When you first start out looking for your first online business to buy it is quite an exciting time, though there are still so many things you need to consider. One of them is why you may want to actually avoid buying an online business and why.
Quite often the biggest mistakes are made because we chose not to avoid buying an online business that we maybe should have steered clear of as our first website investment. I know this because I myself made some mistakes on the first website I ever bought, I mean who didn’t right? It is the same when we first start anything in life, generally our first attempt doing anything new is a little stab in the dark no matter how much we have read. It’s putting these things into practice that is a whole new learning curve and can mean we make some mistakes along the way.
The best thing about my first website I bought is that I learnt from those mistakes so the next time I could avoid buying an online business that was not particularly right for me. Or, in saying that. Avoid buying an online business that was not a wise investment at all.
From these mistakes/lessons I have learnt, I want to share with you some of those things that I started to see which lead to me understand which website businesses to avoiding buying.
Of all the things you will learn about website investing, the most important is to stick to what you know, what you understand and what you feel deep down in your gut is right.
What I mean by this is. If you are looking at a website business to buy and conducting a whole lot of due diligence and there are either just a few things or an array of things you don’t understand and the seller can’t explain these to you. That is a clear sign you need to avoid buying that online business.
Make no mistake that just because you have spent either a little or a lot of time performing due diligence on a particular business. If what you have picked up doesn’t make sense to you or a few things don’t add up and you can’t understand why. It doesn’t mean that you should continue to go down the rabbit whole even further too.
Personally when I look at an online business I may possibly like to buy, if I see something I don’t understand or it doesn’t make sense to me I walk away immediately. Investing and business should not be complex at all, just like in life.
Though we like to have drama and unknowingly make our lives harder, those who live the happiest lives are those who live the simplest. Plus If I can’t understand some things about the business or how every little part of it works, how can I expect the customers to know?
To me the worst thing would be to buy a business that my customers can’t understand. If they can’t simply comprehend the product or service, how am I expected to sell to the customers and make money through the business? That is a recipe for disaster and certainly one of those businesses to avoid investing in.
Another key reason to avoid buying an online business is when you have valued the business for yourself and you know what it is truly worth, though the seller is asking far too much and won’t budge on price. If you have thoroughly performed a diligent valuation on the business, don’t for one second doubt your valuation and succumb to buying the business at a higher price than you know it is worth.
I know a lot of people may not like the man and if you can put your political opinion aside just for a moment. Donald Trump has one of the best quotes when it comes to investing and relevantly sums this post up very well. Which is – “Sometimes the best investments are the ones we don’t make”.
So for those of you who have spent a lot of time during due diligence on a business and either can’t seem to understand parts of the business, can’t budge the seller on a fairer price based on your calculations of it’s worth. Or are simply second guessing the overall performance or direction of the business into the future.
This is where you need to stop for a moment, walk away from all the due diligence and research to truly asses and view the website from the outside looking in. I like to do this after every business I thoroughly research where it helps me to make a more conscious decision on what the right decision is for me and my position in life at the time.
By doing this it could allow you to see that the website you have just assessed is something that is right for you. Alternatively, and especially when you are just starting out. This could help you to see you need to avoid buying an online business that does not particularly feel right for either one particular reason or various reasons.