There are many ways to make money online. In fact, online businesses continue to thrive in today's time. From dropshipping to blogging to marketing, you can do everything on the Internet. However, what are the realistic ways that you can do to get started? One way is through buying an online business.
In this episode, Jaryd Krause joins us to talk about how buying and selling online businesses work. He shares the biggest challenges in this industry and how you can turn them into opportunities. If you’re interested in the know-how of succeeding in website businesses, check out these episode highlights, and don’t forget to tune in to this podcast!
About Our Guest:
Jaryd Krause is the founder and CEO of Buying Online Businesses Podcast, where he mentors people on how to make a profit on website businesses. He helps other aspiring clients to reach success just like he did. Jaryd used to work 60 plus hours per week as a plumber, and now he owns multiple online businesses.
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Jaryd’s Insights on Buying an Online Business
Getting Into Business
- He took inspiration from people who were doing well with their businesses. Naively, he tried starting his own and failed a lot of times.
- He then turned to the Internet and realized that he could buy online businesses.
- He taught himself how SEO and digital marketing work.
- Eventually, people started to find out about what he does and came to him for help.
The Biggest Challenges in Figuring Out How Online Business Works
- He hated being a plumber and tried running away from it. More than that, he tried running away from his life.
- He traveled around the world from 6 to 12 months. After that, he realized that he needed to set a goal in line with his love of traveling.
- He first tried out travel blogging. Although he did make money, it was challenging. However, he learned more about how online business works.
- He set up a drop-shipping store that led him to his aha moment.
- If you’re going to invest in anything, you need to do your due diligence.
Buying an Online Business
- In business, what gets measured gets managed.
- Even if you work with a good broker, you still have to contact the seller to know about the finance and other information about a business.
- You can make an opportunity out of not knowing the numbers.
- He suggests not to spend less than $10,000 range because otherwise, you don’t get what you paid for.
Financing a Business
- You can get financing from a finance broker who will help you get it from a bank or a lender.
- You can also raise your capital.
- The collateral varies from different lenders.
Creative Deals When Buying an Online Business
- If you’re going for a no-money-down deal, you’re settling for a no-good business.
- “It’s better to buy a good business at a fair price instead of a good price.”
- He encourages creativity but not risky creative deals because you may end up with more hassle.
- The value of the business is dependent on the business model.
Opportunities in Buying an Online Business
- Sellers are prepared to take less money to give the business to an attractive buyer.
- It’s also dependent on how sellers think a buyer can flourish the online business.
- Buyers need to understand how to manage the business by numbers and delegation.
Recommendations for Entrepreneurs
- Website brokers enable you to see the numbers—its cost, how much it makes, its expenses, among other information. Brokers allow you to take a look at the business model.
- The next step is honing due diligence.
When Do Things Go Wrong?
- People buy businesses when they haven’t verified the financials and looked at the merchant account and traffic.
- Buyers should have full responsibility when they decide to buy or invest
- in a business.
Online Business Niches
- There are some like real estate where they buy, renovate, grow, and flip the business.
- There’s a market where people use skills like marketing to attract potential clients.
- There is also a business niche where everything is prepaid and set up.
- Some sell personal blogs, and others have personal brands attached to the business.
The Way To Success
- Making cash through a business has a lower investment risk.
- Do less to make more; focus on what’s working and make it better.
- Don’t expect success overnight.
- Set goals and work towards them; pursue your passion.
- The One Thing by Gary Keller
To access Jaryd’s blog and podcast, visit Buying Online Businesses.
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