Industry Insights

Profitable Business: 5 Proven Strategies for Pursuing Your Passion

by

Do you have a passion that you would love to turn into a profitable business? Many people dream of taking their hobbies, interests, and skills and turning them into a successful enterprise. But it can be daunting to know where to start. Fortunately, there are proven strategies that can help you turn your passion into a profitable business. In this article, we will explore five of these strategies, including identifying your niche, building a strong brand, creating a solid business plan, leveraging social media, and nurturing customer relationships. With these strategies in your toolkit, you can turn your passion into a thriving profitable business. 

 profitable business

#1 Identifying your Passion and Market Demand

The first step to turning your passion into a profitable business is to identify your niche. Your niche is the area in which you have the most expertise and passion. This could be anything from cooking to travel to fashion. Once you have identified your niche, it’s important to research the market demand. Are there other businesses in your niche? If so, what are they doing well, and where are their weaknesses? Understanding the market demand will help you identify opportunities for growth and differentiation.

Another important aspect of identifying your niche is to understand your target audience. Who are your potential customers, and what are their needs and desires? Conducting market research can help you answer these questions and develop a deeper understanding of your target audience. This can help you tailor your products or services to meet their specific needs and increase your chances of success.

#2 Developing a Business Plan

Once you have identified your niche and researched the market demand, it’s time to develop a business plan. A business plan is a roadmap that outlines your goals, strategies, and financial projections for your profitable business. It should include an executive summary, market analysis, marketing and sales strategies, financial projections, and a management plan.

One of the most important aspects of a business plan is financial projections. This includes estimating your startup costs, revenue projections, and expenses. It’s important to be realistic in your projections and consider all possible expenses, including marketing, supplies, and overhead costs.

Another important aspect of a business plan is marketing and sales strategies. This includes identifying your target audience and developing a marketing plan that reaches them effectively. This can include social media, email marketing, and advertising. It’s important to track the effectiveness of your marketing efforts and adjust your strategies as needed.

There are several resources available to help you develop a business plan. Here are some popular ones:

  • Small Business Administration (SBA): The SBA provides a wide range of resources for entrepreneurs, including business plan templates, guides, and workshops. Visit their website at sba.gov for access to these resources.

 

  • SCORE: SCORE is a nonprofit organization that offers free mentoring and business planning assistance. They have experienced mentors who can guide you through the process of developing a business plan. Visit score.org to find a mentor or access their business plan templates.

 

  • Business Plan Software: There are various software tools available that can assist you in creating a business plan. These tools often provide templates, financial forecasting, and other features to streamline the process. Examples include LivePlan, Bizplan, and Enloop.

 

  • Local Small Business Development Centers (SBDCs): SBDCs are funded by the SBA and offer free or low-cost business consulting services. They can provide guidance on business plan development and offer workshops or training programs. Visit the SBA’s website to find an SBDC near you.

promoting your service

#3 Creating and Promoting your Product or Service

Once you have identified your niche, researched the market demand, and developed a business plan, it’s time to create and promote your products or services. This includes developing a pricing strategy, creating high-quality products or services, and promoting them effectively.

When developing a pricing strategy, it’s important to consider the value you provide to your customers. Your prices should be competitive with other businesses in your niche, but also reflect the quality of your products or services. It’s important to track your expenses and adjust your prices as needed.

Creating high-quality products or services is essential for any business. It’s important to consider the needs and desires of your target audience and develop products or services that meet those needs. This can include conducting surveys or focus groups to gather feedback from your potential customers.

Promoting your products or services is another important aspect of turning your passion into a profitable business. This includes developing a marketing plan that reaches your target audience effectively. This can include social media, email marketing, and advertising. It’s important to track the effectiveness of your marketing efforts and adjust your strategies as needed.

Once you have created your product or service, it’s important to establish a pricing strategy. A pricing strategy is the method you use to determine the price of your product or service. There are several pricing strategies to consider, including cost-plus pricing, value-based pricing, and dynamic pricing.

Cost-plus pricing involves adding a markup to your costs to determine the price of your product or service. Value-based pricing involves setting the price based on the value your product or service provides to your customers. Dynamic pricing involves adjusting the price based on market demand.

When establishing a pricing strategy, it’s important to consider the value you provide to your customers. Your prices should be competitive with other businesses in your niche, but also reflect the quality of your products or services. It’s important to track your expenses and adjust your prices as needed.

#4 Building and Nurturing Customer Relationships

Building and nurturing customer relationships is essential for any profitable business. It allows you to build trust with your customers and increase your chances of repeat business. This includes providing excellent customer service, engaging with your customers on social media, and offering exclusive discounts and promotions.

When providing customer service, it’s important to be responsive and helpful. This includes responding promptly to customer inquiries and resolving any issues quickly and effectively. Engaging with your customers on social media is another effective way to build relationships. This can include responding to comments and messages and sharing content related to your niche.

