By now we are all aware that nearly every business needs some sort of an online presence. But a website can be so much more than just a landing page for your customers. It can be a stable source of revenue that a start-up can use to not only build its presence but also its revenue streams. Jock Purtle, from Digital Exits, looks at why buying a website is often the best thing a start-up can do.
Buying a profitable website can bring in a constant and steady stream of revenue from a new source. It may allow you to tap into new markets you’ve been previously unable to reach, but it will do so while bringing money into your company. When buying a website, it won’t be hard to get a hold of its current revenue figures. Study them hard and figure out how sustainable they are going to be. If it looks like you will be able to recoup your investment while also adding to the business without having to dedicate too many more resources, you may have stumbled onto something that can be a great boon to your business. Of course, everything will require some work. There is no magic bullet here. But existing websites offer great promise in the future if they can demonstrate sustainable revenues and solid growth prospects. Also, should you succeed in growing this website further, you can sell it down the road, creating even more capital for you to invest in your business.
Next to money, time is the most important resource for any startup. It is vital you are making the most of every second you spend working on the company so that you can continue to grow and stay alive. Buying a website is a great move because you can find a turnkey solution that will not drain your time. You will have to shop around for something that is having success, and you may have to pay a bit more, but this sacrifice is ultimately well worth it. When you consider the alternative—building a website from scratch—buying a website makes complete sense. Web development and content creation is incredibly time-consuming, and if you don’t have the personnel already, you’ll have to outsource it, which can become a money pit. Take the time to find something that won’t distract too much from your current projects and you’ll be saving yourself a major headache down the road.
One of the major goals for any startup is building a brand. With such fierce competition out there, it is important that you as a small company find a way to stand out from the crowd. By acquiring an already existing website with a decent following, you can do just that. Those that are already familiar with the previous brand will now associate you with it, exposing you to a whole new customer base and giving you a chance to maximize your branding strategies.
As a startup, it’s tempting to want to try and do everything on your own from scratch. But this is often not the best way. Buying an already existing website is a great way to take advantage of something already going well so that you can add additional credibility and resources to your business, helping it along in the growth process.
Author bio: Jock Purtle is an entrepreneur, business broker and founder of Digitalexits. He specializes in appraising digital businesses and matching sellers with the right buyer for their site.