10b buying-and-selling-websites-jason-yelowitz
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POSITIONING FOR AN EXITPreparing your website for sale, even if you don’t plan to sell.
January 2014Affiliate Summit, Las Vegas, NV
Quiet Light Brokerage, Inc
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
WHY DO BUYERS BUY?
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Who Buys Websites?• Small private equity firms
• Small businesses that specialize in website acquisitions
• Individuals looking for a change in career and lifestyle
• Individuals drawing on savings, IRA’s, HELOCs, etc.
What are They Looking For?
ReturnOnInvestment
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Three Pillars of Value
Ongoing Stability
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Growth Prospects
Provability
$Value = Annual Profits x Multiple
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Ongoing Stability
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Potential Points of Failure
• Reliance on SEO, Amazon, SEM, etc.• Reliance on too few vendors• Reliance on too few customers• Reliance on unsustainable business
model• Reliance on unsustainable industry• Ignorance of changing trends,
competitive landscape
Buyers see the risks owners don’t see.
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Ongoing Stability
Differing Mindsets Between Buyers and Sellers• Sellers are wired to see what can go right.• Buyers are wired to see what can go wrong.• The market (what someone will pay for your
site) determines who’s correct.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
This is when we areusually contactedMONTHLY PROFIT
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Growth Prospects
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Jun-
09
Aug-0
9
Oct-0
9
Dec-0
9
Feb-
10
Apr-1
0
Jun-
10
Aug-1
0
Oct-1
0
Dec-1
0
Feb-
11
Apr-1
1
Jun-
11
Aug-1
1
Oct-1
1$0
$5,000
$10,000
$15,000
$20,000
$25,000
Profit History of Growth
How buyers will gauge expected ROI
• 2 Year history of growth• No recent slowdown• Owner-identified areas of growth
This is the time to sell
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Growth Prospects
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Plan for the uncontrollable
• Identify the natural areas of growth with the least risk
• Strategically pursue them• Be methodical with new growth
areas and plan them in sequence• Understand when you are getting to
a point where you no longer are interested in growing the company
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Provability
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Demonstrable proof beats fuzzy guess work.
• Clean records• 3rd Party verification• Google Analytics• Customer data• Three years of financial history• No intermingling of businesses/personal
You have complete control over the provability of your business.
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Provability
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Get Your Books in Order.
• Hire a good bookkeeper• Keep accrual vs. cash basis consistent• Keep personal data out of business records• Keep other businesses out of business
records• If you lie to the IRS, don’t expect a buyer to
take your word
Buyers will expect all this AND these strategies will help you run a better business.
Quiet Light Brokerage, Inc. QuietLightBrokerage.com
Provability
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Beyond Financials, Keep Track of Key Data Points
• Conversions
• Orders/Returns
• Repeat Customers
• Renewal Rates
• Time/revenue event
• Other data that applies to your
business
www.QuietLightBrokerage.com
To discuss the value of your website: