07/01/2024
I bought an ecommerce business for the price of a holiday; you can too.
Here's how…
We've all had that great idea for an eCommerce store. But you've probably got a full-time gig, and having the spare time to execute is tough.
Step 1. Identify what type of eCommerce business you want to buy.
I suggest an area you have some interest in but not necessarily your hobby.
For example, I love surfing, but it's a hobby, and it's unlikely a surf store will come up for sale.
Decide where it mainly sells. I picked Australia as I'm based here and it's easier to manage stock. You could be in the US or the UK.
Avoid dropshipping unless you plan on eventually holding stock to increase profit.
Set out how much you want to invest also. It can be as little as a good holiday.
Step 2. Start looking
There are lots of marketplaces popping up for selling websites. Many eCommerce stores got set up in covid but aren't run well. This is your opportunity.
Ask for a summary P&L at first. I found only 1 in 5 responded, so build a pipeline of potential sales. This stage took me about two months. Consistently looking is the key.
Step 3. Identify if you can add value.
What would you do in the first week/month to improve it? If you can't think of anything, move on.
Step 4. Make the offer.
You can put 50% of the asking price down and pay the rest out of profit in the following months. This makes your money go further.
Many owners would overvalue their stores, especially if they paid a lot to build it. You're looking for multiples of net profit minus the owners time. This can make them very affordable.
Step 5. The handover.
You can use a third-party escrow service to hold the payment (I used escrow.com). Do your due diligence to make sure everything adds up if happy, go for it. This is where things start getting real. Commit.
Step 6. Running it.
Set aside set times for working on it. First thing in the morning or evenings and stick to it. Tuesday is my main day plus 30 mins - an hour each morning.
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https://boomecommerce.com/how-i-bought-an-ecommerce-business-for-the-price-of-a-holiday/
