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An Overview of Today's Internet Business
Opportunity Market

By: Richard Parker: President of The Business For Sale Buyer Resource Center and author of How To Buy A Good Online Business At A Great Price ©

All indicators point to continued growth within the Internet business for sale segment. There are usually three independent factors that contribute to an increase in people looking to buy an online business. Lower interest rates play a significant role by allowing individuals to finance their website purchase at attractive rates. Next, the job market: When jobs are plentiful, people first think about switching companies rather than considering self-employment. When jobs are scarce, owning an Internet business becomes a viable option. The final factor is the financial market. When the stock market is stable or increasing, and CD rates reasonably attractive, most people are comfortable in allowing their money to grow from these investments. However, recent years have shown that the market is not for amateurs, and so average people look to other vehicles to build their wealth, hence, self employment.

Whenever one of these three areas is in disarray, the online business opportunity market enjoys a growth spurt. Right now, all three are in flux, so the numbers of people looking to take control of their own destiny is booming.

Many people dream of owning an automated website business. For most, there are two possible options that make sense: starting a website, or buying an existing online business. Both have their pros and cons, and the choice depends upon the specific needs, goals and expectations of each individual. 

Website Start Ups

I’ve always believed that most everyone should start at least one business from scratch in his or her lifetime. It can be one of the most exhilarating and educational undertakings you will experience. Unfortunately, the chances for success are not very good in any business and even less so in a website. In fact, over 80% of all start-ups fail in the first three years and 80% of those that make it, fail in the next two years. That means that 96% fail overall; quite an expensive education isn’t it?

The biggest culprit contributing to failure is a lack of capital. I have started several businesses and I’ve now come to expect the following:

  • Revenue comes in about half as quickly as originally expected.
  • Expenses are usually much higher than anticipated.
  • The world is never as excited to buy my products/services as I thought they would.

Of course, many start-ups survive, and thrive, way beyond expectations. Certainly, I’ve had some blockbuster experiences, but several dismal failures. If you’re going to start a business, it is critical that you not only plan properly, but you are certain that you have the financial resources to endure a slower than expected period to profitability.

Existing Websites

Buying an ongoing website will provide you with benefits that are not available in a start up . With an existing online business, you’ll have

  • Historical financial information
  • A built in infrastructure (employees, customers, suppliers)
  • Immediate cash flow

While this sounds wonderful, there may very well be a premium for these added benefits. However, when it comes to investing your money, the objective is to make a prudent long-term decision and an existing website offers you the largest potential upside. Plus, you’ll generally negotiate directly with the seller and so you can construct a creative deal that will allow you to acquire the online business for less than you would expect.

Regardless of what road you choose to purse, the most important thing is that you do something! Everyone knows that unless you have a senior position within a company, you simply cannot get rich working for someone else. Even if you’re an executive with an attractive compensation package, you’re one bad quarter away from unemployment.

For many, owning an online business business is a dream. For some, it will become reality. Your fate is in your hands. Whether you choose a start-up or existing Internet business, it can be done. It’s up to you. Currently, the market is in your favor and the time is right for you to finally put yourself in a position to be your own boss.

This article represents a fraction of what you’ll cover on this topic in How To Buy A Good Online Business At A Great Price© - the most widely used reference resource and strategy guide for anyone thinking about buying an online business. Read a detailed listing of what you'll learn.

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