Offering exclusive discounts and promotions is another effective way to build and nurture customer relationships. This can include offering discounts to new customers or offering loyalty programs to repeat customers. It’s important to track the effectiveness of your promotions and adjust them as needed.

scaling your business

#5 Scaling Your Profitable Business

Once you have established your profitable business and achieved some success, it’s time to consider scaling your business. Scaling your business involves expanding your operations and increasing your revenue. This can include hiring employees, expanding your product line, and opening new locations.

When scaling your business, identify opportunities to leverage technology and automation to streamline processes, improve productivity, and enhance customer experience. This could involve implementing customer relationship management (CRM) software, adopting project management tools, utilizing e-commerce platforms, or implementing marketing automation systems.

Also, it’s crucial to maintain a focus on customer satisfaction and retention. Happy and loyal customers not only provide repeat business, but also become advocates for your brand, helping you attract new customers through referrals. 

On the flip side, it’s important to consider the potential risks and challenges. This can include increased expenses, staffing challenges, and potential market saturation. It’s important to have a solid business plan and financial projections in place to ensure you are prepared for any challenges. 

Conclusion

Turning your passion into a profitable business is a dream for many people. By identifying your niche, developing a business plan, creating and promoting your digital products or services, establishing a pricing strategy, building and nurturing customer relationships, and scaling your business, you can turn your passion into a thriving enterprise. It’s important to be patient and persistent, and to always be open to learning and growth.

With these strategies in your toolkit, you can achieve the financial and personal freedom you’ve been dreaming of. If you want immediate cash flow from your profitable business, browse online businesses for sale or startups for sale to get started.

1st Photo by Anna Shvets. 2nd Photo by Tim Douglas. 3rd Photo by Polina Zimmerman.

Remote Work: 10 Essential Tips to Staying Productive

by

Staying productive in remote work can be challenging without the traditional office environment. Whether you run a digital business or work from home as a freelancer, here are ten essential tips to help you stay productive while working remotely.

remote work

#1 Designate a Workspace

Set up a dedicated workspace that is separate from your living area. This helps create a boundary between remote work and personal life, enhancing focus and productivity. Natural light is ideal, so position your workspace near a window if possible. Also, invest in a comfortable chair that provides proper support for your posture. Adjust the height of your desk and chair to ensure a comfortable and ergonomic work position.

#2 Establish a Remote Work Routine

Create a daily routine and stick to it. Having a consistent schedule helps maintain discipline and sets expectations for your workday. Arrange your routine in a way that prioritizes the most important or challenging tasks during your peak energy or focus times. This will ensure that you tackle crucial tasks when you’re at your best. Also, regularly evaluate your routine to see if it’s working effectively for you. Be open to making adjustments based on your evolving needs, priorities, and feedback from the results you’re achieving.

#3 Set Clear Goals and Deadlines

Define clear goals and break them down into smaller tasks. Set realistic deadlines for each task to maintain a sense of progress and accomplishment. Use the SMART goal framework, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound. This approach ensures that your goals are well-defined and focused.

#4 Minimize Distractions

Identify and minimize distractions in your workspace. Turn off notifications, close unnecessary tabs on your computer, and communicate with family or roommates about your need for uninterrupted remote work time. Use productivity apps or browser extensions that block or limit access to distracting websites or social media during work hours.

minimize distractions

#5 Prioritize and Focus

Use productivity techniques like the Eisenhower Matrix or Pomodoro Technique to prioritize tasks and maintain focus. Concentrate on one task at a time to improve efficiency and prevent multitasking. Apply the MoSCoW method, which stands for Must, Should, Could, and Won’t. Categorize tasks based on their priority and significance. Focus on the must-do tasks first, followed by should-do and could-do tasks. This method ensures you allocate your time and attention to the most critical activities.

#6 Communicate Effectively

Stay connected with your colleagues and managers through regular communication channels. Use tools like email, instant messaging, or video conferencing to ensure clear and effective communication. Clearly convey your ideas, thoughts, and information in a concise manner. Use simple language, organize your message logically, and avoid unnecessary jargon or complex terminology.

#7 Take Regular Breaks

Schedule short breaks throughout your workday to recharge and prevent burnout. Use these breaks to stretch, move around, or engage in activities that help you relax and refresh your mind. Breaks provide an opportunity to recharge your mind and alleviate mental fatigue. Stepping away from remote work tasks allows your brain to rest and replenish its cognitive resources, leading to improved focus and concentration when you return to work.

#8 Maintain Work-Life Balance

Set boundaries between remote work and personal life. Establish specific work hours and avoid overworking. Engage in activities that promote physical, mental, and emotional well-being. Set aside time for exercise, relaxation, hobbies, and spending quality time with loved ones. Taking care of yourself will enhance your energy levels, resilience, and overall satisfaction in both work and personal life.

#9 Stay Organized

Use digital tools such as project management apps, to-do lists, or calendars to organize tasks, deadlines, and important information. Keep your workspace tidy and maintain a clutter-free digital environment. If you’re working on projects, it’s important to have a system in place to organize your tasks and deadlines. Consider using project management tools like Asana, Trello, or other similar tools to create a centralized location for all project-related information, tasks, and communication.

