Entrepreneurship isn’t always easy. There’s much to consider, from developing a product and choosing a business model to finding your audience—not to mention startup costs and the considerable time commitment.
If you want a business, but don’t want to start from scratch, there’s another option: buying an already established business. Here’s how prospective business owners can buy an existing company.
10 best marketplaces for buying an online business
- Flippa
- Empire Flippers
- SideProjectors
- Niche Investor
- Motion Invest
- Business Exits
- Latona’s
- Acquire.com
- BuySellEmpire
- BizBuySell
Searching for a profitable online business for sale? Look no further than these 10 platforms that let you browse, evaluate, and compare companies.
1. Flippa
Flippa lets you browse software-as-a-service (SaaS) companies, ecommerce brands, blogs, and affiliate sites that are up for sale, showing you their monthly revenue and how they make their money.
2. Empire Flippers
Empire Flippers is a cross between a marketplace and a brokerage. You can explore businesses for sale in different niches, filtering by monetization style and price.
3. SideProjectors
SideProjectors specializes in sharing side hustles, from SaaS businesses to ecommerce brands and mobile apps. Prices are on the cheaper side because the projects tend to be smaller.
4. Niche Investor
Niche Investor lists blogs and profitable websites for sale. Listings provide background information about the business, monthly revenue, and monetization methods.
5. Motion Invest
Motion Invest lets you browse content websites in a variety of niches and industries. Plus, the service provides hands-on support before, during, and after purchase.
6. Business Exits
Business Exits showcases highly profitable—$2 million to $60 million—businesses for sale in various industries, helping you compare their revenues and yearly incomes.
7. Latona’s
Latona’s is more of a brokerage than a marketplace, but it still lets you browse listings for sale with a range of detailed filtering options.
8. Acquire.com
Acquire.com connects buyers and sellers in the SaaS and startup spaces. Through the platform, you can track startup metrics and evaluate future potential to help you decide.
9. BuySellEmpire
Browse hundreds of listings on BuySellEmpire in various categories, from ecommerce stores and SaaS membership businesses to affiliate sites and Amazon-based businesses.
10. BizBuySell
BizBuySell is the internet’s largest business-for-sale marketplace. Browse specifically for online businesses or franchises. Search by city, county, or state and review your pick of hundreds of thousands of established businesses.
Pros of buying an online business
When you buy an existing online business, you can reap huge rewards—if you know what you’re doing. You don’t have to start from scratch and can piggyback off the success of a pre-established brand that’s already proven its audience, product, and market fit. Here are some of the key benefits:
Easier funding than starting fresh
Getting money to start a business is notoriously difficult. But securing financing to grow a company with a proven track record is a different story.
Banks and investors are more likely to fund businesses that have been around for at least a year. And for good reason: according to the Bureau of Labor Statistics, about 20% of new businesses fail within their first year.
For many entrepreneurs, this means bootstrapping until they can prove their startup is worth investing in. Buying an existing business allows you to skip the (often time-consuming and thankless) bootstrapping phase and go straight into growth mode.
Established customer base
If it’s been generating revenue for a while, it’s a safe bet that the business has an existing customer base and a proven product-market fit. Instead of starting from scratch, you can focus on expanding to other markets and deepening your connection to your VIP customers.
Brand awareness
When you buy an existing business, part of what you’re paying for is built-in brand awareness, which saves you the time it takes to build a reputation.
Ready-to-go team
If your business comes with employees, you have a premade team ready and waiting and don’t need to worry as much about hiring employees. Not only can the existing team help you run your new business, but they’re also a valuable source of information about the business.
Understanding of strengths and weaknesses
The original owners will have discovered many of the businesses’ problems and friction points and can share those with you so you don’t make the same mistakes twice. Many entrepreneurs start businesses without fully understanding what they’re getting into. Buying an existing business can give you a clear picture of its strengths and weaknesses.
Cons of buying an online business
Large upfront cost
An existing business can require a large amount of upfront money to buy. Prices vary, but you can safely assume that a company that’s doing well will cost a chunk of cash.
Renegotiated contracts
Depending on the business type and details of previously signed contracts, you may need to renegotiate outstanding deals with suppliers, vendors, influencers, and other stakeholders.
Unknown reason for sale
Why is the current owner selling? Will this impact what you can do with the business or its future?
Difficulty making a mark
It might take some work to turn the business into your own since it already has a reputation.
What should you look for when buying an online business?
