Not all entrepreneurs start their business with the goal of selling it, but many of them eventually decide to do so for a number of reasons. The problem is, many successful business owners know their sales and traffic numbers, as well as their growth rate, but a vast majority of them have no clear idea of what potential buyers are looking for when buying an eCommerce business.
Here are five ways to increase the value of your eCommerce business and make it an attractive buy. Even if you’re not ready to sell your business yet, these tips will help you bring value to your e-store and prepare your business to be sold in the future.
Work on Your Traffic
Traffic is good, but qualified traffic is much better. So, to determine the traffic coming through your e-store, take some time to analyze your conversion stats: how many of your website visitors actually turn into customers? Where do they come from? Answers to these questions should help you figure out what traffic to pursue and which channels to focus on. Here are a few ideas to get more qualified traffic.
● Improve website navigation. Think about how you can make it easier for visitors to request information or complete a shopping cart while utilizing your website.
● Focus on social media marketing. Not only is social media marketing more affordable than traditional marketing, but it’s also highly measurable. This can help your business target the right audiences and see what methods of advertising are working.
● Create high-quality content. High quality content will help you rank higher in SERPs, engage users, and will compel them to return to your business for more.
● Send push notifications. Waiting for people to stumble across your website won’t be very effective in helping you gain customers. This is why sending push notifications containing informational alerts, about sales for example, is a great way to boost your CTR.
Make Your Brand Stand Out
Your brand is much more than just a logo; it’s how customers perceive you and why they choose to buy from you. Here are three quick tips to help you build a successful e-commerce brand.
● Know who you’re targeting. Ask yourself: who’s the ideal customer you’re trying to reach? Once you figure this out, you’ll be able to tailor your branding to appeal to your target customers. The more personalized and specific you get, the more your audience will trust you.
● Tell a story. Tell your customers what makes your brand unique because the better your customers know you, the easier it will be for them to trust you and become loyal customers.
● Don’t over-promise. One of the key elements of building brand loyalty is earning customers’ trust. In light of that, it is essential that you create realistic expectations in your customers’ minds that your business can meet, or even better, exceed.
Invest in Order Management Software
The reputation of your eCommerce business strongly depends on user experience, which is why as your eCommerce business grows, managing increased numbers of orders and customers is more important than ever. Customers should be able to place an order and receive it without any trouble. To do this, you can use order management software.
Having order management software will help you keep things organized and will help you run your e-store efficiently even during extremely busy sales periods (like holidays) without having to constantly keep an eye on your store.
Make Sure Your Records Are Straight
Record-keeping is probably the least exciting part of being an entrepreneur but it has to be done. Because, let’s face it, having good products and ideas is great, but you won’t get too far without the proper documentation and planning for your business.
Most potential buyers for your business will want to see solid record-keeping as this allows them to measure the performance of your eCommerce business, figure out how it has grown, and ascertain where it stands at the moment. If done right from the beginning, keeping your records straight will also enable you to detect what isn’t working within your operations so that you can make the necessary changes or adjustments. This both prolongs the life and success of your business.
The two most important record-keeping functions of every business are accounts and traffic. When it comes to traffic, you need to know the exact number of customers you have, where they are coming from, and how much they’re worth. Most eCommerce platforms offer traffic-monitoring tools for this purpose. You can also rely on Google Analytics or use a third-party solution that suits your business’s needs.
As far as accounting is concerned, it often takes the backseat, especially in the early startup stage. This can have a negative impact on your business’s success, as well as the possibility of selling it in the future. Ensure that all the invoices for the services you use are properly kept and organized as these will be crucial if you choose to sell your business.
Minimize Your Involvement
When looking at businesses, buyers typically look for companies that can run efficiently with minimal involvement from the owner. This is because nobody wants to buy a business that isn’t scalable without the direct involvement of the past owner.
As a business owner, you probably take up multiple roles and juggle a number of tasks to help out your employees; however, there will come a time when you need to start offloading and delegating tasks to avoid being sucked away from your true duties as an owner.
To begin, delegate any tasks that aren’t related to leading, product development, or strategic decisions to qualified individuals. The more technical and administrative tasks you’re able to take off of your own shoulders, the more valuable your business will become.
Hire Professionals to Value Your Business
Obtaining a reliable valuation for online businesses can be quite difficult. For that reason, business owners often work with business valuation specialists. A business valuation specialist will offer a detailed, comprehensive appraisal with thorough reporting and analysis, and will avoid the use of overly simplified 409A valuation calculators to help you obtain an objective estimate of your company’s value. To perform this valuation, the specialist has to undergo training and obtain certification from a specialized business valuation accredited organization, which means that they will be giving you accurate information about your business’ value.
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