#10 Practice Self-Care

Take care of your physical and mental well-being. Get enough sleep, eat healthy meals, exercise regularly, and practice stress management techniques like meditation or mindfulness. Taking care of yourself positively impacts your productivity.

Remember that finding what works best for you may require experimentation and adjustment. Implement these tips according to your unique work style and preferences to optimize your productivity while working remotely.

productivity tools

There are various tools and software available that can enhance remote work productivity too. Here are some popular ones:

Communication and Collaboration

  • Slack: A popular messaging and collaboration platform for team communication.
  • Microsoft Teams: A comprehensive collaboration tool for chat, video calls, file sharing, and project management.
  • Zoom: A video conferencing tool for virtual meetings and webinars.
  • Google Workspace: A suite of productivity tools including Gmail, Google Docs, Google Sheets, and Google Drive for seamless collaboration.

Project Management with Remote Work

  • Asana: A project management tool for organizing and tracking tasks, deadlines, and project progress.
  • Trello: A visual collaboration tool using boards, lists, and cards to manage projects and tasks.
  • Monday.com: A flexible and customizable project management platform for team coordination and task tracking.

Time Management and Productivity Tracking

  • Toggl: A time tracking tool to monitor and analyze how time is spent on tasks and projects.
  • RescueTime: A productivity app that tracks and analyzes computer and app usage to help you identify time-wasting habits.
  • Focus@Will: A music service that provides personalized playlists designed to enhance focus and concentration.

File Storage and Sharing

  • Google Drive: A cloud storage and file sharing platform with seamless integration into Google Workspace.
  • Dropbox: A popular cloud storage and file synchronization service with collaboration features.
  • OneDrive: Microsoft’s cloud storage service that integrates with Microsoft 365.

Note-Taking and Documentation

  • Evernote: A note-taking app that allows you to capture, organize, and search for information across devices.
  • Notion: A versatile workspace tool for note-taking, project management, and collaboration.
  • Microsoft OneNote: A digital notebook for capturing and organizing ideas, notes, and information.

Virtual Collaboration and Whiteboarding

  • Miro: An online whiteboard platform for visual collaboration and brainstorming sessions.
  • Microsoft Whiteboard: A digital canvas for real-time collaboration and ideation.
  • Conceptboard: A virtual collaboration tool with features for visual collaboration, feedback, and project management.

These are just a few examples, and there are many other tools and software available based on specific needs and preferences. When selecting tools, consider the requirements of your remote work and team collaboration to find the ones that best suit your workflow and enhance productivity. With these tools at hand, running your own digital business can get a whole lot easier.

1st photo by Nataliya Vaitkevich. 2nd photo by energepic.com. 3rd photo by Pexels.

Digital Nomad: 4 Steps to Mastering the Fine Art of Work-Life Balance

by

Introduction

Digital nomads are individuals who leverage technology to work remotely while embracing a location-independent lifestyle. They have the flexibility to choose their work environment, often traveling and living in different places while maintaining their professional responsibilities. The concept of digital nomadism has gained significant popularity in recent years due to the appeal of a flexible work-life balance.

Digital nomads are drawn to the idea of having control over their time, the ability to work from anywhere, and the opportunity to integrate work with their personal lives. The appeal of a flexible work-life balance for digital nomads can be attributed to several factors such as freedom and autonomy, location independence, increased productivity, personal growth, integration of work and leisure among others.

digital nomad

Step 1. Understanding the Digital Nomad Lifestyle

The digital nomad lifestyle refers to a way of living where individuals leverage remote work opportunities to work an travel simultaneously, often on a long-term basis. They use technology to perform their work tasks remotely, allowing them the freedom to choose their location and work from anywhere with an internet connection.

Key characteristics of the digital nomad lifestyle include:

  1. Remote Work: Digital nomads typically engage in work that can be done remotely, such as freelance work, entrepreneurship, or remote employment. They use online communication tools, project management platforms, and other technology to collaborate with clients or colleagues.
  2. Travel: Digital nomads embrace a mobile lifestyle and frequently change their physical location. They often explore new cities, countries, and cultures, immersing themselves in different environments while maintaining their work commitments.
  3. Flexibility: One of the main advantages of the digital nomad lifestyle is the flexibility it provides. They have the freedom to set their own schedules, choose their work hours, and design their routines according to their preferences.
  4. Independence: Digital nomads often work as independent professionals, allowing them to have control over their projects, clients, and income streams. They are self-reliant and responsible for managing their work-life balance and professional development.
  5. Community and Networking: Digital nomads frequently seek connections with like-minded individuals and often join digital nomad communities or attend co-working spaces where they can interact with fellow nomads, share experiences, and collaborate on projects.

