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the emotions of selling on internet business

the process of running a business revolves around taking input and data and using it to deduce a strategic plan of attack the more intellect and finesse that is employed the stronger and more impactful the results understand the road ahead in the acquisition process can be fraught with lowball offers unreasonable demands not always at the behest of the buyer interpretations during due diligence from so called experts that lack tremendously in common sense and contingencies placed on the deal by the financing entity there are times that the annoyance builds up to a point where a seller might take these things personally this is a mistake logic needs to rule and emotion needs to be checked at the door in every case it is imperative to step back take a deep breath and look at the bigger picture it may not be the perfect picture but life itself is not perfect and the process of selling a business is no different in the end if the results are in line with what you expected but every detail is not as you would have wished then it makes sense to complete the transaction believe me when i tell you the grass is not usually greener on the other side and the next buyer in line will be substantially similar to the one you are contemplating walking away from and as the case is with any transaction both sides must be willing to lose on some points and gain on others -- this is the essence of negotiation no transaction ever results in one party getting everything they want -- what039s key is to identify deal breakers in your transaction and stick to them all the other emotions and issues that arise during deal making are just noiseon the buyers side the process is even more difficult you are entering an arena where you will never know what the seller knows and you will have to employ both intellect expertise and common sense -- both you and the professionals whose advice you seek buyer deal stressors are similar to seller deal stressors an action may occur during due diligence that you perceive as negative from the seller or his agents but this does not change the dynamics of the deal buyers too should take a step back and look at the deal as a whole and not as though every detail may be a make or break scenario if the big picture is still solid as you viewed it when you entered into the agreement then why waste time obsessing over the small issues again the key is to lay out your own deal breakers and to ensure you stay strong on those issues secondary issues should be negotiated and you will win and lose some of thoseother forms of emotions that run high on the buyers side are the factors of uncertainty are you making the right move as small details don039t go your way you feel added pressure and the emotion builds and you wonder if you this is the right thing to do i can liken it to an experience i had in the past moving forward in a deal with a company i owned i had opened my first 2 stores in colorado and decided that the east coast would be more lucrative i started in new york and looked for a location that would give me entry into this side of the country after being turned down by all the malls in the new york and new jersey area i received an offer from at the time the largest mall on the east coast - just outside of philadelphia everything went well and i decided to go after the washington dc market which was highly successful the offer i received was not in my quotformulaquot at that point i had 30 -- 40 yard line locations at reasonable rents in this case the rent was double my norm and the location was at the end of the mall next to a jc penney store the penny store however was ranked number 4 among all their locations and doing extremely well what i also didn039t like was the fact that the escalator out front blocked my store and as the patrons departed they continued into the mall without seeing me as things turned out everything went wrong from the contractor running me way over budget the mall and contractor arguing over who was supposed to have pulled permits for work the mall had done to my commencement coming and going without my store opening money and credit lines were running on fumes when we finally opened during this process i had many sleepless nights and wondered over and over if i made what might be a fatal mistake for my company when these moments of uncertainty came i went back to the original homework i had done and it all spelled the same answer which was another successful store as it turned out all that negative emotion was a complete waste of time because after i opened i got off to a fantastic start and as i originally calculated it was a very smart decision once again use intellect not emotion during the process of buying or selling a companyfor more information on the sales process go to websitecloserscom or website closers at youtubecom
operations for website buyers

today039s segment is going to be on the ins and outs of website operations one of the key differences between other business brokers and website closers is that we are owned and operated by internet entrepreneurs ecommerce owners and operators that means that we know all details of site operations because we live them every day these operations include search engine marketing social media optimization inbound amp outbound marketing content and inventory management systems amazon seller central sears ebay rakuten and other marketplaces data feed management search algorithms and many other aspects of daily life associated with ecommerce operations for many interested in getting into ecommerce it can be a daunting task many buyers have worked in a particular industry for many years and would either like to pick up a website as a side business or perhaps dive deep into a large website and leave their current job behind in either case if a person has not been involved in site operations there039s nothing to be concerned about first a website seller is going to include ample training time on the key aspects of site ops including how to enter products into the content management system how to manage inventory how to make changes to the front end etc and second many times the sellers of these sites themselves are not programmers over 95 of them so they utilize outside development teams for larges changes when they are necessary other outside sources they may look to are semsmo operators content developers for blogs and articles ppc managers and moreadditionally as we walk the buyers sellers and lenders banks through the process as professionals already in the internet sector we can answer questions that few other brokers can answer for instance what is our take on using the magento platform compared to say shopify or big commerce what are the advantages to particular site layouts and a basic analysis of a site does it utilize a responsive theme will it need to be updated soon has it been hit with algorithm updates etc all of these questions will come up during the acquisition process and website closers is the very best brokerage to help answer the tough questions that sometimes go unanswered by brokers without knowledge of this industry or by opposing partiesif you are interested in selling or buying a website then website closers is the go-to website brokerage we have closed over 30 million in deals to date and we are quickly becoming the standard in this business thank you for listening today and for additional videos related to buying or selling an online business search for website closers on youtubecom please feel free to contact us at infowebsitecloserscom or toll free at 800 251-1559 to discuss your needs and get you started down the right path
website buying negotiation tips ecommerce acquisitions

