Starting a business isn't always easy. Starting a business from scratch can be daunting for new small business owners.
There are many things to consider, such as developing a product, choosing a business model, acquiring customers, etc. You also need to consider the start-up costs and the significant amount of time it will take to be successful. If you want to start a business but don't want to start from scratch, there is another option: buy an already established business.
Note: This doesn't mean buying a business is less hassle, it just means you don't have to start from scratch. Here's how to buy an existing business that gives prospective business owners the ability to get started right away.
10 Best Marketplaces to Buy an Online Business
Looking for a profitable online business for sale? Check out these 10 platforms where you can browse, rate, and compare online businesses available for purchase.
- Flipper
- Empire Flippers
- Side projector
- Niche Investor
- Motion Invest
- Business Withdrawal
- Latona's
- Acquire
- Buysell Empire
- Bizbysell
1. Flippa
Flippa allows you to browse SaaS companies, ecommerce brands, blogs, and affiliate sites that are for sale and shows you their monthly revenue and where their revenue comes from.
2. Empire Flippers
Empire Flippers is a combination marketplace and brokerage, allowing you to search for businesses for sale in a variety of niches while filtering by monetization style and price.
3. Side projector
Side Projectors specializes in sharing side projects, from SaaS businesses to e-commerce brands to mobile apps. Prices are relatively low because the projects tend to be small.
4. Niche investors
Niche Investor focuses on listing blogs and profitable websites for sale. The listings include background information on the business, monthly revenue, and monetization methods implemented.
5. Motion Invest
You can browse websites across different niches and industries and get hands-on support from the Motion Invest team before, during and after your purchase.
6. Business Withdrawal
Business Exits showcases profitable businesses for sale in a variety of niches. Compare the revenue and annual income of different industries.
7. Latona
While Latona is more of a brokerage than a marketplace, you can still browse properties for sale using a variety of detailed filtering options.
8. Acquire
Acquire.com helps connect buyers and sellers in the SaaS and startup space. Through this platform, you can track startup metrics and evaluate their future potential to help you make decisions.
9. Buysell Empire
On BuySellEmpire, you can browse hundreds of listings in a variety of categories, from ecommerce stores and SaaS membership businesses to affiliate sites and Amazon FBA businesses.
10. Bizbysell
BizBuySell is the Internet's largest business sales marketplace. You can search specifically for online businesses and franchises. Search by city, county, or sale and check out hundreds of thousands of established businesses ready for sale.
Is buying an online business a good idea?
If you want to leave the idea side to someone else, buying a currently thriving business can have many benefits.
- A stronger foundation: The initial (time-consuming and often thankless) steps of getting your business up and running have already been completed
- Funding made easy: It's easier to raise capital if you have a proven track record
- Existing Customer Base: If a business has been generating revenue for a while, it's safe to assume that it has an existing customer base and proven product-market fit.
- Existing brand awareness: Less effort is required to increase brand awareness and build a reputation
- Ready-to-go team: If you have existing employees, we have a pre-prepared team waiting to help.
- Resolved issues: The original owner has identified and (hopefully!) resolved many of the problems and friction points in the business, so you
- Steady income: If your business is going well, you may already be receiving a steady income.
What are the disadvantages of buying an online business?
- Large upfront payment: Buying an existing, successful business often requires a large up-front investment. Prices vary, but you can assume that buying an existing, successful business requires a significant amount of cash.
- Renegotiated contracts: Depending on the type of business and the contracts the previous owners had in place, you may need to renegotiate outstanding deals with suppliers, vendors, influencers and other key stakeholders.
- Reason for sale unknown: Why are the current owners selling? Will this impact the business and its future?
- Difficult to mark: With the reputation and preconceived notions already attached to it, it may take some work to make the business your own.
What should you look out for when buying an online business?
There are 33.1 million small businesses in the United States alone, and an estimated 26.5 million ecommerce businesses worldwide, meaning there are plenty of established businesses to choose from.
So what should you look out for when choosing a business to acquire?
Consistent Financials
Don't buy a dud. Ideally, the business you're buying from should be able to make a steady profit every month, or at least have the potential to reach a steady level. Sellers have no problem sharing the company's financials with you. In fact, it's a requirement before you sign any contracts.