Digital nomads enjoy a considerable degree of freedom and flexibility in managing their work, which contributes to their long-term success and satisfaction.

digital nomad lifestyle

Step 2. Challenges of Work-Life Balance

The digital nomad lifestyle offers freedom and flexibility, but it also poses unique challenges to work-life balance. Here are some of the challenges that they face when it comes to work-life balance.

  1. Blurred boundaries: The line between work and personal life can become blurred for digital nomads. With no fixed office hours or separation between work and living spaces, it can be difficult to establish clear boundaries between work and personal time.
  2. Loneliness and social isolation. Digital nomads often work remotely and move frequently, which can lead to feelings of loneliness and social isolation. Without a traditional office environment and co-workers, it can be challenging to build social connections and have a support system.
  3. Time management. Managing time effectively can be a significant challenge for digital nomads. Juggling work commitments, travel arrangements, and personal activities requires strong organizational skills and discipline.
  4. Lack of routine. The nomadic nature of the digital nomad lifestyle often means a lack of routine. While flexibility is a perk, the absence of a consistent schedule can make it difficult to establish a work-life balance.
  5. Client and work demands. Digital nomads may face challenges in managing client expectations and work demands. Depending on the nature of their work, clients or employers in different time zones may require immediate responses or availability during non-traditional working hours.
  6. Distractions and interruptions. Working from different locations, such as cafes or co-working spaces, can introduce distractions and interruptions that may affect productivity and work-life balance.

Some of the main challenges in being a digital nomad are lack of boundaries, social isolation, and time management. While these challenges are surmountable, they take a degree of self-discipline and focus to overcome. 

digital nomad lifestyle

Step 3. Strategies for Achieving Work-Life Balance

Mastering work-life balance while living the digital nomad lifestyle can be challenging, but with practical tips and strategies, it is achievable. Here are some effective tips for maintaining work-life balance as a digital nomad.

  1. Set clear boundaries. Establish clear boundaries between work and personal life. Define specific work hours and stick to them, ensuring you have dedicated time for personal activities, relaxation, and self-care.
  2. Create a daily schedule. Plan your days in advance by creating a structured schedule. Allocate specific time slots for work, leisure, exercise, and personal pursuits.
  3. Prioritize Self-Care. Make self-care a priority to support your overall well-being. Incorporate activities such as exercise, meditation, hobbies, or relaxation techniques into your routine.
  4. Establish a dedicated workspace. Create a designated workspace that promotes focus and productivity. Having a separate area for work helps mentally separate work and personal life.
  5. Embrace technology and automation. Utilize technology and automation tools to streamline your work processes. Take advantage of productivity apps, project management software, and communication tools to optimize efficiency and save time.
  6. Practice time management. Effective time management is crucial for balancing work and personal life. Prioritize tasks based on urgency and importance, delegate when possible, and avoid multitasking, as it can lead to decreased productivity.

Remember that work-life balance is a continuous effort, and it may require adjustments along the way. Flexibility, self-awareness, and effective time management are key to mastering work-life balance while living as a digital nomad.

Step 4. Leveraging Hatchit for Work-Life Balance

To get started on your digital nomad journey, check out online businesses for sale on Hatchit’s digital directory. These businesses are relocatable businesses and can be run from anywhere. Prices range from a few thousand dollars and up, but most will require a large down payment to purchase. You can inquire about seller financing, SBA loans, and other forms of financing with the seller. Owning a cash-producing digital business will help you quickly realize your digital nomad dreams.

Conclusion

In short, if you decide to embark on the digital nomad lifestyle, remember to keep a few important points in mind in order to succeed: map things out before you jump in and aim to create a work-life balance that is rooted in your mental and physical wellbeing.  We encourage readers to explore Hatchit as a platform for business opportunities that align with your work-life balance goals. Big or small, new or established, we probably have a business just right for you.

1st Photo by RDNE Stock project. 2nd photo by Sarah Chai. 3rd Photo by Dziana Hasanbekava.

Flippa: The Investment Bank for the 99%

by

Just about anyone who has looked at buying an online business will be familiar with Flippa. With over 3 million users and a network that exceeds 600,000 buyers, Flippa powers more than 12 thousand deals annually. Founded in 2009 in Melbourne, Australia, the marketplace has become a juggernaut in the digital M&A space.

Flippa is unique in that it offers something for everyone – from established, profitable businesses, to startups, domains, and other assets. It has also innovated with some sophisticated technologies, including an AI-driven engine for deal recommendations, a comparative market insights tool, and robust integrations that allow for automated listing updates and deal transparency. With price points ranging from $5,000 to $50 million, Flippa caters to a broad user base that includes “entrepreneurs, side hustlers, hackers and new-age small business owners.”

