We all work hard to make our own business. We use our
sweat and all the tears we throw in to create something
extraordinary. Finally, after a hard day or when you are angry on your
keyboard, you might wonder with yourself what the end of the game will end up
with? What are you really looking for? Is there a brilliant neon sign
in the form of the word "exit" that shows your final path and
purpose?
The value of your business
For most businesses, the goal is to ultimately sell this
business to another entrepreneur who wants to profit from its sale. It's
unfortunate that most of us do not even know how much our business value, or
even how it sells it, and sometimes we do not know if it can be sold at
all! We have been focusing our business on the online business for many
years, and we've been dealing with a quiet but hungry group of investors
looking to buy digital products.
The demand for profitable digital assets has so far
increased that our brokers have managed to rank 500 at least 5,000 in a
five-year list for two years. So, we can say with confidence: Yes, there
is actually an "exit" sign for your business. At the end of this
article, you'll find out what value your online business is, what buyers are
looking for and how you can get a great dollar for your website content,
software as a Service (SaaS) or commercial stores. (You may also have
noticed the word "agency" in the last paragraph. Selling through
digital agencies is incredibly difficult; to do this, you must maximize your
power to the maximum. Make work with other types of digital sales is far
easier.)
A question that probably will come to you!
If you've made your own digital store that you no longer
want to leave, the first question you are likely to have is: "It looks
great, but how can I get a real price sticker? What do I create? "We
will answer this question, but first, let's talk about why you are currently in
a great position.
Why is SEO as a valuable source of traffic for digital
goods?
The most attractive source of traffic for people who engage
in online businesses is SEO. The advantage of SEO is that once you have
been using it in a high ranking, you can save your targeted web traffic for a few
months without having to make a particular effort, and this is unlike
pay-per-view campaigns per Clicker (PPC), like Facebook advertising, requires
day-to-day monitoring to ensure that there's no strange happening for your
rank and you also do not have to spend a lot.
Optimization for search engines
One of the most important tips for running a successful
online business is to optimize for search engines. Unfortunately, many
companies spend a lot of their website design, but they forget the importance
of optimization for search engines and Internet marketing, and as a result,
their websites are ranked low on search engines. And as a result, their
customers must struggle hard to find them.
How are online businesses really priced?
How to evaluate businesses is a common issue in our
brokerage and we have created an automated valuation tool that brings the value
of your business and our audience is used with all the different projects. Give
During an assessment, you will see a relatively basic
formula:
Look at the 12-month average of your net profit. This
figure will normally be healthy and profitable between 20 and 50 times the
12-month average profit for online businesses. As you approach the number
50 times, you need to be able to show that your business is truly defensible (later
in this article). Some brokers may use the 2x or 3x EBITDA formula, which
represents pre-profit earnings, taxes, and depreciation. There is no big
difference between these two formulas, and depending on which one you use, it
depends on your taste, but if you start using a brand-new online business to
buy and sell it, it's better. You already know how different brokers value
businesses.
Our suggestion
We prefer every month's estimates because they show a larger and more accurate picture of their business and process. It's just
like you can impress Google SERPS with SEO knowledge, so if you know what
you're looking for, you can manipulate this formula to give you a better
rating.
How can you change the situation in your favor?
The best thing to do is to put yourself in the place of the
buyer. One of the questions that is asked here is: "Was I willing to
buy my own business? Why? And why not? "It's a practice that can
lead you to change your business.
Medium net profit
You can increase your net profits in a variety of ways or
reduce your total costs. This is slightly different for different digital
assets. For content sites, content creation costs typically account for a
large share of the cost. You can reduce the cost of doing this by using
content providers who do their work at home and away from work. There are
other costs that may be spent on your business, but they really do not need
them in this business; they say, these are additional costs.
Extra expenses
Other things like SEO tools that you use each month are
likely to be added to the business. Most people do not constantly need to
grow their own business. They may subscribe for a month, get all the
keyword data they need for a while, and then return when they need more
keywords.
Most of the expenses you pay are not extra costs, but it's
good to have this in mind, which can increase the final selling price of your
business.
What happens if you do not cut costs off?
While there are usually a lot of fats that you can cut and
remove from your business, you have to deal with this issue wisely. Some
of the things that you can remove are likely to improve your net profit but
greatly reduce the attractiveness of your business.
Carry loads!
One of the things we see in the e-commerce area is the
packaging and shipping of all customer purchases. They think they are
saving on their own, despite the fact that this may be true, but this is not a
solution to attract potential buyers. It is much more attractive to you to
pay a third party that can ship the product to you. It should be noted
that many shoppers while doing their own online business traveling around the
world, are forced to wait and stay on the coast of Bali for a few months in the
winter!
Your concerns at the start of a business
When selling a business, you do not need to worry about
costs alone, but it's more important to be able to easily connect it to a buyer
and start implementing it. Even if the system you have has additional
costs, such as the use of a third party to handle, be sure to do this because
it makes your business more attractive to buyers.
Duration of work experience
No matter how much work you can show for your business, your the business will be more attractive to the rest, and it's just like keeping your
job at a constant level of profit, or this You have a bullish trend. The the extent to which your business is moving upwards, this effect will be multiplied
several times.
What is the job?
