Buying an ecommerce business can be a brilliant move to build wealth, or have costly unintended consequences.
Between finding the right business, knowing what to look for when going through due diligence, and avoiding misinformation - buying an eCommerce business can be a lot to handle. We're giving you a crash course on how to do it.
Today’s show is a mashup of three episodes I’ve done with expert eCommerce entrepreneurs in this space - David Newell, Shakil Prasla, and Drew Sanocki. We talk about how to determine if you are the type of person who should buy or build, what a thorough due diligence process looks like, and the things to always investigate within a prospective company. We also breakdown the common pitfalls first-time buyers tend to experience and how to avoid them.
- 4:30 How to determine if you should buy or build an eCommerce site
- 7:27 Buying a business to cross-sell
- 9:29 The 6 key tenets to robust due diligence when buying a business
- 13:12 How to assess the quality of a business’ backlinks
- 16:23 Financials you should always assess as a buyer
- 19:23 Problem areas to investigate before buying a business
- 23:15 Technical and legal checklist items you shouldn’t forget
- 25:38 The biggest mistakes most first-time buyers make and how to avoid them
- 27:34 Leveraging SEO and content for growth
- 30:53 Income and age: Two essential criteria for evaluating a company
- 32:49 Buying a business on a bank loan
- 35:48 Five things to always look for when buying
- 39:04 The advice Shakil would have given himself when he was starting out
- 41:30 Shakil’s process for reviewing prospecting companies and getting them through due diligence
- 43:30 What Drew is most excited about when buying
- 46:15 Merger and acquisition opportunities that can help your brand
- 50:45 Uncovering your blind spots within the acquisition process
- 52:26 Boostrapping vs acquisition: Which is right for you and which comes first?
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