A Wide Array of Deals

valuable tools

Flippa’s primary areas of focus include websites, apps, domains, ecommerce, content, marketplaces, SaaS, services, Adsense, and Amazon. With regard to deal distribution, the “Websites and Online Businesses” and “Domain” categories are the most prevalent asset types on the site, each with over 5,000 listings. Approximately half of the websites/online business listings are revenue-producing with roughly 25% generating more than $10,000 in profit annually, and about 5% producing more than $120,000 in profit. Beyond websites/online businesses and domains, Flippa lists an additional ~175 Amazon stores, ~390 apps, and ~75 other online opportunities. About 2,500 deals are for “Auction”, following a bid/buy it now structure, similar to eBay. The remainder are “Classified.”

Flippa also lists on its site what the company refers to as “off-market” deals. The approach is similar to that taken by Zillow, Redfin and others in real estate, where site visitors can view and get estimated values for properties even when they are not for sale. Flippa includes off-market deal information on 74,800+ online businesses. This information is useful for comparative purposes and also provides a means for buyers to proactively approach unlisted businesses and domain owners. Flippa offers a service for buyers to engage an expert Broker Agent who will support buyers every step of the way, from initial outreach, to ongoing discussions and purchase negotiations. 

Granular Searchability

While the site layout is simple and intuitive, it is also comprehensive. Flippa deals are granularly categorized, allowing sophisticated buyers the ability to quickly identify criteria matches. If Flippa’s fifteen industry categories aren’t sufficient, buyers can delve deeper into over 100 subcategories. Beyond industry, asset type, status, and financials, buyers can search by authority score, pageviews, and monthly users, among other specific criteria.

Once signed up with Flippa, a buyer can review high-level information, including a business summary, the monetization method, and benchmarking insights. Users can even toggle through eleven currency options when viewing financials. Some listings offer additional detail once a buyer signs an NDA, including direct data connectivity, a deal room for discussions, call scheduling, due-diligence options, legal services, financing, and integrated payment options.  

Many Options for Sellers

Whether seeking to sell for-sale-by-owner or with help from a broker, Flippa is a great resource for business owners to gain visibility and drive buyer traffic to their deal. Sellers have flexibility to choose the type and level of support they need. The four pricing tiers, which reflect deal size, advisory and marketing support, and listing duration, include two components: (1) a one-time upfront fee ranging from $49 to $599, and (2) a success fee ranging from 4% to 10%.

The higher priced tiers include such services as a dedicated Flippa agent, free escrow, buyer retargeting, homepage promotion, a daily newsletter feature, third party syndication, an optimization report, and legal templates. With offices in Australia, Texas, and Amsterdam, and a team spread across the globe, Flippa can offer advisory support to business owners regardless of location. Their team can assist through each step, from business valuation, marketing, and deal flow management, to negotiation, document development, and closing.

Tech Innovation

flippa marketplace

This is a visual representation of how similar online businesses are to each other based on how prospective buyers interact with them.

Flippa incorporates a number of sophisticated technologies to support matching and information sharing. Their Recommender Engine is an AI-driven system to match listings with prospective buyers. The system assesses over 100 factors to determine a fit and relationship. When paired with notifications and automated emails, it promotes highly efficient connections.

Market insights

Flippa’s Market Insights is a comparative market tool available for every listing with an ask or list price over $5,000. The tool allows users to view performance and market data across similar companies. Data includes live and recently-sold listings, as well as benchmark indicators.

To promote trust and transparency, Flippa’s Integrated Data allows for integration between Flippa and online business service providers, including Amazon, Walmart, Magento, Shopify, Squarespace, Quickbooks, Xero, Wix, among others. The integrations enable up-to-date information to be automatically added to listings each month. Every listing with connected integration receives a Verified Listing badge viewable with the asset details.

Building Trust and Community

Flippa has taken a number of proactive steps to build trust and community among its users. The company has put in place a verifications team that reviews revenue and primary expenses for thousands of listings each month, marking those that pass with the “Vetted by Flippa” icon. They also provide a buyer funds verification option, so sellers can quickly identify serious buyers, and buyers can speed up negotiations by pre-verifying their funds.

Community-building resources include Flippa’s blog, podcast, discussion forum, and newsletters. Their blog provides a wide range of success stories, how-to guides, tips, stats, and informative articles. Their podcast, The Exit Podcast, has over 100 thirty-minute interviews with entrepreneurs who have bought and sold businesses, offering useful lessons while casting light on the world of digital M&A.

The Exit

The Flippa Discord channel and forum provides access to discussions, insights and the latest news on alternative asset investing. And lastly The Deal Newsletters highlight the best deals on the site in either daily, weekly, or monthly email installments.

Bottom Line

Flippa truly is “the investment bank for the 99%”, with deals that will appeal to first time digital entrepreneurs as well as experienced business buyers. Flippa offers buyers and investors a wide array of verified opportunities, and sellers a range of support options, resources, and a broad buyer network. The firm has a number of unique tools geared toward efficiency and transparency. If you are a website buyer, investor, or seller, you should definitely check out Flippa.

Disclaimer: This page contains affiliate links to Hatchit’s broker-partner sites. If you choose to buy or sell a business through a brokerage site we link you to, Hatchit may receive a referral fee at no additional cost to you. Thank you.

