By flipping Businesses for Sale, you can make the most of your time. Increasingly, business owners are turning to business selling as a hobby, side hustle, or primary business. Find out how to flip and sell a business in a foreign market quickly while making a profit.
Reasons Why Selling a Business Instead of a House Is Better
Almost everyone flipped houses before the subprime mortgage crisis and the housing crash of 2008. In Europe and around the world, millions of investors were ruined by unscrupulous lenders signing off on bad loans because of stiff competition and a fevered demand for “easy” money.
Fortunately, selling a small business does not involve the same hazards as flipping a home, making it a better investment option for business owners. Find out why flipping businesses is better than flipping houses.
The business-selling game has so few real players that you’ll feel like a kid in a candy store. The process of flipping homes is easily understood even by entry-level wage earners, but few know how easily and quickly you can flip companies for huge profits. Since there is little competition in selling businesses, today is always the best day to jump in.
In comparison to flipping houses, selling your business online involves a more streamlined process. As a result, financial institutions are not required to act as middlemen and slow down the process. There is no better way to find the money you need than to negotiate with a seller who is willing to offer you seller financing.
Before you can flip a house, you must spend money on the house. The home is then sold for a profit. When you flip an already profitable business, you can use some of the early cash flow to make the changes you need before the sale. The immediate returns of selling a business make it safer and more stable than flipping houses.
Less red tape
Regulations concerning housing, escrows, and bank loans are burdensome. There are a few dozen things that can go wrong when flipping a house. Most things that happen after the initial purchase and before the final sale are controlled by business flippers. The less red tape you have to deal with, the fewer surprises you have to deal with when investing.
The best thing about selling small businesses is how rewarding it can be. The profit potential of flipping ventures is greater since company valuations are wider than home prices. Business valuations don’t seem to have a floor or ceiling when buying and selling a business for a quick profit.
How to Find, Fix, and Flip a Business for Sale in Seven Steps
Let’s discuss how to buy and sell a company for a profit now that you know why it makes sense to buy and sell a business. In order to succeed, you need planning, discernment, perseverance, money, and expertise. You will become familiar with the flipping process after completing a few flips. Follow these seven steps to find, buy, fix, and sell a business.
Step 1: Create a Due Diligence Checklist
It is important to create a game plan before registering with an online marketplace for selling businesses. Once you begin viewing companies for sale, create a due diligence checklist to keep you on track. A potential target business should be checked for the following:
- Model of business
- Quality of content
- The backlink profile
- The trends in traffic
- Strength of the competition
- Health financials
- Viability of niches
- A user’s experience
- Quality of products
- Resources humaines
- Permits and licenses
According to Eurostat, the wealth generated by millions of European enterprises in various industries in 2020 was 6,557 billion euros. The European market is a great place to buy and sell companies if you’re planning to do so. Businesses that want to succeed in this market should offer their services in multiple languages since many Europeans are bilingual.
The official language of Italy, Switzerland, San Marino, and the Vatican is Italian. There are 67 million native Italian speakers and over 13 million second language speakers on the EU market. You may need a certified translator to translate documents from English to Italian. This is because it is located in the mentioned countries where Italian is the official language. The Italian consulate will then notarize it and apostille it.
Step 2: Find businesses for sale
Once you have a plan for evaluating target companies for sale, register with some of the best online marketplaces for selling my business online and start your search. Due diligence can begin as soon as you encounter potential target companies during your search. The following are some of the most popular online marketplaces where flippers can find a business for sale:
- Shopify Exchange
- Empire Flippers
- Digital exits
- FE International
- Side projectors
Step 3: Raise funds.
You will need funding to complete a business sale after finding a target business online. It is necessary to raise funds in various ways depending on the specific circumstances surrounding the proposed transaction when selling a business. Raising funds for business acquisitions can be done in a variety of ways, including:
- Loaning money to a bank
- Investing in venture capital
- Online crowdfunding
- Getting a loan from a family member or friend
- Purchasing directly from the seller and financing it directly
Step 4: Acquire Your Target Company
Once you have the money, you can move forward with the acquisition of your target company. It is important to keep in mind that you usually don’t have to pay for the entire business up front. Your purchase agreement can be structured in various ways, such as making payments over time or providing earnouts to the seller.
Step 5: Fix Your New Business
Now that you own the business you want to flip, it’s time to take advantage of the opportunity to increase revenues or cut costs. It depends on the inner workings of your new business what you need to fix before the sale. Business flippers typically employ the following fixes to turn a profit:
- Improve SEO
- Fine-tuning conversion funnels
- Updated prices
- Holding special sales events
- Developing an email list
- Add monetization methods
Step 6: Create a Sale Listing for Your New Business
It is possible to relist the business you purchased only weeks or months ago once you have established a positive, sustainable trend in revenue or profit. The same online business marketplace where you purchased your company can be used to list your company for sale. You wait impatiently for your first hit after listing your business.
Step 7: Close the deal.
The majority of the time, your first contact with a potential buyer will not result in a sale. You should be able to close a deal within a matter of months if you are willing to work with interested parties. An experienced business broker can help you find a buyer if you are having trouble finding one.
By identifying opportunities created by market forces, new regulations, or geopolitical events, you can find businesses to flip. You can find companies in your target industry by logging into an online, global business marketplace. Perform due diligence on a short list of companies.
When you evaluate the target company accurately, flipping a business can be profitable. Flipping online businesses with high traffic and poor conversion rates is one of the easiest things you can do.
Profitable businesses with below-average digital marketing practices can also be cherry-picked. As long as you fix something significant about the target company, you can almost always flip it for a profit.
The value of a business for sale can be determined in a few different ways. The following are seven popular methods of valuing a business:
Looking at the balance sheet
Perform a discounted cash flow analysis
Based on the price-to-earnings ratio of the industry
Analyzing the business’ location
Determine the business’ enterprise value
Making the business more profitable by applying a growing perpetuity formula
If you look in several different places at once, you might find an existing business you want to buy. Existing businesses can be found in the following seven places:
Brokerage sites like Flippa, Empire Flippers, and BizBuySell
Regional business brokers
Local business attorneys
Nationwide accounting agencies
Venture capital firms
First time flippers will experience a learning curve and encounter common pitfalls when flipping their first business. Nevertheless, after flipping a business once or twice, things speed up at every stage as you become familiar with the process. Flipping companies for fun may even become a habit after several flips.