Even with a fair price, you have to ask yourself if this Web site fits into your business plan? It’s always a good idea to have a complete plan before you decide to purchase a Web site. Try to think of every possible aspect of owning a Web site. Coming up with fool-proof answers to the questions mentioned earlier will be your best defense against making a purchase that you will later regret. This plan is often better implemented when it is written out. This provides a visual reference to also use as a checklist, so that no question is left unasked or unanswered. If you go into a purchase without any plan at all, the outcome usually isn’t a positive experience.
Further questions to ask before this plan will be considered complete:
Is this site going to fit into your business model?
You need to figure out how this Web site will fit in with other virtual properties you already own, if it even does. Maybe you are simply looking to purchase a site and flip it. It’s a consideration you need to make before finalizing the purchase.
Do you have an exit strategy to be implemented when you want to sell the site?
It’s often unlikely that you will keep this site forever. Even if you are absolutely certain that you won’t ever want to part with your newly purchased site, it’s always a good idea to have an exit strategy. Is it going to be sold? Can it be combined with another Web site you own? Are you willing to let it just go by the wayside? These are all considerations that need to be figured into your plan before purchasing a new site.
What will this site do to help your business grow more after you buy it?
Don’t buy a site just because it’s shiny. You should have a good reason for wanting to make the purchase. Maybe it will lead more traffic towards a few of your other Web sites. It might actually attract many more new customers to your current business, thus helping you to quickly expand. There are many possibilities. It’s always helpful to brainstorm several ideas and keep an ongoing list, in case one idea might trigger another later on.
Who is going to be the one to do all the work on the site?
Be sure to have someone who can keep the new site going. If it isn’t going to be you, then you definitely need to have a person who will be in charge of keeping the site running smoothly. You can’t purchase a new site that is doing well and expect it to continue being successful without at least some maintenance. Hiring someone might be necessary, unless you want to take some of your own time to make sure the new site continues to be profitable. It won’t be worth the money spent on it if you let it go by the wayside, just because you didn’t figure upkeep of the site into your purchase plan.
Where is the money going to come from to keep the site up and running?
A good business plan budgets for investing. Borrowing money is sometimes the only way possible to afford the purchase of another Web site. Be sure to count the cost. Knowing exactly how much money will be needed to buy the site, as well as the amount necessary to maintain it successfully, is the key to not going broke from the purchase. It’s also important to know where this money is coming from. Is it going to be borrowed from a bank? Are investors going to supply the funds? Some loans charge a high interest rate and this also should be taken into consideration.
Many sites are successful enough that the revenue from the site is adequate to help with any ongoing maintenance costs, as well as helping to pay for the site itself. There also may be enough revenue being generated from other sites you own, providing a plentiful flow of money coming in for whatever you need.
Making a Web site purchase on a whim can be exciting at the time, but can pose many problems in the future. Having a solid business plan in place before buying a Web site is the best way to avoid making a series of irreversible mistakes later on.
Did you this article and when it caught your lens? If you it, then read the preceding articles in this series at :
Virtual Real Estate Bootcamp – Bootcamp
Virtual Real Estate Bootcamp – Part 1: The Seller
Virtual Real Estate Bootcamp – Part 2: Domain
Virtual Real Estate Bootcamp – Part 3: Content
Virtual Real Estate Bootcamp – Part 4: Traffic
Virtual Real Estate Bootcamp – Part 5: Revenue
Virtual Real Estate Bootcamp – Part 6: SEO
Virtual Real Estate Bootcamp – Part 7: Price