The Internet has created a new and exciting economy that offers extraordinary scope for either starting a business, or investing in the success of small and medium enterprises that are making some impressive profits. Traditional ways of doing business have changed, and many people are seeing the benefits of investing in established online businesses.
Why online business can be good investment
- Lower investment risk.
Online businesses are generally lower risk than brick-and-mortar businesses, and more adaptable than a traditional business. If it is your own business it may take some time and attention to get it off the ground, supported by innovative, targeted management thereafter. But if you are investing in a good business run with a tech-savvy partner, you may find your input supported by low overheads, low operational costs, and worthwhile returns.
- Asset value.
Successful online businesses hold real asset value. Like any business, selling an online business may depend on the current economic climate, but the more an online business establishes and flourishes, the more the value may escalate over a surprisingly short space of time.
- The power of online marketing.
Online businesses come with affordable marketing options all ready to hand; trade can be boosted by social media and a host of enabling tools that drive awareness of the brand. Customers and business competitors can be monitored in real-time. Businesses can adapt strategies as needed. Brands can be further advanced by the speed and immediacy of the Internet – all of which builds valuable returns and helps to bolster investment goals.
- Doing business 24 hours a day.
A key advantage of investing in online business is that it is possible to do business 24 hours a day all year round. This means the shop never closes and is open internationally at all times. Online systems ensure sales don’t stop. This can prove an extremely valuable basis for your investment.
- Online business is global business.
The benefit of online business is that it can be done anywhere. There is continual access to a global customer base. This aspect attracts many canny entrepreneurs to develop businesses online. Millions of businesses are now purely online. It makes sense, therefore, to invest in this growing trend with innovative people who are often able to grow more than one business through increasingly insightful and profit-driven strategies.
Online brokerage platforms
A useful and popular way to find and invest in online businesses is by using online brokerage platforms.
Flippa is a platform where you can search and buy online businesses that match your criteria. Up to 5000 new businesses and domains are listed for sale on Flippa every day. These sites are Google verified and data checked by Flippa, saving you a goodly amount of research time. If you are willing to do the work of searching for deals, you can buy an online business in an auction using Flippa.
The platform provides services that include: approaching the business owners, assessing their business against your criteria, and presenting you new opportunities weekly. Once you choose a business you would like to buy, Flippa undertakes due diligence by helping you to uncover the unique selling proposition, opportunities for growth, and any operational gaps. They will also help with negotiations.
Empire Flippers is another platform where you can search and buy online businesses.
Furthermore, Empire Flippers curate their list of online businesses, so low-quality sites should not be found in there. Prices are often negotiable. The Empire Flippers team will communicate with the seller to work out a deal.
Shopify Exchange is one of the most highly recommended e-commerce platforms in the industry where merchants can list their online stores for sale, including traffic and revenue data pulled directly from Shopify. When considering buying one or more Shopify stores, you need to know: the products, who produces them, whether you may need warehouse space, dropshipping procedures, delivery management, and the marketing strategies that may already be in place.
Foster Wealth: steering business, driving wealth
At Foster Wealth innovation, agility and in-depth market acumen are our daily fare. The volatility of markets, unexpected events, and fluctuating values continually take us to new levels of interest and possibility. Constant re-assessment and evaluation are how we keep ahead of the curve – but our hard work, professionalism, attention to detail, and personal attention are the hallmarks of our business and will never change.
Find out more about us at: www.fosterwealth.co.za