What kind of people buy and sell on flippa.com? A complete Dive

Let’s talk about who sells on Flippa because the buyers are more than sellers and those are the ones that need to be protected first.

About sellers: Their mindset and why they sell –

Selling Fundamental –

Sellers are individual business owners, companies who sell their business at a multiple of the asset values or the revenue that they make per month. For example, let’s say a company makes 5000 dollars per month in profit so he has priced the selling price at 300k dollars, i.e., 5X multiple where X=12 months.

Why they sell –

The real reason why someone sells their business can be:

  1. The founder is old and wants to retire and sell the business to the next generation
  2. The founder realized that the market was going down and the business would crash in a couple of months or years so it was better to exit before the setback happens
  3. The founder is no longer interested in the niche and wants to start a new business
  4. The founder made enough money and wanted to focus more on his life than increasing wealth
  5. The business is faulty and the founder is portraying fake profits just to sell the business and make money

About Buyers –

Why buyers buy businesses or websites from Flippa –

The buyers usually buy a business incorporating two viewpoints either financial or interest-based decisions. Let us go through it in chunks:

  1. Buyers have some money to invest so look at businesses as a money-making machine on investment and think about generating ROI post buying the business.
  2. Buyers are looking to start a business with some credibility and a high success rate
  3. Buyers want to make money online

Advise to buyers

First of all, running someone else business needs a skillset that the founder has developed over the years. Thinking that you can replicate it is an exceptional thought. You will face 30 to 40 percent decline in revenue because of this sole reason. However, some founders are kind enough to send proper workflows and give adequate knowledge transfer sessions to teach you about the business workflow as much as possible. But, think logically it is next to impossible to completely make you understand 100% of the business and that is the scary part. Post you have paid the amount to transfer the business ownership, the founder will get sluggish in replying to your queries that you might have while operating the business. What I suggest is to buy a business that resonates with your skillset and do proper due diligence before buying it. Also, if you are unsure, it is recommended to get a prebuilt business from Sitefy. I am the founder of the company, we have deep insights about different businesses and charge a few hundred bucks to get the business setup and running. I hope we will be able to make a positive impact on your financial and impact growth. Best of luck for future endeavors.

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