Read about more broker profiles. 

Why Buying an Established Online Business is Better than Starting from Scratch

by

Introduction

It’s a common problem - you’re an entrepreneur with a burning desire for success. Yet you can’t seem to get your business ideas off the ground, or scale them to the size you want.

Many entrepreneurs have realized that buying an established online business is often the smoothest path to running their own successful company. By buying existing digital businesses, you can gain access to companies that are already established and ready for the next level of growth.

When you start an internet business from the ground up, it can be a difficult process: time-consuming, overwhelming, and highly risky. To avoid these potential dangers, a smart alternative is to buy an established digital business.

In this blog post, we'll take a look at why purchasing an already established online business is often the better choice for savvy entrepreneurs who want to hit the ground running with minimal risk and time investment. From fully developed products and services to ready-made customer bases, learn why investing in an established online presence can provide powerful opportunities for long-term success.

buying an established online business

Should I Buy an Established Digital Business? Or Start My Own from Scratch?

If you're an entrepreneur looking into running your own business, you’re probably thinking of building a business from the ground up. Yet, have you ever considered buying an existing online business? By buying a profitable online business that’s for sale, you get instant access to loyal customers, consistent revenue streams, and established business processes. While each option has its own advantages, there are distinct benefits to buying an established online business. We explore a few below:

1. Leapfrog the business-building stage

Investing in an established digital business can be a great way to jumpstart your entrepreneurial journey and see the rewards of your efforts much sooner than if you had started from scratch. Buying an already existing web business means instead of having to develop something new, you can adopt and further optimize an established process that has already proven to be successful.

2. Reduce your risk

Many entrepreneurs and small business owners rarely consider growing their business through acquisition. Yet, buying an existing digital business can be less risky for an entrepreneur than starting a new business or product/service line from scratch. An established digital business has already gone through the initial stages of development, such as creating a brand, building a customer and supplier base, and developing products or services. It likely already has a track record of performance, including revenue and profits, which provides a level of predictability and reduces uncertainty.

You, as the new owner, can leverage the existing infrastructure and analyze existing data to identify trends and make better informed decisions about how to improve the business. This should save you the time and effort required to test new markets or product/service lines, fast-tracking your path to earning a return on investment.

3. Resources are already available

With a pre-existing business, the resources and infrastructure are already in place. This means that you don’t need to waste time attempting to build the back end of your business from the ground up. You can build from what is already in place.

When you buy a digital business, you also can review the product or service development plans and roadmaps they have in place. Being able to choose a digital business with a plan that you believe sets it up for success, or is adaptable enough to suit your goals for the business saves you significant time and effort. Someone else has already done the majority of the trial and error for you.

4. Leverage past sales & marketing data

The sales data of the online business you plan to buy is integral in understanding its historical performance and future potential. You’ll gain immediate insight into customer personas and potentially even past tactics they’ve tried which have both succeeded and failed.

Marketing data offers you a wealth of information regarding how prospective customers have responded to different marketing tactics. By buying an existing online business, you’ll get access to potentially years of data from trialling different strategies from day one. This will provide valuable insight into tactics that resonated with customers and those that didn’t, how to best penetrate target markets, access to industry-specific contacts, and how to best leverage customer loyalty.

5. Brand-building phase: Done

By buying an established web business, you know the brand-building phase has already been set in motion. You only need to continue building on established customer trust and reputation with customers and leads already familiar with the brand.

6. Marketing materials ready

Another advantage of buying an existing digital business is that they likely already have existing marketing plans and collateral. These can range from professionally designed and managed websites, blogs, and social media accounts to a library of content such as images, articles and email newsletters already prepared for you and your customers. Having these ready-made materials presents a consistent and coherent brand that won't need to be re-established, ensuring customers continue to receive consistent and clear messaging about your business and its purpose.

7. Established supplier relationships

The strength of existing supplier relationships should not be overlooked when buying an established online business. Taking on an internet business where relationships are already in place will allow you to benefit immediately from access to inventory, established ways of working and historical data. It’s much easier to negotiate favorable terms with existing than new network partners.

8. Live website and established SEO

When you buy an established online business, you are instantly getting access to a website that is already live. This saves you both time and money as it eliminates the need to build a functional website from scratch. Instead, you’re free to focus on business growth or expansion plans. The house is already in order, you can just focus on renovations.

A well-optimized website can also provide numerous benefits for online businesses, regardless of the platform used, such as Shopify, Squarespace, or WooCommerce.

Firstly, it means a better user experience, which can lead to increased engagement, longer session times, and a higher likelihood of converting visitors into customers. A professional and well-designed website can instill confidence in the business, increasing the likelihood that customers will make a purchase.

Secondly, this also means it’s likely to have already started working on its SEO strategy, which means it’s likely to rank higher on search engines, and make it easier for new customers to find their way to you. By buying a website with a track record of attracting organic traffic, you gain predictability and reduce uncertainty.

