Due Diligence is Necessary When You Buy a Website :: Sell Websites Buy Websites

Due Diligence is Necessary When You Buy a Website Reprinted with permission of VotanWeb.com According to industry statistics, nine out of ten people who begin the search to buy a website never complete a transaction. While there are many reasons for this dismal figure, a lot has to do with the inability of people to "pull the trigger". This gun-shy reaction is due to uncertainty: if you have not gathered the right information or failed to investigate the website thoroughly you will not be 100% certain of what to do. Due diligence is probably the most critical stage in the website buying process. Many prospective buyers incorrectly identify this period as strictly a financial review. However, an effective due diligence goes far beyond the numbers. Due diligence is the complete investigation and review of a website. One of the keys to buying a good website comes from your ability to learn the intimate details of it. It is imperative that you identify the strengths, weaknesses, growth opportunities and areas of concern with each website. If you don't do a flawless job of gathering information, you will not be able to pull the trigger and complete the transaction since you'll be uncertain about too many components of the website. The investigation process must begin the moment a website becomes of interest. Your goal is to be certain that you uncover everything about any website before you buy it. You don't have to communicate with the seller for your research to begin. The Internet is an incredible tool that will allow you to investigate the website, the industry, the competition, the marketing, the suppliers, and on and on. The importance of beginning your investigation early cannot be emphasized strongly enough. This way, you'll position yourself to ask the seller the right questions. Once you progress to the stage of an accepted offer, you will commence the financial due diligence. This period usually lasts 10-30 days. This is the time when you'll have access to all of the website’s books and records. Once you begin looking at a particular website, you'll find a thousand things crossing your mind regarding the acquisition. Keep a notepad handy at all times and log your thoughts. Don't trust your memory; these little things are the ones that can and will come back to haunt you down the road. Begin to put together your checklist of what you need to investigate and how you're going to do it along with the materials you require from the seller to accomplish it. Due Diligence is Necessary When You Buy a Website :: Sell Websites Buy Websites Due Diligence is Necessary When You Buy a Website Reprinted with permission of VotanWeb.com According to industry statistics, nine out of ten people who begin the search to buy a website never complete a transaction. While there are many reasons for this dismal figure, a lot has to do with the inability of people to "pull the trigger". This gun-shy reaction is due to uncertainty: if you have not gathered the right information or failed to investigate the website thoroughly you will not be 100% certain of what to do. Due diligence is probably the most critical stage in the website buying process. Many prospective buyers incorrectly identify this period as strictly a financial review. However, an effective due diligence goes far beyond the numbers. Due diligence is the complete investigation and review of a website. One of the keys to buying a good website comes from your ability to learn the intimate details of it. It is imperative that you identify the strengths, weaknesses, growth opportunities and areas of concern with each website. If you don't do a flawless job of gathering information, you will not be able to pull the trigger and complete the transaction since you'll be uncertain about too many components of the website. The investigation process must begin the moment a website becomes of interest. Your goal is to be certain that you uncover everything about any website before you buy it. You don't have to communicate with the seller for your research to begin. The Internet is an incredible tool that will allow you to investigate the website, the industry, the competition, the marketing, the suppliers, and on and on. The importance of beginning your investigation early cannot be emphasized strongly enough. This way, you'll position yourself to ask the seller the right questions. Once you progress to the stage of an accepted offer, you will commence the financial due diligence. This period usually lasts 10-30 days. This is the time when you'll have access to all of the website’s books and records. Once you begin looking at a particular website, you'll find a thousand things crossing your mind regarding the acquisition. Keep a notepad handy at all times and log your thoughts. Don't trust your memory; these little things are the ones that can and will come back to haunt you down the road. Begin to put together your checklist of what you need to investigate and how you're going to do it along with the materials you require from the seller to accomplish it.