the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Funding: What are different options for raising funds to buy an established online business?
SN
SN
Shaun Nestor, Content Marketing Advisor & Agency Consultant answered:

Hi there,

The options are the same as buying many traditional businesses.

You can obviously use your own funds, raise funds from friends and family, use personal lines of credit, crowdfunding/investment or seek personal loans from financial institutions.

Any wise investor in your venture should require -- and you should have prepared -- financials for the online business you are purchasing. Does the online brand have tangible assets? Inventory? Existing sales/AR? What about long-term purchase orders or contracts?

Where I see most entrepreneurs stumble is buying too much into "blue sky" value, that is, believing the sellers opinion of what future value the brand/company may have. You have to take that into consideration, but it should not be "the" deciding factor. If the business is truly a cash cow, as many buyers would want you to believe, why are they selling it? Do you see opportunity for growth? What skill set or leverage do you have that will accelerate that growth or expand the market of your acquisition?

Again, funding options are generally the same between traditional businesses and online businesses. Investors/lenders will require the same due diligence and financials to establish an assess the level of risk.

All the best,
-Shaun

Talk to Shaun Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.