TAS 651: Buying a Business vs Building Your Own (Pros and Cons)

Have you ever thought of buying an existing ecommerce business as a starting point or to expand your current brand? Do you want to eventually sell the ecommerce business you are currently growing? On this episode of The Amazing Seller, you’ll hear from Scott as he breaks down the pros and cons of building your own business vs. buying an already established ecommerce business. If you’ve been wondering about the options for selling a business, this is the episode for you! Have pen and paper ready; you don’t want to miss a minute of this informative episode!

Why you should buy an existing ecommerce brand.

There are a ton of risks and challenges when it comes to purchasing an already established ecommerce brand but what about the positive aspects? According to Scott, there are many sellers out there who are putting in the time and effort to grow a brand with the intent to sell it. Here are the advantages of buying an existing ecommerce brand.

• You get to shortcut the brand building process.
• Instantly you get an established sales history.
• You get a built out product suite with connections to suppliers.
• You’ll have turnkey access to a website, email list, and social media channels.

To hear Scott expand on all the benefits of purchasing an established ecommerce brand, make sure to listen to this episode of The Amazing Seller!

The drawbacks of buying an existing ecommerce brand.

If there were no drawbacks to purchasing an already established ecommerce brand, everyone would be doing it! The truth is, by opting for an established brand, you are paying for the hard work and labor someone else poured into the brand. Here are the negative aspects to consider when it comes to buying an ecommerce brand.

• The purchase price is going to be high, likely $100,000 or more.
• You are exposing yourself to risk. The money you use to purchase the brand is tied up.
• The brand could hit a ceiling after you purchase it.
• There could be elements of the brand that aren’t visible before purchase.

Make sure to catch this full episode of The Amazing Seller as Scott expands on these drawbacks and much more!

Look for ways to expand and grow the brand!

What is the best case scenario for purchasing an ecommerce brand? Ideally, you’ll find a brand for sale that is underpriced or underdeveloped but with a ton of potential. Sellers like you need to put in the time and do your homework, so you know how ecommerce brands operate. Once you’ve done your research, you’ll have a better idea of what to look for, and you’ll have a reasonable expectation on how to grow the brand. If you are inching closer to the idea of purchasing an ecommerce brand instead of building one from scratch, you need to listen to this episode of The Amazing Seller!

OUTLINE OF THIS EPISODE OF THE AMAZING SELLER

• [0:03] Scott’s introduction to this episode of the podcast!
• [4:45] The pros of buying an existing brand.
• [13:20] Look for ways you can advance the brand you want to purchase.
• [16:00] The cons of purchasing an established brand.
• [21:00] Should you buy a stake in a brand to expand your brand?
• [27:00] Closing thoughts from Scott.

RESOURCES MENTIONED IN THIS EPISODE

• www.ecombizbook.com
• www.theamazingseller.com/270
• Quiet Light Brokerage
• www.theamazingseller.com/live