- Digital Acquisition Club
- Posts
- When you Buy your First Internet Business, Don't Change Anything!
When you Buy your First Internet Business, Don't Change Anything!
How to Make Your Money Back Safely
Michael Freedman
August 15, 2024
Introduction
Are you about to dive into the world of internet business ownership? Hold on! Before you start making changes, there's one crucial rule you need to know that could make or break your success.
Imagine this: You've just invested a significant amount of money into a thriving online business. The previous owner hands you the keys, and suddenly, you're bursting with ideas to "improve" things. But here's the twist - making immediate changes could be the biggest mistake you'll ever make.
Why? Because 90% of startups fail, and you didn't buy a startup. You bought a success story.
Here's what you really want:
Immediate Profits: Unlike startups that can take years to become profitable, your newly acquired business is already generating revenue. Don't risk that cash flow!
Expert Knowledge: You've just bought a masterclass in running a successful online business. The previous owner's strategies are gold - learn them before you even think about changing them.
Proven Success: Your business has already beaten the odds. It's part of the elite 10% that survived and thrived. Why mess with a winning formula?
If you actually want to see success, especially if you are new to this realm, the best advice is simple: don’t change anything!
Startups have a failure rate of 90%
When you buy an established internet business, you sidestep many of these risks. The business has already proven its viability in the market, has a customer base, employees, functional operations and procedures, marketing, and generates revenue. By maintaining the existing operations initially, you ensure that you are not disrupting the delicate balance that has allowed the business to succeed where so many others have failed.
Tips, tactics and value delivered to your inbox:
You want immediate profits
One of the primary reasons for buying an established internet business is the immediate cash flow. Unlike startups that can take years to become profitable, a well-established business provides an instant revenue stream. For heaven’s sake, atleast make most of your investment back before tinkering with success.
Example: A client of mine, who was an experienced brick and mortar business owner but first-time digital co operator, purchased a successful ecommerce store and immediately altered the email campaigns and website design. The result was a significant decline in sales, turning a profitable business into a struggling one in a matter of weeks. By preserving the existing system, you avoid such pitfalls and ensure that the business continues to generate profits. You have no idea the ramifications of making inexperienced changes.
Buying a successful business allows you to learn from an expert!
Buying a business comes with expert training. Somehow, new business owners often forget this completely. When you purchase a successful internet business, you gain access to the knowledge and strategies that made it thrive. This is an invaluable learning opportunity, especially for newcomers to the digital world. The existing owner’s strategies, marketing techniques, and customer engagement practices are all part of the package.
By observing these established processes and learning from the seller who made it successful, you equip yourself with the knowledge and experience needed to run the business effectively. Rushing to change things without this understanding can lead to costly mistakes.
Advice: Arrange as long of a training period as possible with the seller. You want as much mentoring to be included in the purchase price as possible. All transactions include a period of training and support from the seller. Typically this is a couple of weeks of daily meetings, and 30-60 days of weekly calls. Use this time to learn as much as possible about the business’s operations and strategies.
Gif by Explainly on Giphy
So, before you go changing anything, remember these points:
Understanding the Baseline
When you take over an internet business, it’s essential to understand its current performance metrics. This baseline helps you evaluate what’s working and what might need tweaking later on. Jumping in and making immediate changes to key components such as ad campaigns, website design, or product pricing can disrupt the delicate balance that is maintaining the business’s revenue.
Learning from Existing Processes
Before making any changes, spend time learning how and why the current processes work. This includes studying customer behavior, analyzing sales data, and understanding the marketing strategies that have been successful. By taking a step back and observing, you can gain invaluable insights that will inform future decisions and changes. Spend at least four to six months operating the business as is. Use this period to gather data, understand customer interactions, and learn the business’s intricacies.
Avoiding Unnecessary Risks
Every change you make carries a risk. While some adjustments might lead to improvements, others could have unintended negative consequences. By holding off on making immediate changes, you minimize the risk of inadvertently harming the business’s performance. When you do decide to make a change, make one change at a time so there are no unnecessary variables. If your change doesn’t work, go immediately back.
Consulting with Experts
If you feel that changes are necessary, consult with experts before implementing them. Seek advice from previous owners, marketing specialists, or other professionals who understand the nuances of running an internet business. Their insights can help you make informed decisions and avoid costly mistakes.
Recommendation: Join industry forums, attend webinars, and network with other e-commerce business owners to gain knowledge and support.
The key to successfully operating your first internet business is patience. Resist the urge to make immediate changes and instead focus on understanding the existing systems and processes. Preserve the current customer experience, learn from established practices, and avoid unnecessary risks. By taking a measured approach, you’ll be in a much stronger position to make informed decisions that will drive sustainable growth for your business in the long term.
Want to learn more about successfully running your new internet business? Sign up for our newsletter where we dive deeper into strategies and more!