If you are contemplating purchasing one of the many established websites for sale, rather than opting to start your own, here are some risks that you should consider prior to purchase.
Although its’ true that established online businesses will come with an existing customer base and that you can start trading straight away, you will also inherit all of the problems that the business has had over its years of operation . You need to know exactly what type of website you’re buying and be clear about the risks and liabilities involved.
Investigating the history of any websites for sale when you are buying an established eCommerce business is a complex and time-consuming process. You will need to investigate – in detail;- the business, accounts, practices, history, reputation as well as all possible legal liabilities and potential problems that may arise as a result of previous actions prior to your taking ownership.
You will have to thoroughly check the online history, online reputation and all previous business operations. You should also check that the business has operated with the appropriate insurances and registrations. Check to see if there is any negative feedback, comments of negative reviews about the business posted online? Has the domain name ever been blacklisted or associated with spam phishing or other questionable online activities? Has the business email address ever been blacklisted? Has the website ever been the target of hacking? Does it have any security issues or weaknesses? Does the business owe anyone money? This process is known as due diligence.
Buying an established website for sale, is a serious investment. You should always seek professional legal and financial advice before signing any documents or taking ownership of anything.
To conduct ‘due diligence’ you will need to carefully review:
- income statements
- records of accounts receivable and payable
- balance sheets and tax returns including business activity statements (last 3-5 years)
- profit and loss records (last 2-3 years)
- bank loans and lines or letters of credit
- the seller’s claims about their business (e.g. their reasons for selling, the business’s reputation)
- privacy details (e.g. of employees, trading partners, customers)
- stock and suppliers, what arrangements are in place
- intellectual assets of the business (e.g. intellectual property, trademarks, patents)
- trading history
- online & social media reputation, feedback, comments and reviews.
- domain name history, black list, spam, banned check
If all of the above, seems like a daunting task – you’re right it is!
Home Business Websites offers websites for sale that are all brand new, so there is no need to carry out any ‘due diligence’ or to investigate the previous history of any website.
If you have always wanted to start your own online business, to be your own boss, but do not want to take the huge risk of outlaying thousands of dollars for what is potentially a legal minefield, not to mention taking on “someone else’s problems and history”.
Why not play it safe, start out small with an investment of under $3500 you can get started with your own online business and website and grow them at your own pace.
Visit our website to browse our ready-made online businesses and websites for sale
Or work with our design team to create a custom designed website and online business, based on your requirements. Select your own business name, domain name, graphics, colours, branding, products, suppliers and more!
Start your own business today and develop a brand and a reputation for your online store, that you know you can trust, one that won’t ‘come back to bite you’.
Starting your own online business is just a click away.