How to value an online business? Valuing a internet business. Or 12 Tips of Online Business Valuation.

1. WHAT DOES YOUR ONLINE
BUSINESS WORTH?
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2. Valuation Of Online Businesses
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3. Customer Relationship
Businesses, especially franchises, tried to reduce the
importance of the customer relationship by introducing
systems and relying on brand and market strength
Traditionally, customers shopped with a business and
grew to know the business owner and its staff.
The value of the business was often bound up in the quality
of that relationship
The customers deals with the website. The experience is
replicated across all transactions. The importance of the
"person" is less relevant, just as it is in franchising
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4. Barriers to Entry
With a physical shop, there was cost of fit-out,
equipment, and stock to fill up the shop
In the online world it is more intangible assets that are
required and hence less need for upfront investment.
Length of time that the business has been established
is a key pointer to value
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5. Intellectual Property
Domain names become important.
If you are a real estate agent and you own the domain name
realestate.com.au, then you business is worth more than if
you are trading in your own name.
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6. Cost of Staff
In the physical world you were faced with a
alternative of employing younger staff or reducing
hours worked by regular staff if you wanted to cut
costs.
With an online business, there is more opportunity
to outsource work to people in other countries at a
fraction of the cost.
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7. Markets
If you are selling a service, it is very easy to provide that service anywhere in
the world and even with a product, you can ship it to another country if the
offering is unique, the price is right, and cost of freight is reasonable.
If you have already developed an international business when you come to sell
it, That adds to value because you don't have all your eggs in one basket. The
luxury of many markets adds to value.
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8. Competition
You want a site that has some competition, but not
too much.
You don’t want to be in a bidding war on Google for
keywords relevant to your product or service.
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9. Traffic to Site
Is there a solid history of growth in traffic to
the site?
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10. Automation
It’s no good having hundreds of people
working behind the scenes if you can
replace that with a level of automation.
Automation is like systems in
franchising, taking the weakness of
reliance on people out of the equation as
much as possible.
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11. How long established
Google likes sites that have been
around a long while
It helps with ranking
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12. How Well Supported
Is your site supported by other media and other
sites like Facebook, LinkedIn, Youtube, Twitter
etc?
This builds a foundation for the strength of the site
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13. Stickability
You want a product or service
that that is going to be around
for years to come.
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14. Google Ranking
If you have good content and
your presence on the net is
genuine and big, you will be
rewarded.
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15. For
Advice
On
Business
Valua3on
BCI
Business
Brokers
Tony
Arena
(Managing
Director)
3/1
Alexander
Street,
Crows
Nest,
NSW,
2065
Phone:
+61
2
94393399
Mobile:
+61
411888148
Thursday, 27 June 13

16. If
You
Want
To
Maximise
Your
Business
Visit:
www.bc.com.au/maximise.html
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17. For
More
Informa3on
On
Business
Valua3on
Visit
Our
Website:
www.valueabusiness.com.au
Thursday, 27 June 13