To own and operate your own online business doesn’t mean you have to necessarily build a business from scratch. Many entrepreneurs do because they have the time, skills and energy to, but another option exists. If you’re interested in operating your own online business but want to fast forward through the formative years of generating traffic, profit and customers then consider purchasing an online business for sale.

 Buying vs. Starting a New Online Business

What buying an online business for sale essentially comes down to is mitigating the time, monetary and knowledge investment required to build a business from scratch whilst still gaining the advantages of actually owning an online business.

Buying a business helps entrepreneurs skip past the beginning stages of building a startup like the long hours, restricted cash flow, inventory sourcing, system establishment, traffic and customer generation, etc. and takes them straight to the advantageous aspects of operating a business.

When buying an online business, entrepreneurs have the ability to buy into a company that’s already proven to be profitable and the products are already in demand which means it’s a valuable asset to gain. Entrepreneurs can also buy into existing businesses to gain more market share in an industry they already exist in, making them a more fierce competitor and giving them a greater opportunity to dominate.

If buying an online business for sale sounds like a more attractive option to you than starting a business from scratch, it’s important to consider all the disadvantages and advantages that come with it.

Even though it might sound like an easier and faster route to success than building a completely new brand from scratch, there can still be risks involved. The upfront investment when buying an online business for sale is generally much higher than simply building a business from scratch, you may have to take over processes and systems that are inefficient or outdated, you may take on employees and there could be potential liabilities and legal risks imposed on the business as well. For these reasons, doing your own due diligence is of the utmost importance if you’re interested in purchasing an online business for sale.

Why an Online Business is a Good Investment

When buying an online business for sale, you’re putting yourself in the position to invest in online property in a similar way as if you were to invest in physical property like real estate.

Online businesses are like a digital version of physical property, and just like real estate values can grow and prosper over time, so can online business values. The “space” digital assets — like online businesses — take up online is valuable and buying digital property now can lead to a return on investment later.

Besides owning valuable digital property, there are other reasons why buying an online business for sale can be a good investment: Online businesses can generate passive income, meaning that for a low hourly input they can generate a high monetary output. They can also be run in addition to working a typical 9-5 job, meaning that the owner and operator of the business can earn additional income on top of their normal salary. Buying an online business for sale can be relatively easy (especially if you shop around on some of the marketplaces we list below) and exiting the online business at a later date can be just as routine as well.

Buying an online business for sale can be as hands-on or hands-off as you want the process to be, but either way, purchasing an online business for sale can be a valuable asset to gain that provides you with a return on investment which can help you earn income passively while you work your typical day job, and you don’t have to dedicate your whole life to it as you can put the business back up for sale again whenever you’re ready to move on.

Pros & Cons of Buying an Online Business for Sale

Buying an online business for sale and starting a business from scratch both have their own lists of pros and cons, so it’s important to remember that neither is inherently better than the other. Both have advantages and both have disadvantages, it’s just important to know them upfront before you decide to commit to either one.

THE ADVANTAGES OF BUYING AN ONLINE BUSINESS FOR SALE

• The Legwork is Done For You: Skip past the late nights and hours and hours required to start a business from scratch; someone else has done it all for you.
• The Business is Already Up & Running: No need to create a launch strategy and execute launch campaigns, the business is already past that stage.
• Products Have Been Sourced: No need to search high and low for a reputable dropshipping supplier, manufacturing supplier, private label supplier or wholesale supplier, the online business for sale already has a sourcing system in place.
• Systems Have Been Put Into Place: Speaking of having systems put into place, that’s one of the main advantages of buying an online business for sale. Systems like sourcing from suppliers, shipping and fulfillment, logistics, return policies, etc. have already been established.
• Customer Base Established: No need to work on generating initial traffic to the online business, there’s already a customer base purchasing from the store.
• Can Go Straight to Growing & Expanding the Business: Since all the beginning stages of setting up an online store are taken care of, you can go straight to growing and expanding the business.
• Investment Opportunity: Online businesses can be a valuable digital asset that provides a return on investment.
• Taking Over Employees: Purchasing an online business for sale can also include employees of the business who know how the business’ systems operate and what they need to do to fulfill their job roles.
• Investing & Financing: It’s often easier for entrepreneurs to get financing to buy an online business for sale, or to gain investors in the business, as the business has a proven history of growth and success.
• Rights to Assets: Buying an online business for sale can also give you legal rights to assets like patents and copyrights that the business may own.