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Buying an online business?


Cabbe
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I'm trying to buy an online business.

 

I have been looking at several over the last couple of months.

 

I just want to try and run something small and simple on the side while I keep my day job.

 

But when I look, they all seem to be scams when I start to ask for tax papers and proof of income.

 

Do you guys have any ideas where I should look if I want to buy a small online business?

 

Thanks!

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Bizbuysell is the main site as I am sure you know.

 

I am very active in the process and I have never shown a tax return once. Never do this.....Far to much personal data to be spreading around.

 

Normally, you sign an NDA from a broker and you will get all the info you need. On the flip side the owner/sellers are where you may come across the scammers. I have definitely run into them as well but its fairly easy to sniff them out quickly. Best way to play the game is create a document that has about 5-7 solid intro questions about the business. Use this every time you find a listing you are interested in. True sellers will be happy to assist in answering things for you. After that, push for a phone call. 9 out of 10 people who aren't serious will never want to chat with you on the phone.

 

Oh I almost forgot, set up a disposable email address as to protect your identity until you get involved with a seller that is on the level.

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Bizbuysell is the main site as I am sure you know.

 

I am very active in the process and I have never shown a tax return once. Never do this.....Far to much personal data to be spreading around.

 

Normally, you sign an NDA from a broker and you will get all the info you need. On the flip side the owner/sellers are where you may come across the scammers. I have definitely run into them as well but its fairly easy to sniff them out quickly. Best way to play the game is create a document that has about 5-7 solid intro questions about the business. Use this every time you find a listing you are interested in. True sellers will be happy to assist in answering things for you. After that, push for a phone call. 9 out of 10 people who aren't serious will never want to chat with you on the phone.

 

Oh I almost forgot, set up a disposable email address as to protect your identity until you get involved with a seller that is on the level.

 

 

Very good points!

 

Most half-ass NDAs won't hold up, and aren't worth the paper they are printed on. Make sure you check that out thoroughly, before proceeding.

 

Just my .02.

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This seems to be my constant stumbling block. How can i make sure the earnings are correct if they won't show me any tax returns. I have dealt with NDA's but without tax returns, how can i trust just papers with claimed paypal payments and such. I myself could fake those in 5 minutes.

 

Im really reluctant to hand over thousands of dollars just on their word that its profitable.

 

I guess my broker is supposed to check out the businesses, but how much can I trust my broker?

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This seems to be my constant stumbling block. How can i make sure the earnings are correct if they won't show me any tax returns. I have dealt with NDA's but without tax returns, how can i trust just papers with claimed paypal payments and such. I myself could fake those in 5 minutes.

 

Im really reluctant to hand over thousands of dollars just on their word that its profitable.

 

I guess my broker is supposed to check out the businesses, but how much can I trust my broker?

 

 

That's the biggest risk you will take. Trusting all mentioned above. If they won't show business tax returns (personal not necessary), my advise....pass.

 

Shouldn't be an issue if there's "nothing to hide". I wouldn't hand over thousands of dollars without it. Just my opinion.

 

Either way you go, good luck!

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