Even though it does not take much to change the length of
your business history, you can invest in the items you need at the beginning of
your business. For example, if you know that your website needs a big
preview and you've been away from sales for 24 months, it's best to immediately
make a great redesign for your website, not that Do this gradually over the 12
months that your business will be priced.
Buying Weak Business
One of the things that exist is that there are certain
buyers who are just looking for businesses that have flourished because of they
can make them with huge discounts and often have the necessary skills to repair
that site. For this, you only need to have a low price for sales, so you can
get up to speed.
Other factors that lead to increased sales
While earnings and length of work experience are two main
factors, there are several less important factors that can help you on your way
and prepare for sale within the 24-12 months that you have for sale., You can
work on them.
1. Minimize the critical points of failure
The critical points of failure in your business are what can
probably make your business more likely to fail. Selling a business that
has one or two critical points is a failure, but you should try to minimize
them as much as possible.
An example of a critical failure point can be the case when
all traffic to your website is only provided through Google. If your site
is penalized by Google's update process, it can overwhelm your entire traffic
and revenue overnight. Similarly, if you are an Amazon affiliate and Amazon
suddenly changes its own terms of service, your users will be blocked for
reasons that you cannot understand or even have time to react to, and this
suddenly brings your income to zero.
Disadvantages of having a single supplier for business
In the e-commerce environment, we sometimes see situations
where an entrepreneur has only one source of supply that can produce its own
product through it. Now what happens if this provider wants to raise
prices or to suddenly and eliminate? The diversity of traffic sources and
multiple monetization strategies for content sites are very valuable for
improving your e-commerce. Every business has its own weaknesses; it's
your job to minimize these weaknesses to the point where you consider the value
of your business to be higher.
2. High traffic levels
More traffic will have a lot to do with higher incomes and
can ultimately increase your net profit. Many buyers are looking for
businesses that can greatly optimize them at any stage of the marketing process. Some
buyers are also able to increase conversion with copywriting or CRO
skills. Although traffic to a website is the most important factor for
success, you should not forget that traffic quality is far more important than
quantity.
3. Subscribers Email
With just one click, you can earn money in Internet
marketing. Emails are often one of the largest sources of corporate
earnings. It's said that you should use email, much like saying that you must
exercise. They all agree that exercising is useful and should do it, but
most people do not show any moves to do it themselves. There are even
those who create their own e-mail lists because they have somewhat understood
the importance of it, but they never do anything useful.
A suggestion:
It's better to place the email import form on different
website pages and in accessible and visible places on your pages so that users
can find your membership form without having to search for form, and simply
Sign up. Do not forget that users who visit your website but do not buy
are your potential customers who can turn them into your actual customers by
employing the right tricks.
4. Follow social media
As time goes by, the role of social media becomes greater,
but sometimes it can act as a very inefficient factor. It's best to use
your own social media as a "soft" email list. The access to
social media is lower compared to your email list, which is because social
pollution is reduced in larger social systems such as Facebook. In addition,
you are not the owner of the platform that was built, which means that you can
log out any time because it has left your control.
5. How many products do you offer?
Earning a single product is somewhat dangerous. What
happens if the product breaks out or breaks out? Whether you have an
online store or a monetized content site through affiliate links, you must
provide several different products. When you advertise multiple products
through your website, you are more attractive to a buyer.
6. Hours needed
Keep in mind that most buyers are not looking for a job, but
they want to increase their cash inflow ideally. Working 40-50 hours a
week in a truly specific business will not be a problem, but this will limit
the number of buyers and reduce the attractiveness of your business.
The truth is that many of the digital businesses we create
do not really require that much of their owners, and there are many ways that
the seller can use them to minimize the weekly hours devoted to the business to
use himself. Our recommendation is that anyone who starts a business for
the first time will think about how to minimize its real involvement.
The three effective ways to reduce the time spent are:
Team development:
Creating content, offering customer service, general
operations, and hiring a targeted
email marketing agency to carry out most heavy loads are the most important
things that make things easier for you. It is true that such tasks add to
your expenses and reduce your net profit, but at the same time make your
business more attractive.
Create Standard Operating Procedures (sops):
Sops should know all the specific business processes and
should be good enough to be able to work, at least 80 percent, in the absence
of you.
7. Dig deeper
We always ask people if they have made enough deep holes
around their business? A deep hole means it's harder to copy your
business. A drop shipping shop that can be copied in one day, even if they
sell the same products, still loses its attraction. There are some things you
can do for more depth. For example, a woodworking website can specifically
focus on the production of benches, assuming you are hiring professional
experts to write stuff on this subject; in this case, you must give your
products their own put it in a more unique way, rather than being a product
that can only be said about "just like me"!
What is the main reason you want to sell your online
business?
Starting a new business or the desire to focus on other
current projects and the use of capital to influence a competitive (and
profitable) environment eliminates any interest in the current business, and in
such circumstances you want to get involved in online investments, such as real
estate, stocks, bonds, and more, before you start paying back, by saving your
business.
When should you sell your business?
The answer to this question needs more than science. As
a rule, you must ask yourself honestly whether you are excited about the amount
of money you make from successful online business sales. Remember to
always imagine the minimum price. Buy website traffic and you can
use evaluation tools to get an accurate estimate.
Conclusion
Many of our internet marketers are always working on several
projects at one and the same time, unfortunately, some of these projects, as
they should and maybe not be of interest to us, and as a result, run these
projects in the background. And what better to do to those who are interested.
