Do you want to sell your online business? Or maybe you’re thinking of selling it in the future? Well, it may not be on your plans now but this may change. Before you consider selling your business, there are several things you must take into consideration.
You need to prepare the business to attract eligible buyers and you need to do so early. For example, get effective systems for your day to day operations, accurate and consistent data as well as easy to manage healthy finances.
Here’s how to prepare and sell your online business profitably.
Collect accurate and precise data over time before selling your business. One key data metric that buyers will always look at is how much traffic the website is getting and from where the traffic is coming from.
Therefore you need to have a way to track the traffic if you’re going to give this information. There are several credible tools like Google Analytics through which you can track the traffic coming to your site.
Remember, buyers have a way to prove your data and they need to confirm that the reported traffic is real because it’s the lifeblood of any online business. Therefore, ensure that you collect and present real data.
Analytics also helps them verify that all the hits are from genuine leads. Furthermore, the data will help the buyer see the kind of engagement and conversations you get, to assess the opportunities for growth
Getting your books straight forms an integral part of the process. Buyers need this information and they need it presented in a simple way that’s easy to understand.
Therefore, you need to separate your personal and business accounts. If you’re still running your business on a personal account, you have to stop. Not only is it an unprofessional way to manage business finances, but it’s also a nightmare for any potential buyer.
Therefore, they will always walk away from it. Buyers need this information as they need proof of revenue to assess the business value. Prepare and avail the true data on your net monthly income, gross margin and the cost of goods sold.
You need to have working systems including standard operating procedures. SOPs provide a detailed manual of how business is conducted in the various departments. You write down how you handle the different tasks in the business.
For example, keyword search, SEO optimization, writing product listing, content creation and so forth. Begin with the simple tasks and then create SOPs for the more complex ones.
Many buyers are looking to buy a “well-oiled machine”. If the business depends on the owner to do everything and this owner does things in no specific way, no one is going to buy it. This is because buyers want guaranteed continuity.
Final Thoughts On How To Sell Your Online Business
If you want to sell your online business, historical data will help you value your business and set the price. Therefore, begin to collect all the relevant data as soon as possible.
The sooner you organize your business, the better it will be, as it will not only give the buyer what they’re looking for, but it will also help you fix any problems and get it ready.