5 Steps to Preparing for Your Future Selling Your Business Online

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Have you ever wondered how you would go about selling your business online? With endless information on how to start and grow your online business, when it comes time to sell your online business, it's normal to feel a little confused. The reality is that the majority of business owners do not start their new business with the intention of selling, and if they decide to leave their business, it is usually a confidential process.

So what steps should you take to familiarize yourself with the process of selling your online business? Read on for five important steps you need to learn today, whether or not you're ready to quit your business.

Step 1 is the assessment. A good place to start is to look at the net profit of your online business over the last 12 months and then multiply it, depending on individual circumstances, by 1 to 5. Based on this model, most businesses realistically sell at a multiplication of 2-3.

For example, if your online business has made a net profit of $100,000 in the last 12 months and you are looking to sell your business at a fair price (based on the net profit it is currently generating ), then you I'm looking to multiply by three, which gives a valuation of $300,000.

Of course, you will then need to consider all additional value factors such as available stock, operational equipment, mailing lists, social media and customer reviews.

Generally, the higher the valuation, the longer it will take to sell your business online, so you need to take that into consideration. If you are looking for a quicker exit of one to six months, you may need to consider valuing your business on a 1 to 2 multiplication to ensure a quicker sale. If you are happy to continue to realistically run the business for the next 12+ months, you can go for a higher multiplication of 3 to 5.

Once you have a general idea of ​​what your business might be worth and how much you would be willing to sell, it's time to take the next step.

Related: 3 Signs It's Time to Sell Your Business Online

Deciding where to list your business online will have a direct impact on your final price, so having a solid understanding of your listing options is essential. The two most popular options are:

Selling through a Broker: Brokers will help you assess your business and set the selling price. They will handle the entire sales process and vet potential buyers on your behalf. It's ideal if you're short on time or need extra sales support. The downside to this option is that brokers often charge a substantial upfront fee (which doesn't guarantee a sale) plus a hefty success fee, normally around 20% of the sale price. For small businesses with valuations below $500,000, this could have a significant impact on the profit you make from the sale. However, for online businesses valued over $500,000, it may be necessary to engage a professional broker to reach higher net worth buyers.

Flipping Websites: Flipping websites are online marketplaces for buying and selling businesses. They operate similarly to a brokerage in that there is a listing fee and a success fee, but the fees are often much lower (with listing fees starting at $49 US$). You can also choose this...