Seeking advice on selling online software business

[Silverwood]

Hello there,

I am looking to sell my online business.

I’m just wondering if any of you here have advice or tips on how and where to sell a small online business successfully?

And how do I value my online business? Is 18x monthly earnings a fair price? (btw, average montly profit ~3k)

Thank you in advance for your advice.

 

[Chris Ashdown]

You give no information on your business so nobody can help you, what we can say is the online "We can sell your business" are a rip off and tie you to a poor contract

 

[Paul Kelly ICHYB]

18x monthly earnings a fair price?

Where did you get that from? Why not 24x or 6x?

average montly profit ~3k

Is that after your salary?

 

[Paul Norman]

The answer is complex.

The blunt starting point is that most small businesses have no resale value at all.

The other thing is that the multiplier methods of valuing a business that are rattling around are largely not how it works.

Your business value is based upon two things, being over simplistic:

1. The value of the assets
2. The value a potential purchaser is willing to pay for future profit potential.


Other factors come into play in certain situations, for example I might pay a premium to grab some market share. I might, which is not the same as I would.

If I paid 3 times your annual net profit (big posts on the definition of that will follow), then I will probably break even on the deal in 3 years, unless I can believe in my ability to massively grow your business. That is a long term gig. In many years of buying and selling businesses that is at the top end of the numbers, although there are examples of people paying more.

 

[Silverwood]

You give no information on your business so nobody can help you, what we can say is the online "We can sell your business" are a rip off and tie you to a poor contract

software online business, i.e. selling digital product (script) to site owners

 

[fisicx]

software online business, i.e. selling digital product (script) to site owners

Is it all automated?

Will the new owner need to be a developer?

Is the profit after you have taken your wages?

Are you a limited company?

 

[Mark T Jones]

There is no straight or simple answer, so I'll pitch in with 'it's worth what someone will pay'


- What will a buyer actually be buying?

- to what extent is the business dependent on you?

- is there any kind of protection or IP?

- Is there recurring income, contracts etc?

- What's to prevent md from just setting up a clone business?

 

[Silverwood]

Is it all automated?
- fully automated

Will the new owner need to be a developer?
- not necessary

Is the profit after you have taken your wages?
- my salary is when clients request additional customization of their site, I did not add these earnings

Of course, there is a system of protection and binding to a license key for each client. Clients often extend the support period/access to updates.

The buyer receives own online business in a box: a website, own control & client panels, all clients, script sources, and so on.

 

[Clinton]

About 20 years ago, I owned businesses like yours selling scripts (Chameleon Flash, SWF Maestro etc, some of which sadly no longer exist). I have some experience in this, and in selling businesses.

Is it all automated?
- fully automated

No, it's not.

Will the new owner need to be a developer?
- not necessary

Yes, it's necessary. Or they need to hire one (which could wipe out all the profit).

Once you get honest (and realistic) about your business, you improve your chances of successfully selling.

 

[fisicx]

Is it all automated?
- fully automated

That means I can leave it running and just collect the cash. A totally passive income. My mum could do it.

Will the new owner need to be a developer?
- not necessary

Whose does all the customisation, security updates, bug fixing and maintenance?

The buyer receives own online business in a box: a website, own control & client panels, all clients, script sources, and so on.

Do they need their own hosting? What happens if their install fails?

I'm interested in the business but there are a few red flags.

Can you send me the details in a PM.

 

[Paul Kelly ICHYB]

Is the profit after you have taken your wages?
- my salary is when clients request additional customization of their site, I did not add these earnings

So, in the business itself, there isn't any profit?

 

[Silverwood]

I can repeat - everything is 100% automated, the client goes to the site, buys a license, automatically after payment receives a login / password from the client panel where he finds his generated license key and downloads the product and installs it using the installer.

Next, the question was - does the owner need to know programming. I repeat - no.

Does he need to hire a developer in the future for a short time to release new versions (if necessary) - yes, of course, its digital product. But this is optional since the current version is stable and works without problems.

Does he need to periodically respond to emails with questions from some potential clients? Yes, of course, as in any business.

 

[antropy]

Let's have a link to the website for it?

Paul.

 

[Silverwood]

Let's have a link to the website for it?

Paul.

I'm also considering selling a few of my other small ready-made software businesses in different niches: blockchain, eCommerce.

If someone is seriously interested (not just curious), and have the necessary budget (at least £16k for separate business project) - send me a PM with your email and I'll send you detailed information about my projects and links. But serious inquiries only please!

 

[Silverwood]

one business project sold.
two ready made business projects left

 

[antropy]

Well, I've bought digital assets for sale before and made a profit, but I'm only curious at this point.

Paul.

 

[Silverwood]

Well, I've bought digital assets for sale before and made a profit, but I'm only curious at this point.

Paul.

Got it, Paul. No problem.