There are 33.1 million small businesses in the US alone and an estimated 26.5 million ecommerce businesses worldwide. That’s a lot of established companies and a lot of choices.
So, what should you look for when selecting a business to buy?
Consistent financials
You don’t want to buy a dud. Ideally, any business you’re considering should be able to show consistent month-on-month revenue or at least the potential to reach a consistent level.
The seller should have no problem sharing the business’s financials with you—in fact, this is a must-do before you even consider signing a contract.
Existing reputation
It can be challenging to turn around a negative reputation, so your best option is to go for a brand with a good name.
Browse reviews on sites like Trustpilot, scroll through the brand’s social channels, and listen to what people say about it online.
Current operations
Take a look at the business’s operations. Changing things takes time and resources, so be wary if systems and processes look outdated.
Smaller businesses will have less established operations, but they should still have processes for key parts of the workflow, like shipping and integrated tech stacks.
Consistent traffic
Online businesses rely on website traffic to stay afloat. The more traffic a site has, the more potential customers it has and the more money it can make.
When choosing a business to buy, look for steady growth and consistent traffic from multiple sources. Don’t rely on single-source traffic, since it can dry up when algorithms inevitably change.
Future potential
A business might thrive today, but what about a few months or years? It’s essential to assess the future potential of the company. For example, consider whether its bestseller is a seasonal item, or its products represent a craze that will go out of fashion.
Future customer base
While a business’s current customer base might be healthy, evaluate if there’s room for expansion. Who is it targeting, and is that market nearly maxed out?
Consider if there’s room to move into different markets and locations, too.
General feedback
Knowing what customers think about a business can make or break your buying decision. Consider the kinds of positive feedback it gets and common complaints.
What do existing customers like and dislike about it? Regarding dislikes, think about how you would turn it around.
What types of online businesses should you buy?
The term “online business” covers all manner of business models, but the most common types of businesses you can buy include:
How do you get a great deal on an online business?
You don’t want your money to go to waste, right? Here’s how you can get the most for your dollars:
Search broadly
Casting a wide net can help you find businesses you have not considered. Use a mixture of the above mentioned methods to source potential companies to purchase and compare prices, revenue, and other key factors.
Rate opportunities quickly
Use a set of criteria to measure the opportunity of each potential business without wasting too much time. For example, you might rate each of the following elements out of 10:
- Cash flow
- Growth potential
- Reason for selling
- Time investment required
- Existing reputation and customer base
- Longevity
A business that rates well in all these areas will come with a higher price tag, but you’ll know it comes with robust revenue and growth potential.
Do your due diligence
Research legalities, including taxes and operations, and find problem areas before negotiating. The more information you have, the more informed you can be with your offer.
Negotiate
The listed price isn’t necessarily set in stone. Depending on the opportunity rating you’ve given a business and the information gathered in the research stage, you might be able to negotiate a better deal.
Tips for buying an online business safely
Owners sell online businesses mainly through marketplaces, but that doesn’t mean there’s zero risk. There’s the potential for getting scammed and making the wrong choice. To make sure you’re doing things safely, consider the following:
Ignore aspirational pitches
One advantage of buying an existing business is that you can see its performance history. If the company appears to be going downhill but the owner assures you things will improve, believe the numbers.
Verify the business model with past customers and employees
Financials aren’t everything. Some businesses look great on paper but have serious internal issues. When researching a business you want to buy, don’t just rely on the information provided by the current owners—talk to current and former employees, customers, or other people familiar with the business.
Consult a lawyer
There’s lots of paperwork involved in buying a business, and a lawyer can translate legal jargon to help you understand the terms of the sale. A trusted legal professional can also assist with contracts or agreements you may take on as part of the sale.
Determine why the business is for sale
There are plenty of legitimate reasons to sell a business. However, if the owner is cagey about their reasons for selling, it could indicate a significant problem.
Confirm contracts and deals with existing suppliers
Most businesses rely on other companies to achieve their goals. Before buying an existing business, check with major suppliers, buyers, and other partners to ensure your contracts remain valid after the business changes hands.
Buy online business FAQ
Can I buy an online store?
Yes, you can buy an online store. Platforms like Flippa and Acquire sell ready-to-use ecommerce businesses.
What is the fastest online business to make money?
The fastest online business to make money involves dropshipping or selling digital products. These business models require low upfront costs and can be set up quickly to start making money.
Is buying an online business risky?
Buying an online business can be risky, so it’s important to do your research and scrutinize financials and other key documents. Talk to a lawyer to help you with the process and paperwork.