9. You know your customers

Access to key customer data can be incredibly valuable when buying an established online business. This data can provide insight into the behaviors and preferences of the business's existing customer base, allowing you, the new owner, to make informed decisions about how to market and grow the business. With this information, you can tailor their approach to develop new products or services that align with customer needs, and create more effective marketing campaigns.

Additionally, customer data can be used to analyze trends and identify areas for improvement, such as optimizing the user experience on the website or streamlining the checkout process. Overall, access to an existing wealth of customer knowledge can provide a powerful foundation for the future success of an online business.

10. Your customers know you

A solid customer base provides a foundation for the business and can be leveraged for future growth opportunities. By buying an existing business, you immediately gain access to an established customer base and can build upon it with their own marketing strategies. In contrast, building a customer base from scratch can be challenging and time-consuming. Furthermore, an established customer base provides a level of predictability for future revenue streams, making it easier to project financial performance and secure future funding, if required.

11. Positive customer reviews

Did you know that 49% of customers only buy from businesses they trust online? By reading what other customers have to say, aside from you, potential buyers are also provided with valuable insight into the business and its operations.

The quickest way to build that trust is by having good feedback and positive reviews about your business. These can prove invaluable to its growth, giving your company credibility, and generating organic sales through referrals.

When exploring a digital business marketplace for your options of established online businesses to buy, keep an eye on its existing customer-provided ratings and reviews. You’d be surprised by how much customer reviews mean for an online business’ long term viability!

12. Proven business model

A proven business model is one that has already demonstrated its ability to generate revenue and profits consistently over time. By buying an online business with a proven business model, you can leverage the existing infrastructure and established customer base, which can save time and resources compared to starting a new business from scratch.

Instead of spending your time working out the best way to start making sales, you can focus on building upon the existing business model by implementing new marketing strategies, introducing new products or services, or by expanding into new markets.

fast track your ROI

Ready to Fast-track your ROI?

Starting your own business can be exciting. However the path to success is often a long journey that involves a lot of hard work. While the cost of buying an online business may seem more than you’re willing to invest upfront, compare it to other costs traditionally involved in starting your own web business: hiring and training staff, testing different marketing strategies, designing your website and/or Shopify store, learning how to best set up your site to succeed within the algorithms….

Often, buying and maintaining an already profitable online business ends up being more time and cost-efficient for entrepreneurs. This means you can focus on optimizing an existing digital business with your specific skills and knowledge. By leveraging your abilities on an existing online business, you’re likely to see a faster return on investment.

Where to Find Established Online Businesses?

Researching your options is the first step in your business buying journey. Whether you’re looking to buy or sell established online businesses, aside from determining your needs and goals, it is important to ensure that you’re looking for your next web business on trusted marketplaces.

Hatchit, a global deal directory, allows you to search and filter across over 30 digital marketplaces and brokerage sites, on one platform.

What is a Business Marketplace?

Marketplace platforms usually feature a variety of businesses for sale, ranging from niches of e-commerce sites to content-driven blogs. Some popular platforms include:

Empire Flippers

Website Properties

Latona's

Quiet Light

App Business Brokers

Foundy

Flippa

Investors Club

Entrepreneur Networks

Another way to find established online businesses that are for sale is to network with other entrepreneurs in your industry or attend online business conferences and events. Don’t forget to do your due diligence before committing to a purchase though!

Buy-side Brokerages

Buy-side brokerages provide significant value in helping to match potential buyers and sellers. These platforms offer a marketplace where prospective buyers can browse and search for online businesses that match their interests and investment criteria.

By using a buy-side broker, buyers can get guidance in the search process as well as access to a wider range of online businesses for sale than they might find through traditional channels. This can increase the chances of finding the right business to purchase.

Buy-side brokerages also provide a range of services to help facilitate the buying process, such as due diligence, financial analysis, and transaction support. This can save buyers time and resources compared to conducting the process independently.

Additionally, buy-side brokerages often provide financing options for buyers who may not have the full amount of cash required to purchase a business outright. This can provide you with access to capital and make it easier to buy and start running your own online business.

buying an existing business

What are the Risks of Buying an Existing Business?

It’s important to know that whether you buy an established online business or start one from scratch, there are always risks involved.

1. Accurate valuation

One of the biggest challenges when it comes to buying an existing digital business is accurately valuing the business. Business valuation is a complex process that involves assessing various factors, such as the business's financial performance, industry trends, market demand, and growth potential. It can be difficult to obtain accurate and reliable information about the business, particularly if the current owner is not forthcoming with details or if the business lacks detailed financial records.

When considering buying an online business, you need to ensure that its assets, liabilities, and legal obligations are properly evaluated and disclosed before the purchase. This requires a thorough due diligence process to identify any potential issues or liabilities that could impact the value of the business or pose a risk to the new owner. You also need to consider its sources of revenue - over-reliance on a single website traffic source, specific season or service, or revenue derived from questionable marketing practices may increase the risk of unsustainable long term revenue.

