Jun 112010
 

Internet Business Guide Review
A potential client recently asked me the state of SBA loans for buying an established website for sale.  My snappy answer was “good luck with that”.  Seriously, SBA loans to buy an Internet business are elusive.  Back in 2006, when things were good, banks had just begun warming up to exploring the possibility of financing these Internet acquisitions.Established Website For Sale

Current SBA loans, as of this writing, have a maximum 50% allowable for “goodwill” in the amount financed.  For most categories of Internet businesses, (e.g., publishing, drop shipping, passive income) it is hardly possible to make a meaningful financing.

The only category of Internet business where SBA “might” be possible is inventory based.  Most homes have sufficient space (e.g., garage, spare bedroom) to accommodate a modicum of inventory.  However, the owner of an inventory Internet business will need to set aside daily time to pull and pack shipments.  Also, a daily schedule of UPS/Fedex pickup and delivery, or a visit to the Post Office.  None of these activities are really desirable when what you seek is freedom for a daily routine.

There is one other solution; which I suggested to this potential client.  Look to buy an inventory based Internet business to have the potential for an SBA backed loan.  Find a category where your margins are better than the typical 17% SDE provided by this inventory category of Internet business.  With the extra margin you can afford to outsource fulfillment.  Fulfillment houses will intake your inventory; and pull and pack each day.  You will give up an average of 4% in gross profit that will go to paying the fulfillment house.

The established website for sale below does have potential for an SBA loan.  It will all be in the structuring of the transaction.  Such as allocating a large portion of the price to a consulting agreement, unsecured by the SBA loan.  Another example of the structure might contain a structuring of the inventory.  It might require the seller to buy excess inventory and have it structured in the financing.  With the horrible state of current 3rd party financing the seller will need to avail the buyer every opportunity in structuring the transaction to “get the deal done”.

Overview

Established Website For SaleEstablished Website For Sale – Cloth Diapers

Related

Internet Business Guide Listing #8000

Status: Off Market
Business Type: NAICS 464111
Business Category: Etailer
Business Name: NDA
Business Web Site: NDA
Asking Price: $800,000
Down Payment: $ Negotiable
Gross Sales: $700,000
Cash Flow (or SDE): $250,000
Asking Price As Multiple of Cash Flow 3.6
Year Established: 2000
FF&E: (included in the asking price) $20,000
Inventory: (included in the asking price) $50,000
Employees: 7
Absentee Owner: No

Have you identified the category of Internet Business acquisition that you desire, yet have not located it? Are you uncertain of the Internet Business that is your ideal acquisition candidate? Then you should consider an Acquisition Search!
Business Summary
Established Website For SaleThis established website for sale, 10 yr old Internet business is a leading manufacturer of cloth diapers and accessories in the country. Products are sold in several national retail stores and via 100+ baby stores nationwide. Business has a track record of solid growth with sales growing each year and is easily relocatable.

No previous industry knowledge is necessary as the business is very well organized with trained staff, training manuals and can be managed from anywhere. Due to the growing interest in green products and the savings cloth diapers offer to parents, the industry is experiencing double digit growth each year. The business employs 6 full time and 2 part time employees. A business manager, quality control supervisor and a production manager are in place to effectively run the operation.

This established website for sale enjoys a loyal brand following and an engaged audience that has helped it grow organically by word of mouth. This is an excellent opportunity to become a part of a recession-proof, growth industry with a business that has tremendous potential. The current owner is committed to a smooth transition and will offer some financing to a qualified buyer.

Facilities: Not An Internet Home Business Opportunity

Competition: High barrier to entry. The company is a market leader in several categories of products.

Growth: Huge Growth Potential!  The Cloth Diaper industry is growing rapidly. This established website for sale can expand by taking on wait listed retailers, advertising (the current owner does minimal) and by using social media tools. Additional products can be sold to the existing client based. Manufacting products overseas can dramatically increase profit margins.

Financing: Negotiable

Training: Up to 30 days or as needed.

Reason Selling: Owner wants to home school her kids and need more time.

Listed By: Owner

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Before you invest your savings to buy a business shouldn’t you first learn how to buy the right one?

Then the Buyer Advantage Service from Internet Business Guide is for you!

A recent client said, 12 months ago I was sitting exactly where you are now so I know how that feels! Today I am sitting very happily with my internet business which delivering my material needs and the ultimate in freedom to match. Don’s assistance was a big factor in getting me to this place.

To obtain Business Profiles please complete your Confidentiality Agreement; if it is not already on file with the Internet Business Guide.

For information on this Internet Business Opportunity, or more than 400 additional Internet Business Opportunities, contact Internet Business Broker Don Janke. With over 20 years Online/Internet business experience I can guide you to your ideal acquisition to make money online!

5 Answers You Want To Know Before Making An Offer

1. Which Seller to buy from to get the best price to value.
2. What the real visitor count is to a web site.
3. What to say to guarantee that the Seller will carry back a note.
4. Which one website has the absolute best Internet businesses for sale. (not Internet Business Guide ;)
5. An initial “due diligence” review of a website for sale of your choosing. Reserve Now!

Internet Business Opportunity | Off Market
How to use this information: You have been thinking about buying or starting your best home based Internet business. You have been thinking about make money online ways working at home. You will find below many home based business opportunity ideas. Use the information below to see what others have done to make money from home. The owners of the Internet Business Opportunities below are, or were, selling their successful business. Review what kind of business opportunity they started to gain insight into what work at home business idea might work for you to Make Money Online!

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