Buying online business related

Chris_blake1Chris_blake1 subscriber Posts: 5 Member


I’m new here and to this side of investing so forgive me if I make any mistake in asking these questions. I’m young and could really just use some advice/direction from wiser more experienced people than myself. As of the end of this coming March I will be able to invest 50k into an online business of my choosing. I’d like to invest either in an existing e-commerce store(b2c) OR a content website utilizing typical sources of driving traffic for revenue such as ad sense, affiliating, lead gen, etc. Here are my questions...

  1. I’d like to either invest in content website and utilize that traffic to help kickstart a e-commerce store or invest in existing e-commerce store and start a content website to drive traffic to it over time. Which is the better strategy? 

Note: If I bought a content website that’s generating revenue/traffic the e-commerce store I’d start that I’d drive the traffic from the content website to would most likely sell product I make/design myself or have printed. Depending on which business model is quicker to scale and generate income is also a factor in which strategy I’d use to buy and which one to start one. If one takes significantly longer than the other to scale I’d probably want to utilize my money in buying the one model that takes longer to grow. 

2.With a 50k down payment and seller/other means of financing what price range should I roughly shoot for an online business? How much are sellers typically willing to finance?  

Note: I gross about 75k year with my current job credit score in the 700-750 range if that helps answer the question.

3.Which model is more sustainable/profitable with my investment?

4.Being my first online business investment I’d feel safer using a broker or professional to vet and do due diligence to the business I’d buy in addition to my own. Brokers such as Fe-International, empire flippers, etc. However, I see two problems in this approach...

Problem A: The brokers are in the sellers pocket. Is there such thing or any recommendations of a buyers broker, or consultant? Need I be concerned about this or am I overthinking it? I do understand these brokers also rely on buyers satisfaction for reputation.

Problem B: Unlike sites like Flippa where quality is less, but choices high other online brokers that do a good job vetting these businesses typically have a smaller list of options....with that said and with no affiliation to these brokerage firms would it be reasonable to search for more sellers online on social media, forums, communities, etc and request those I’m seriously inquiring about that they list there businesses on one of these brokerage sites? Are there personal consultants for hire I could use to vet these businesses I come across outside of a trusted brokerage instead? 

5.Depending on the strategy whether I buy the e-commerce store or start one instead of spending money on a consultant/advisor to help me run it I considered inquiring of someone with experience in managing these online businesses, but without the capital to buy/start one themselves to give them the opportunity to make an agreed commission off what they sell in return for their knowledge on how to run it and to make it more passive for myself. I’m not interested in partnering, but if anyone has advice on that idea or recommendations on where to look for in the future I’d be happy to hear your input. 

6.Can owners explain the basics in tax, license or any other requirements/things I need to have in place or be aware of to buy/transfer over an e-commerce or content web to myself? 

7.Do I need to formulate a team of specialists to pursue this investment? Lawyer, cpa, accountant, virtual assistance, online business consultant, etc? I’m a believer in you get what you pay for, but seeing that money doesn’t grow on trees could I get away with hiring someone with experience in running an online business as I previously suggested to negate the need for other expertise? Any suggestions? 

8.What are the safest platforms to use or look for in buying or starting an e-commerce business that have traffic. I understand selling on giants like eBay/amazon come with there own risks and it’s not wise to rely your business success solely on them. 

I don’t expect anyone to answer all questions, but anything helps. To clarify, I’m not asking due to laziness in research, but because I’m having a difficult time finding it. Not only does there seem to be a limited amount of info online regarding online businesses in general the info there is deals mostly with starting in contrast to buying. If anyone has any recommendations on where to find this information please share it. Also, I cannot emphasize enough that I’m not affiliated or trying to solicit anyone. I’m only trying to educate myself better on the subject and I know Im not the only noob with these sort of questions so any answers I’m sure will be of gratitude to any other readers out there. I appreciate everyone’s time, thanks!


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