Existing Reputation
It can be hard to overturn negative opinions about your business, which is why choosing a brand that already has a positive reputation is a much better option. Check out reviews on sites like Trustpilot and scroll through the brand's social channels to hear what people are saying about them online.
Current Business
Take a look at your company's current operations. If they are old or outdated, you may run into problems. Changing things around may take time and resources. Smaller companies may not have as established operations, but they will likely have processes in place for key parts of their workflow, like shipping and an integrated tech stack.
Consistent Traffic
Online businesses depend on website traffic to survive. The more traffic your site has, the more potential customers you'll have and the more revenue you'll generate. When choosing a business to buy, look for steady growth and consistent traffic from multiple sources. The last thing you want to do is rely on traffic from a single source that can dry up as soon as an algorithm changes.
Future Possibilities
Your business may be thriving now, but what about in a few months or years? It's important to evaluate the future potential of your business. For example, find out if your bestsellers are seasonal items, or if the products you're selling are current fads that will quickly go out of style.
Future Customer Base
While your company's current customer base may be very healthy, consider where there is room for expansion. Who exactly are you targeting, is that market close to being maxed out, and is there room to expand into another market or region?
General Feedback
Knowing what customers think about a business can make or break your decision to buy it. Consider what positive feedback the business has received and what the common complaints are. Essentially, what do existing customers like and dislike? And for the things they dislike, think about what needs to be done to improve it.
What type of online business should you buy?
The term “online business” encompasses all kinds of business models, but some of the most common types of businesses you can buy include:
- SaaS Brands
- E-commerce companies
- dropshipping brands
- Affiliate Sites
- Mobile App
- Productized Services
- Blogs/Content Sites
- Subscription Business
- Digital Products Business
How can you get good deals for your online business?
You don't want to waste your money, right? Here's how to make the most of it.
Looking far into the distance
By casting a wide net, you can find companies you hadn't thought of. Use a combination of the above methods to find companies you might be interested in buying, comparing prices, revenue, and other important factors.
Quickly evaluate opportunities
Without wasting any time, measure each potential business opportunity using a set of criteria, for example, rating each of the following elements out of 10:
- Cash flow
- Growth potential
- Reason for sale
- Time required for investment
- Existing reputation and customer base
- longevity
Businesses with strong ratings in all these areas will be more expensive, but you'll find they offer strong earnings and growth potential.
Do your due diligence
Before you enter into negotiations, research the laws surrounding your business, such as taxes and operations, to find out where any issues lie. The more information you have, the better informed your offer will be.
Negotiate
With most companies, the listed price isn't necessarily fixed – you can negotiate with the seller to get better terms, depending on the opportunity assessment you gave the company and the information you found during your research phase.
Tips for buying an online business safely
Owners primarily sell their online businesses through marketplaces, but that doesn't mean they're risk-free. They can get scammed or make a bad choice. To stay safe, consider the following:
- Do thorough research beforehand.
- Verify their business model by talking to past customers and employees.
- Check your financials and other important documents closely.
- Please consult with an attorney regarding procedures and paperwork.
- Ignore the ambitious sales pitch and stick to the facts.
- Find out why the business is for sale.
- Speak to your suppliers and review existing contracts and deals.
- be careful!
Buying an existing online business can offer great benefits: instead of having to start from scratch, you can capitalize on the success of an existing brand that has already proven customer, product and market fit.
However, to ensure you get the full benefit from your investment, it’s important to conduct your due diligence and create a business plan.
Buying an Online Business FAQs
How can I buy an online business safely?
You can safely buy online businesses through the following marketplaces:
- Flipper
- Empire Flippers
- Side projector
- Niche Investor
- Motion Invest
- Business Withdrawal
- Latona's
- Acquire
- Buysell Empire
- Bizbysell
Can I purchase it from the online store?
Yes, it is possible to buy an online store, and platforms like Flippa and Acquire sell ready-to-go ecommerce businesses.
What is the fastest online business that can make you money?
The fastest way to make money online is through dropshipping or selling digital products. These business models have low startup costs and can get you up and running quickly.
Is it risky to buy an online business?
Buying an online business involves risks. To buy a legitimate business online, do thorough research beforehand, review the financials and other important documents. Consult with an attorney about the procedures and paperwork to find the best business for you.
