The Advantages to Buying an Existing Internet Business
Your visit to our site suggests that you're ready for a change in career and lifestyle. We applaud you for embarking on the very exclusive path to self-employment and financial freedom. Owning your own business really is the American dream. Not many achieve it, but when you do, it allows you to be your own boss, to surround yourself with the people you really want to work with, to create your own financial independence and to make your own dreams a reality.
In addition to their financial advantages, many internet businesses offer tremendous lifestyle flexibility. This is due to the ease with which internet businesses can be relocated. Many of our clients operate their websites from their mountain or waterfront retreats. Others operate their internet businesses from locations where the cost of living is a fraction of what they've been accustomed to paying.
If you're a first time entrepreneur considering a start-up or acquisition of an existing business, you should be aware of the benefits of buying an existing business, as opposed to building a business from scratch.
Starting a new business is a serious financial and personal commitment that requires an understanding of what makes a business successful. All too often, new owners jump blindly into a start-up venture, and are quickly overwhelmed by the tremendous workload of starting a business from scratch. In fact, a government survey shows that 60% of new business start-ups fail within the first three years.
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On the other hand, purchasing an established business greatly reduces the failure rate. Here are just a few of the advantages an existing business has over a start-up:
You can review actual operating results (rather than projected results)
You get immediate cash flow from the ongoing business activities
Your website will already have traffic, links, and page ranking
Your website will already have content that's relevant to your customers' searches
You may have existing affiliate
You will have established suppliers
You will have established customers and referral business
You will have trained employees in place (that can train you!)
The seller will train you how to operate the business
In many cases, the seller will provide the financing you need to buy the business
Sunbelt eBusiness Advisors can help you assess the value of an existing internet businesses. We'll help you determine its value by reviewing the business' earnings history and cashflow, its existing client base, and its domain's traffic statistics. We can help you formulate your offer, obtain financing and seal the deal.
Confidentiality
Unlike the sale of real estate or franchises, the sale of an on-going internet business is typically confidential for both the seller and the prospective buyer. All inquiries are held in strict confidence. Information that's provided must be held in strict confidence.
To ensure confidentiality for all parties, Sunbelt eBusiness Advisors requires a confidentiality agreement to be signed. The information is to be used for the sole purpose of evaluating the benefits and risks of purchasing the seller's business, and held in strict confidence.
Financing
Sunbelt can skillfully negotiate financing and formulate a financial plan that works for you. Due to a bank's reluctance to finance small businesses, over 65% of business purchases are financed by the current owners, demonstrating their confidence in the continued success of their business. Financing a business purchase through an owner instead of a bank often means a lower interest rate, a more flexible payment plan, simple credit checks, and greater owner commitment to your success.
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