[Case Study] Buying A Business Making $2600 p/mth Online Vs Acquiring A Location Based Business with Fred
What do you think is better? Running an online business or a local based business? Let’s find out from Fred’s personal experience. In this exciting episode, Jaryd Krause is joined by Fred, who is a Buying Online Business graduate who had previously wanted to buy a traditional brick and mortar business to get out of his job as a plant manager. But he realized that those businesses would cost him 50 hours a week so he turned to buying an online business and bought a great content website that continues to grow. They have discussed his background in work and his decision to buy an online business rather than a traditional business. How long did it take him to do due diligence? How much due diligence did it take him to buy a business? And how long did it take him? We also talked about the business he bought, the price, multiples, and his negotiation strategy. What is he doing to grow the site? And his piece of advice for people looking at buying a business. Are you ready to start your first online business? Then, don’t miss this episode! Check out the video to learn more. Episode Highlights 03:47 Why did Fred decide to buy an online business? 11:25 How did Fred discover the online space? 18:20 Education can minimize risks! 29:00 How much time did Fred spend before making a business purchase? 37:19 What’s the hardest part of buying an online business? Key Takeaways ➥ Fred learned that single-source dependency can be a significant risk. It took him a few due diligence attempts to fully grasp its importance. For example, if a website relies heavily on one source of income or one key person, it can become highly vulnerable to changes in that source. Fred shared examples of cases he encountered. These experiences led him to realize the importance of assessing and mitigating single-source dependency when evaluating online business opportunities. ➥ Jaryd discussed the emotional attachment that many aspiring business buyers develop when evaluating potential purchases. He emphasized the importance of educating oneself and developing the ability to assess businesses independently. In addition, Fred acknowledged that making decisions based solely on external advice can diminish personal accountability and hinder one's ability to handle the business effectively. ➥ Jaryd emphasizes that aspiring buyers need to recognize that due diligence takes time, sometimes longer than expected, and it's essential to set realistic expectations. For example, Fred took 12 hours on his first due diligence, but for others it could be a few weeks or a month. About The Guest Fred is a Buying Online Business graduate who had previously wanted to buy a traditional brick and mortar business to get out of his job as a plant manager. But he realized that those businesses would cost him 50 hours a week so he turned to buying an online business and bought a great content website that continues to grow! Resource Links ➥ Sell your business to us here - https://www.buyingonlinebusinesses.co/sellyourbusiness ➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com ➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/ ➥ Flippa (Website Broker) - https://bit.ly/3WYX0Ve ➥ Site Ground (Website Hosting) - https://bit.ly/3JBEC1u ➥ BOB SEO service - https://buyingonlinebusinesses.com/seo-services/ *This post may contain affiliate links, so we may earn a small commission when you make a purchase through links on our site/posts at no additional cost to you.See omnystudio.com/listener for privacy information.