, make sure you provide a realistic valuation of how well your business has performed until that point in time to the buyer to help the buyer determine your project’s feasibility.
Seek the help of companies involved in buy/sale of business: Next, there are companies which provide one with complete solutions when it comes to putting up business for sale. Such services get you to fill in complete details about your business including how the company is faring in the market. Post this, the company is listed on the businesses for sale platform and reaches out to potential business buyers. People usually buy a business if they are looking for an investment opportunity or thinking of investing in a particular industry in which such a business operates.
Take help of brokers/consultants assisting in buy/sale of business: Now, one needs to get the company evaluated with a certified evaluator for business valuation of the company. Till yesterday, this evaluation was a tedious task, but now, online platforms like Tobuz can assist the business for sale in dealing with the paperwork and other documentation which would be needed to buy the business. These platforms list consultants whom you can hire very efficiently to help you get the word out in the market and also showcase your business to buyers in the best possible manner.
Selling a business is a complex process. The expectations of the seller may not match with those of the buyers. But the best bet is to ensure enough potential buyers are bidding for your business at any time. And out of this list, emerges an ideal buyer for your business. So go ahead and take full advantage of the new online platforms to put sell your business to the best buyer.