Are you thinking about selling your ecommerce business? The process may differ from selling traditional bricks-and-mortar business
es, which is why it is important to obtain the right advice from the outset, as you need to do everything possible to maximise the sale price. Unfortunately, many ecommerce business owners don’t spend enough time preparing for the sale of their business, often resulting in a lower sales price than they had anticipated. Leaving money on the table is not a sensible step at this stage, particularly if it is due to lack of foresight.
So, if you are considering selling your ecommerce business, we have collected our top five aspects of your business that deserve some serious consideration before you list it on the market.
Defining the Worth of Your E-Commerce Business
The old adage that ‘something is worth what the market is willing to pay for it’ is certainly true. However, you can increase the likely sale of your business by presenting a comprehensive overview of your market position and potential future growth to interested buyers.
For example, you could present your current sales and profit margins compared against past, present and future growth trends in your market space. You could inform potential buyers of the most profitable channels for customer acquisition and the factors that are driving current sales. It is also important to explain how the growth of your ecommerce business is expected to be sustainable for the next 12 months, two years etc., based on particular trends in the market.
Attractive Qualities to Potential Buyers
A successful ecommerce business is based on a complete understanding of the sales funnel; information which is vital for potential buyers. This means that your sales pitch should include information on the key drivers for future sales, as well as evidence of continued growth in both new and repeat sales across traffic from a variety of platforms.
In addition, branding, copyrights, logos and trademarks are all essential elements that need to be in place for a successful and profitable sale.
Protocols Around Selling Your E-Commerce Business
The best time to sell your ecommerce business is when you have clear evidence of growth that is sustainable. You will need to put together a prospectus that includes all of the above information, facts and figures before putting your ecommerce business on the market. Once the sale has been completed, it is still usual for the owner to spend time training the new buyer to run their newly acquired business.
Knowing Your Potential Buyers
Knowing the persona of your potential buyers can go a long way to sealing the deal. As you can appreciate, a retired couple will be looking for something completely different in your business compared to a young entrepreneur. This means that emphasising different qualities and benefits of your business to potential buyers
, can help them to realise their own goals and aspirations through acquisition.
The likely selling range of your E-Commerce Business regardless of all of the above, will be based on what the earning are for its owners
; if they are sustainable (i.e. what are the future maintainable earnings of the business?). That is, if it is barely making a profit now and not likely to in the future, then it’s not salable.
Thinking of selling your business? At Verified Businesses, we are the leading Business Broker on the Sunshine Coast and we have an enviable reputation within the local business community.
Want to know more about how to sell? Contact our friendly team at Verified Businesses for your own information pack or to book a consultation today. At Verified Businesses, success in business is Verified.