A lot of business enthusiasts and tech geeks are getting involved in forming their own e-commerce business where they can sell products or services and make a profit. Maybe out of passion, you have developed a website with an idea of starting a business from home. After a point of time, you might think to pass your baby on a new hand may be to fund a new project.
The first course of action will be looking for a good marketplace to sell your website. However, the next step can be a challenging part as you will have to evaluate your own business. It is an essential aspect to evaluate your business website and find out how much is your website worth or it can be sold for.
This article will guide you through have a clear understanding of how you can find out the worth of your website and how can sell your website for a higher value.
How should the SELLER evaluate the website?
The website only makes value if it has potential to provide a good return on investment. The buyer will only invest in those websites that can make sales and offer better revenue.
You as a seller and the customer is a buyer will obviously have a different mindset about the website. The buyer who will be investing in your website might expect a quick payback and hence, he will decide the amount based on the risk.
For instance, a seller has evaluated the website in a way that he has invested $10,000 into website development, $5,000 for the domain and another $40,000 for the traffic generation, ads, etc. hence, it should be worth $55,000. This way of evaluation is absolutely wrong!
Each and every aspect comes under consideration while evaluating a website such as the development and maintenance cost of the website, domain fees, traffic, monthly sales and profit, the amount spent on promotion and ads, etc. Hence, the profit is something that gets evaluated, not the assets.
How will a BUYER evaluate the website?
Most of the buyers are willing to pay a higher amount of what the business is generating but it is determined by the amount of risk involved. The lesser is the risk, the higher amount will be spent by the buyer for a website.
Factors involved in evaluating a website:
• Consistency in earnings
• Business growth
• Automated systems
• Revenue streams
• Traffic and ranking
Here’s how you can maximize the value of your website:
1. Estimation and paperwork: It is necessary to have all your assets, profits and expenses calculated for a good reason of course! At any point of time while estimating, you may forget any of the figures to add accurately.
2. Simplify your routines and other processes: It is necessary to ensure all the processes are functioning excellently. It will be a great idea to cut down unnecessary expenses.
3. Try differentiating whatever you are offering: You will have to look for a way to differentiate your business from the other competitors. Try figuring out what makes you stand different and exclusive from other and showcase it to your buyers.
4. Organize your business: Your business should not lack behind in any terms, hence keep things organized so that it attracts more buyers. It’s a great idea to make your business more organized while fixing any kind of problems.