2. Reliance on current owner

Many online businesses are small and may be heavily reliant on the current owner's knowledge, expertise, and relationships. If the owner leaves the business or is unable to transfer their knowledge effectively to you, the business may suffer.

Make sure all processes are documented and you fully understand how a business handover will work.

3. Unclear Branding

Make sure you’re comfortable with the current branding, or have a clear plan to change or update it. Unclear or inconsistent branding can create confusion among customers, leading to decreased trust and sales. Additionally, rebranding an established business can be a challenging and expensive process that may require a significant investment of time and resources.

The potential roadblocks concerning unclear branding can be countered by thoroughly doing research as to whether if it can effectively be built on for success.

4. High Competition

Online businesses are particularly vulnerable to competition as the barriers to entry are relatively low, and there may be many competitors offering similar products or services. If the business you want to acquire is in a highly competitive market, chances are, you may struggle to attract new customers and differentiate your business from the competitors.

Buying an established online business means taking on its existing competition. While it may be profitable now, you need to be aware of your competitive environment and be responsive to changing trends and pricing.

5. Changes in technology or regulations

The online landscape is constantly evolving, and new technologies or regulatory changes can disrupt established business models. You need to be prepared to adapt and change quickly to remain competitive.

Further, web-based businesses may be vulnerable to fraud or cybersecurity breaches, which can damage the business's reputation, customer trust, and financial performance.

6. Overleveraging

Overleveraging occurs when a buyer uses too much borrowed money to acquire a business, and the resulting debt burden becomes unmanageable. Online businesses, in particular, are susceptible to overleveraging because they often have lower startup costs than traditional brick-and-mortar businesses, and you as a buyer may be tempted to take on more debt to fund the acquisition.

Overleveraging can also lead to a lack of flexibility in managing the business, as this may force you to make decisions that prioritize debt repayment over business growth. It can be damaging to the progression of your business and may take years to reclaim the money owed or accrue new funds. Therefore, it is essential to carefully consider the debt levels that you can realistically manage before acquiring any online business.

7. High Maintenance Requirements

It's no secret that having an online business requires a significant level of ongoing maintenance to ensure that your website or e-commerce business is functioning correctly, the content is up to date, and any technical issues are resolved promptly. Depending on the type of online business, maintenance can be time-consuming and will require specialized skills.

This may take away other necessary business activities and find yourself spending significant amounts of money and time on maintenance rather than investing in marketing and growth strategies for your newly acquired business. Ensure you have, or can afford, the required resources and skills to keep the business running online smoothly.

Buy Established Online Business Today

Buying an established online business can be a complex and challenging process, and you as a prospective digital business buyer need to carefully evaluate and mitigate these and other risks before making a purchase.

However, there are clear advantages to buying and scaling an already established online business. From existing customer and supplier relationships, recurring revenue, reputation, systems and historical data, you can leverage the expertise of the previous owner, avoid the steep learning curve associated with starting a new business, and ultimately grow the business quicker and more profitably.

Hatchit

If you’re looking for your next online business venture, Hatchit can help you by efficiently identifying opportunities that match your buying criteria and connect you directly to listing owners and brokers. Save yourself the time of building a business and brand from scratch - use your skills to bring an already profitable e-commerce business or website to its next growth stage!

Photos from Pexels.com: by Vlada Karpovich, Liza Summer, and Rodnae Productions.

Disclaimer: This page contains affiliate links to Hatchit’s broker-partner sites. If you choose to buy or sell a business through a brokerage site we link you to, Hatchit may receive a referral fee at no additional cost to you. Thank you.

Total Ecommerce Sales for 2022

by

Summary

Total e-commerce sales for 2022 continued to power upward, according to the latest statistics from the U.S. Department of Commerce.

Total e-commerce sales for 2022 were estimated at $1,034.1 billion, an increase of 7.7 percent (±0.4%) from 2021. Total retail sales in 2022 increased 8.1 percent (±0.9%) from 2021. E-commerce sales in 2022 accounted for 14.6 percent of total sales. E-commerce sales in 2021 accounted for 13.2 percent of total sales.

Fourth Quarter 2022

The estimate for U.S. retail e-commerce sales for the fourth quarter of 2022, adjusted for seasonal variation, but not for price changes, was $262 billion, a decrease of 0.1 percent (±0.7%) from the third quarter of 2022.

The fourth quarter 2022 e-commerce estimate increased 6.5 percent (±1.1%) from the fourth quarter of 2021 while total retail sales increased 5.7 percent (±0.2%) in the same period.

E-commerce sales in the fourth quarter of 2022 accounted for 14.7 percent of total retail sales.

4th qtr ecommerce sales

As you can see from this graph, the percent of ecommerce sales vs. total retail sales has continued its climb higher, despite fears of a slowing economy.

Take a look at fourth quarter 2021 and third quarter 2022 numbers for comparison.

Source: U.S. Census Bureau News, Press Release, Feb 17 2023