Jaryd Krause Insights on Buying an Online Business

Getting Into Business – Jaryd Krause

• He took inspiration from people who were doing well with their businesses. Naively, he tried starting his own and failed a lot of times.
• He then turned to the Internet and realized that he could buy online businesses.
• He taught himself how SEO and digital marketing work.
• Eventually, people started to find out about what he does and came to him for help.

The Biggest Challenges in Figuring Out How Online Business Works

• He hated being a plumber and tried running away from it. More than that, he tried running away from his life.
• He traveled around the world from 6 to 12 months. After that, he realized that he needed to set a goal in line with his love of traveling.
• He first tried out travel blogging. Although he did make money, it was challenging. However, he learned more about how online business works.
• He set up a drop-shipping store that led him to his aha moment.
• If you’re going to invest in anything, you need to do your due diligence.

Buying an Online Business

• In business, what gets measured gets managed.
• Even if you work with a good broker, you still have to contact the seller to know about the finance and other information about a business.
• You can make an opportunity out of not knowing the numbers.
• He suggests not to spend less than $10,000 range because otherwise, you don’t get what you paid for.

Financing a Business

• You can get financing from a finance broker who will help you get it from a bank or a lender.
• You can also raise your capital.
• The collateral varies from different lenders.

Creative Deals When Buying an Online Business

• If you’re going for a no-money-down deal, you’re settling for a no-good business.
• “It’s better to buy a good business at a fair price instead of a good price.”
• He encourages creativity but not risky creative deals because you may end up with more hassle.
• The value of the business is dependent on the business model.

Opportunities in Buying an Online Business

• Sellers are prepared to take less money to give the business to an attractive buyer.
• It’s also dependent on how sellers think a buyer can flourish the online business.
• Buyers need to understand how to manage the business by numbers and delegation.

Recommendations for Entrepreneurs

• Website brokers enable you to see the numbers—its cost, how much it makes, its expenses, among other information. Brokers allow you to take a look at the business model.
• The next step is honing due diligence.
  
  

When Do Things Go Wrong ?

• People buy businesses when they haven’t verified the financials and looked at the merchant account and traffic.
• Buyers should have full responsibility when they decide to buy or invest
• in a business.

Online Business Niches

• There are some like real estate where they buy, renovate, grow, and flip the business.
• There’s a market where people use skills like marketing to attract potential clients.
• There is also a business niche where everything is prepaid and set up.
• Some sell personal blogs, and others have personal brands attached to the business.

The Way To Success

• Making cash through a business has a lower investment risk.
• Do less to make more; focus on what’s working and make it better.
• Don’t expect success overnight.
• Set goals and work towards them; pursue your passion.