How to Be Taken Seriously as a Buyer When Acquiring an Online Business

In business, every kind of interaction carries a set of expectations and standards. Knowing how to be taken seriously as a buyer requires understanding the key qualities that sellers are looking for.

Most people have a pretty good idea about what employers look for in job interviews. We all know that effective communication, good questions, and common courtesy are all necessities when seeking employment opportunities. However, few people understand what is required to effectively navigate the marketplace of online businesses.

This article will reveal the steps that you should follow to be taken seriously as a buyer. These steps will also help you understand what you should look for and avoid in your search for the perfect business.

 

How to Be Taken Seriously as a Buyer of an Online Business 

When buying an online business, sellers will be sizing you up to determine if you’re worthy of leading their business. 

If you navigate the process competently, you’ll have a much better chance of being taken seriously as a buyer and winning the deal. There are a few important steps you can take to make a favorable impression:

• Do your research
• Ask good questions
• Respect the seller’s time
• Make a solid offer
• Communicate and correspond in a professional manner

“When buying an online business, sellers will be sizing you up to determine if you’re worthy of leading their business.”

Do Your Research

You wouldn’t approach a dealership to buy a new car without researching the makes and models offered. Similarly, don’t reach out to a seller until you’ve learned as much as you can on your own.

If a broker is representing the seller, you should be able to gain access to a comprehensive marketing package. In it, you’ll find extensive information about the business you’re considering acquiring.

Go through the material with a fine-toothed comb to become well-versed in the business’s operations. 

Different businesses have different metrics that are important. For example, if you’re looking at content sites, you may want to pay close attention to pageviews and affiliate relationships. If you’re seeking an ecommerce business, you might want to examine its supply chains and reviews. Whatever the industry, be sure to look at the metrics and details that matter the most. 

Ask Good Questions

If you do thorough research, you’ll undoubtedly uncover a list of questions that require answers. 

You’ll be able to answer some questions by doing a quick Google search or speaking with colleagues. If that’s case, try to find out the answers through other sources before speaking with the seller. 

“Good questions show the seller that you’ve done your homework and know what you’re doing.”

Other questions are specific to the business. Make a list of important questions to ask the seller during buyer-seller phone calls. Asking great questions has two significant benefits.

For starters, good questions will provide you with invaluable insight into the nature of the business. The more you can learn from the seller, the better off you’ll be when making a decision.

Second, good questions show the seller that you’ve done your homework and know what you’re doing. If they can see that you’re competent, buyers will take you more seriously.

Serious Buyers Respect the Seller’s Time

Doing your research and asking good questions helps contribute to a third critical piece of the equation. Always respect the seller’s time.

Some buyers assume that they’re in the driver’s seat. However, if you’re working with the seller of a successful business, that assumption is probably false. More than likely, there’s more than one potential buyer examining the business. 

“Treat the seller like the busy and smart professional that they are.”

If you want a buyer to take you seriously, don’t waste the seller’s time by asking for information or documents that are already easily available. If the marketing package includes metrics about the business’s Twitter, Facebook, or Instagram account, don’t request that information again. 

Treat the seller like the busy and smart professional that they are. 

Make a Solid Offer

Once you’ve gathered all the necessary information and had your questions answered, it’s time to decide if you want to make an offer. 

If you decide to move forward, be sure to make a solid offer that reflects the value of the business. Perhaps, that means offering the full asking price listed by the seller. 

If you make an offer that’s less than the asking price, be sure to have sound reasoning to back up your value claim. Why do you believe the business is worth less than its stated value? 

If you notice legitimate points that reduce its value, you may be able to negotiate a lower price. However, it’s critical that you navigate the process respectfully and fairly. Doing sot will make the seller see you as a serious buyer.

Serious Buyers Communicate in a Professional Manner

Throughout the deal, there will be a lot of back and forth between you and the seller. For a buyer to take you seriously, you’ll need to communicate in a professional and timely manner.

If the seller asks questions, be sure to provide thorough and complete answers. When you have questions from the seller (which you will), clearly spell them out in a way they’ll understand.

“If the seller asks questions, be sure to provide thorough and complete answers.”

Because you’ll be exchanging a lot of information, it’s also a good idea to set up a system to keep track of everything you receive. This is especially true during the due diligence process, as well as the transition phase. The better your communication, the quicker you’ll complete the transaction and start making money with your new business. 

How to Negotiate a Great Deal When Buying an Online Business

If you follow the points mentioned above, you’ll be well on your way to negotiating a great deal. However, there are a few additional tips that can help you as well.

• Demonstrate your competence
• Identify their goals
• Ensure everything goes smoothly

Serious Buyers Often Get Better Deals

Being a serious buyer means taking all the right steps during the acquisition process. However, your broader entrepreneurial skillset also plays an important role. If you can demonstrate that you have the skills to take the business to the next level, that can go a long way. 

“Most sellers truly want the next business owner to succeed. If they believe you have what it takes, they’ll likely be more open to accepting your offer.”

Effective negotiators know how to communicate the value that they can add. Whether it’s niche experience, specialized marketing knowledge, or industry connections, it’s important to know what sets you apart. 

Most sellers truly want the next business owner to succeed. If they believe you have what it takes, they’ll likely be more open to accepting your offer. 

Identify the Seller’s Goals

Most sellers have specific goals. Sometimes, they’re set on receiving a specific asking price. Other times, their main priority is receiving the full purchase price at closing. 

If you can identify what is most important to them and craft your offer to satisfy their goals, you’ll be in a great position. By communicating well and giving them what they most want, there’s a good chance you can avoid derailing a deal. 

Ensure Everything Goes Smoothly

People like to work with others who are easy to work with. If you can ensure that everything goes smoothly, the seller will be much more likely to move forward with you.

Communication and organization are two of the most important elements of a smooth business deal. Just as consistency and reliability often lead to a high credit score, those qualities also build positive relationships and better deals. 

“People like to work with others who are easy to work with.”

How Buyers Can Determine the Worth of an Online Business

The SDE multiple method is most appropriate for valuing most online businesses.

The SDE multiple method calculates the market value by multiplying the Seller’s Discretionary Earnings by a number known as the multiple. The multiple is determined by four primary factors: growth, risks, documentation, and transferability. This article goes into more detail about the valuation process. 

Although valuation is one of the important buyer skillsets, there are always ways to get help when working with a qualified Advisor. 

Steps to Successfully Purchasing an Online Business

Purchasing an online business can feel like an overwhelming process, but it doesn’t need to be complicated. There are a few good buyer guidelines that can help you navigate the experience with clarity and confidence.

• Identify your investment criteria
• Evaluate opportunities
• Make an offer
• Close the deal
• Complete the transition period

There are obviously several steps included in each of these stages, but this is the general pathway to acquisition. 

If you’re new to the online marketplace for acquisition opportunities, it may feel overwhelming at first. However, if you start by identifying your goals and criteria, the process becomes a lot more clear. As you explore ecommerce platform choices, social media strategies, SaaS companies, and specific ecommerce business models, you’ll start to identify what feels right for you.