Many people around the world are considering starting a digital business, migrating a physical business to the digital world or buying online business. The decision raises the question of which is the best way forward: where to start and whether it is better to buy an existing online business or start one from scratch. Many questions arise when it comes to entering the digital market, but there is nothing better than starting a step-by-step plan. Therefore, below we focus on the main advantages of buying a mature digital business in terms of cost, time and risk, so that you can make a good decision:
1. Low Startup Costs
One of the initial hurdles to creating an online business is the cost of developing the platform itself. This process includes designing templates, creating multimedia content, establishing communication channels and the overall development of an online store. Often engineers, developers, graphic designers or content creators must also be hired to consolidate the website. After that, efforts should be directed to marketing and customer acquisition. By contrast, buying an existing digital business provides an established infrastructure, which translates into lower initial operating costs, you already have the entire interface working and beyond making a few logo, typography or design changes you won’t have to draw on additional resources.
According to Empire Flippers, while starting a business from scratch may require a smaller initial investment, it takes time for the business to start generating profits.
2. Immediate Cash Flow
One of the most exciting parts of a business is making sales. Unfortunately, when you’re starting from scratch, this moment can be a long time coming. One of the main advantages of acquiring an online business is the immediate generation of revenue. An established business already has a customer base, a sales history and valuable data on popular products or services. If you have a clothing store that you have to set up from scratch, you will have to wait many days for your customers to find out where your store is located, what kind of clothes you sell and what prices you charge before you make a sale. If you buy a space already set up, you will bring their customers with you.
Online Business Liftoff emphasizes that buying an operating business eliminates the waiting period for revenue, since the business is already generating revenue.
3. Established Customer Base
Customers are the heart of any business, and building a loyal customer base from scratch takes time, effort and resources. When you buy a digital business, you inherit an existing customer base, which simplifies the implementation of marketing strategies and the promotion of new products or services. Think that if you have your customers surprised, constantly informed about your brand, receiving good attention, they themselves will become your brand ambassadors and will let others know the advantages of your product. There is nothing better than a satisfied customer because… it will bring more customers!
Motion Invest points out that one of the main advantages of buying an established online business is to inherit web traffic and, in some cases, a solid reputation.
4. Proven Operational Processes
Established digital businesses have streamlined systems and processes in place, from inventory management to customer service. This reduces the learning curve and allows new owners to focus on e- commerce growth and business expansion. Think that you will be able to focus your time, efforts and resources on your customer, rather than on the operational development of your website, you will not be dealing with technical issues and platforms, instead your focus will be on providing the best products and services to your customers.
According to the CNCPA, acquiring an existing business means inheriting a track record of success and proven operational processes, which minimizes upfront risks and enables faster profitability.
5. Market Presence and Reputation
A company’s most valuable asset is its reputation, which can take years to build in the digital marketplace. By acquiring a company with a solid reputation, you can leverage its recognition in the marketplace to expand product offerings, create new promotions and forge new partnerships, ultimately resulting in increased online sales. Think that if a customer is looking for a product, they will have more confidence in buying from a website that has tradition and time in operation versus one that is newly opened. The trajectory and experience will be important for him, because it will give him the security that behind his purchase there is a team of professionals backing up his transaction and not some rookies improvising in a business.
6. Reduced Business Risk
Startups face high failure rates due to lack of experience, unfamiliarity with the necessary tools and market uncertainties. The time it takes for a company to learn from trial and error is very long, but these mistakes are almost always very costly. Each adjustment involves stopping sales, stopping production, delaying delivery of orders, etcetera. In contrast, purchasing from a digital company with a proven track record of success
Your focus will be 100% on serving the customer, providing a good shopping experience and always achieving the best profit margin.
7. Access to Data and Market Analysis
In the digital world, data is king. Companies that know how to use information effectively – for example, by analyzing customer behavior, sales trends and purchase frequency – can develop successful marketing strategies. Existing companies already possess this data, which makes decision-making easier and more accurate.
In addition, this data facilitates a more effective corporate due diligence process, assessing a company’s viability and growth potential prior to acquisition. There is one fundamental factor in data collection and that is TIME, and a company that has been in business for a long time will undoubtedly have more sources of data capture than a new one.
8. Integration of Digital Marketing Strategies
When you buy a digital company, you inherit existing marketing campaigns, including search engine optimization (SEO), pay-per-click advertising (PPC) and social media marketing. This provides a competitive advantage over new companies that must build their online presence from scratch. There is nothing more difficult at the moment than gaining space among so much digital content: social networks, search engines, content creators, all make a constant effort to position brands and only those that have been doing the task for a long time, are the ones that are in the TOP listings. You can benefit from the brand’s positioning by counting on the time it has been operating online.
This seamless transition allows these strategies to be optimized and scaled to increase website conversion rates and sales.
9. Flexibility in E-commerce Business Models
Digital companies offer various e-commerce business models, from product galleries and online catalogs to country-specific websites and participation in online marketplaces.
Acquiring an existing business allows you to evaluate which model has been most effective and adapt it to your needs and objectives, you won’t waste time doing testing, surveys, sampling or other techniques to find out what your audience likes or what kind of products they prefer. You are ready to make money!
10. Purchase Incentives and Customer Testimonials
Established companies often have effective purchase incentives and customer testimonials that are proven to increase website conversion rates. These assets are invaluable in maintaining and building consumer trust while supporting e-commerce growth. For a new brand, these elements can only be achieved over the medium to long term. Remember that what others say about you is the best advertising you can have, it is your customers’ genuine experiences and their sincere recommendations that make your brand gain value and expand faster.
Finally, it is important to keep in mind that while buying a digital company offers numerous advantages, proper transition planning is essential to the success of the integration. You should review legal, technology and data ownership issues closely, as you do not want to have problems with these items in the future. Additionally, it is very important to understand existing operational processes, maintain customer and employee relationships, and adapt marketing strategies as needed so that the business continues to operate successfully with minimal impact on sales. Finally, review many options before making the final decision, compare platforms, prices, development, design and user experience, because you do not want to be migrating from site to site constantly, think that this decision must be kept in the long term and that well managed will be a success for your business.