we are a boutique website brokerage focusing on helping entrepreneurs with the process of buying and selling internet companies amazon stores software companies and other businesses in the digital space we are a unique mampa firm that not only facilitates the acquisition process in the sale of a business but because our founders are internet entrepreneurs as well were in the best position to provide guidance valuation and market knowledge when it comes to developing exit strategies and buying techniques when buying or selling a digital businesstodays segment is going to focus on a few tips that we would like to convey to those interested in buying a website for sale by websitecloserscom or by any other brokerage to begin with we recommend you consider the opportunity to have a website broker attorney or other consultant assist you with any acquisition transaction while you may be the best negotiator you know youre always going to be at a disadvantage when representing yourself because as the buyer you bring emotion into the deal and since youll be working with the seller long after the deal closes emotion is the last thing you want in the deal by using a third party like an internet brokerage an intermediary can help steer you in the right direction help identify negotiable touch points and help enlighten you to market and lending standards no matter how experienced you are attempting to walk down the road of buying a website is a difficult task especially if an sba backed lender is going to finance the deal the deal structure contract and process needs to be in line with bank and sba standards at websitecloserscom weve closed a very large number of sba-backed deals so we know what to expect and how to structure a deal to ensure that it passes all rigorous stress testsregarding the negotiation process it can seem quite daunting if you are new to deal making chances are that there will be a number of bright individuals involved in the process and when buyers are negotiating the deal they might feel threatened and less likely to ask the tough questions and demand all the answers but when handled correctly in our mind negotiations are a very health part of the transaction process the reason we say this is because a good business acquisition is never lopsided towards a single party and negotiation arent always about giving in its more about finding a resolution and solution to all deal points in a way that is respectful cognizant of party desires and fundamentally the best solution to get the deal through to closingso the following are a few thoughts on preparing to negotiate the purchase of an internet company whether it be a straight ecommerce platform amazon seller central account software application or some other digital asset all preparations tend to follow the same basic trends:1 before beginning negotiations get as much financial data as possible and run your own numbers to determine the highest purchase price youre willing to spend on the deal2 once negotiations start just focus on the 2-3 biggest picture items that have cropped up as deal issues youre not going to win every deal point but understanding where you can give and where you need to win is critical right off the bat3 dont come in with a low ball offer again all of this is of course our opinion based on our experience but low ball offers especially in the internet sector never get anywhere and will usually end up making you look bad make sure the offer is realistic because good internet businesses do not stay for sale long our good listings usually go under contract within 1 week of us receiving them4 line up the professionals you want in your corner this will include attorneys accountants business brokers and tax advisors all or one can in some fashion help you through the process of purchasing a business 5 prepare a smart list of questions for the first phone conference with the seller try to understand why the business is being sold what the learning curve will be for a buyer whether other buyers are in the mix and what opportunities the sellers sees for growth6 try to understand the seller on a personal level while the whole process should remain professional it is critical that you have a great working relationship with the seller because in virtually all website acquisitions the seller and buyer need to communicate with each other for many months or years after the transaction closes by bringing things to a personal level you are in a better position than other buyers because people tend to trust those that are open enough to talk on a personal level
website valuations

hi my name is ron matheson im a senior vice president with websitecloserscom were a boutique internet business brokerage that focuses on helping web entrepreneurs with the process of buying and selling internet companies amazon stores software companies and other businesses in the digital space we are a unique mampa firm that not only facilitates the acquisition process in the sale of a business but because our founders are internet entrepreneurs as well were in the best position to provide guidance valuation and market knowledge when it comes to developing exit strategies and buying techniques when buying or selling a digital businesstodays segment is going to focus on the valuation of websites this is a key factor for the vast majority of business owners when reviewing exit opportunities yet so few brokers truly understand how to value a web-based business most of the brokers weve come across like to provide a multiple to cash flow for their valuation formula in our opinion this could potentially ignore many other factors and aspects of a digital business as online business owners ourselves we understand the point of view a seller might have when they ask that potential buyers look beyond the standard earning multiple but what factors can have an impact on the purchase price of a business with web companies theres a lot to think about when looking at the past current and future operations to attempt to derive a purchase pricefirst its important to note that this is not bricks amp mortar so many business brokers today are pass-downs from the days before selling internet companies was a reality these brokers still attempt to use old school methods to value these businesses which again we feel could potentially cause a business owner to leave something on the table at closing but you cant blame them for decades they sold restaurants convenience stores liquor stores franchises and more but when it comes to the sale of a digital business you need the experience of tech professionals those with specific experience selling technology companiessecond a web companys value should include a review of scale opportunities and the subsequent cost of scale this will help identify near term growth opportunities in order to create a future cash flow model post-sale and post-scale if a business can be expanded into other marketplaces if the advertising budget has either been underserved or not served properly if organic search is a large portion of its visitor mix if the business is in a niche sector or otherwise has barriers to entry or if a business has created its own brand then these are a few of the factors that should be analyzed when calculating an internet companys value for this reason and many more we simply dont understand how companies can use an online calculator to identify the value of a website or other property a simple calculator with a few inputs is simply not the proper way to look at a tech companys value rather you need the advice of an expert technology broker one that understands not only the business itself but also has a network of buyers waiting for solid technology dealsat website closers we have an abundance of experience selling web companies and a large buyer pool waiting for us to provide the next deal buyers are never a problem for strong web companies the more difficult aspect creating the best deal structure purchase price and marketing in order to maximize the purchase price of the business on the market its worth a business owners time to give us a call or to send us an email so that she can learn what options are available whats going on in the sector and whether now is the right time to make a move the business brokers at websitecloserscom are worth their weight in gold when it comes to deal making negotiations and small business financing if you are contemplating the sale of an internet company or just want some advice about the industry we highly recommend that you give us a call to allow our brokers to help you with the process whether its a listing we own or not we can help to get in touch with us send us an email at infowebsitecloserscom or call us toll free at 800 251-1559 we will give you a step-by-step approach to our methods so that you have absolute confidence in our ability to represent you in the sale of your businessthank you for listening today and for additional videos related to buying or selling internet properties search for website closers on youtubecom
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