QuickBooks Online is now integrated with Flippa

QuickBooks Online is now integrated with Flippa

With Flippa you can now connect your financial data. This can be done by uploading documentation or effective immediately, customers of QuickBooks can ‘one-click’ connect. Assuming your business is in a good operational state, there are two main determinants to a sale – price and financial health. As it relates to financial health, this is about giving a prospective buyer comfort in what they are acquiring. Think of it like buying a used car — one wouldn’t spend the money without first looking under the hood, viewing accident and incident reports, and taking it for a test drive. Viewing your financial data is analogous to taking a car out for a test drive.

Quickbooks is one of the leaders in this space and we are delighted to announce our integration. With this service, Flippa is making it easier to list and faster to sell.

 

So, how does it work?

 

  1. Start Selling with Flippa
  2. Merchandise your business
  3. Look out for the Quickbooks connection

 

Once you have connected the following will auto-populate:

  • Annualized Revenue and Cost data
  • Prior 3-month performance as a means to assess your current state of operation
  • A P&L covering the prior 12 month period

 

Why is Flippa doing this?


It’s quite simply the most important verification point when considering a business’s value. We know that businesses with access to verifiable financial records sell faster and are more trusted.

Flippa’s integration with Cloud accounting software is an industry first. Buyers can now benefit from increased transparency into financial verification to assess the performance and viability of a business prior to engaging in conversation with sellers. With this integration, sellers can now connect and reveal their financial information to buyers much faster, with less work.

Check out the video tutorial below for more information.

 

Seller interview – All My Friends Are Models

Seller interview – All My Friends Are Models

This week at Flippa, I caught up with Sasha Benz the owner of All My Friends Are Models, an online publication that is currently for sale on Flippa. In the video below Sasha talks about the power of the brand, the business’s success to date and how a publication like this makes money. We also touch on the opportunity for prospective buyers and how they could take this business to the next level. 

Get started with Amazon FBA by buying a ready made store

Get started with Amazon FBA by buying a ready made store

In the world of e-commerce, one company reigns supreme: Amazon. The world’s largest online retailer is the most popular online marketplace for consumers to find just about everything. However, Amazon’s success isn’t down to only itself, but the many 3rd party sellers who use the marketplace to sell their own products.

Many of these 3rd party sellers use the Amazon FBA (Fulfilment by Amazon) service in order to capitalize on the Amazon customer base and distribution network. Amazon FBA makes it easy to manage an online store on the platform. While setting up an FBA store is a simple way to get into e-commerce, the beginning stages are always the hardest. For that reason, many entrepreneurs are interested in buying an Amazon FBA store.

Setting Up FBA

To set up an FBA store the first step is to create a seller account. Once you have a seller account you can start sourcing products to sell on your store. You can connect with suppliers to buy your product from and get it private labeled with your own brand. Once you have your product manufactured and branded to your liking then you can send it to the Amazon FBA warehouse and Amazon will ship your product to anyone that purchases it from your product page on the Amazon website.

Why You Should Consider Buying an Amazon FBA Store

FBA makes owning and running an e-commerce store easy. However, there are some upfront costs which can be high if you don’t have a good product. This is why many entrepreneurs choose to buy an FBA store instead.

Easier Start

The hardest part of running an FBA business is finding and sourcing a profitable product. Buying an FBA store removes this problem as the seller has already done the groundwork of sourcing an initial product and selling it on Amazon. For someone just starting out with FBA, this is a great way to learn the platform without wasting money on products that turn out to be busts.

Focus on Expanding

With the initial groundwork of sourcing a product, supplier and getting everything into the FBA store already done then you only need to focus on maintaining those established channels. With some steady profits already available then you can focus on expanding the store by enhancing marketing, launching a website, and adding additional products among other things.

Once you’ve decided that you wish to buy an established store then the best place to go would be Flippa.com. Flippa makes buying an FBA store a simple process. You can browse through their collection of FBA stores where you can analyze store niche, profit margins and sale price. Once you’ve identified a store that you wish the purchase, the customer service team at Flippa is available to help with the process and answer any questions.

If you’ve always wanted to get into e-commerce or FBA but were unsure about what you needed then now is the perfect time to buy an FBA store through Flippa.

Due diligence checklist

Due diligence checklist

Revenue, Cost, Profit Claims

Flippa can only verify the numbers claimed and request that all sellers add proof of revenue for all businesses generating a profit. 

Websites / Apps:
Read-only access or video walkthrough of revenue analytics, Admob, or eCommerce reports. Always ask for any analytics that may be associated with the account.

FBA:
Amazon Seller central video walkthrough or read-only access. Make sure to get proof of stock costs and shipping costs from the manufacturer. Look at every line item in the P&L and request for proof.

 

Verifying Ownership

Flippa verifies ownership of the main asset. However, if the listing has multiple assets we recommend that a full verification is done by the buyers.

Websites / Apps:
You can request read-only access to any analytics on the site or for other proof from the seller to verify ownership of the asset.

FBA:
Amazon Seller central video walkthrough or read-only access.

 

Monetization

Many online businesses will have more than one revenue source, so it is important to fully understand how the business is monetized.

Websites / Apps / FBA:
It is important to identify all the monetization methods an online business uses to make money. This can be done by making sure all revenue and cost amounts are equal to what’s claimed on Flippa. Once you have identified how the business is monetized, make sure you’re capable of performing those same tasks (such as posting affiliate links or stocking inventory), or can easily learn how.

 

Revenue Transferability

It is important to verify that all revenue can be swapped to a new owner, upon buying an asset. This is to make sure the business is still profitable upon taking ownership. Buyers should look over the terms of any third party accounts that are going to be transferred or created.

Websites:
Make sure that the revenue account can be transferred or that opening a new account is straightforward and easy. For example, AdSense accounts cannot be transferred, while PayPal accounts can easily be transferred.

Apps:
For in-app purchases, Advertising services like AdMob or ChartBoost can easily be swapped by placing your own ad IDs into the app. Many sellers can do this for you upon transfer. For in-app purchases, one just needs to take control of the app and change the payment destination.

FBA:
It is up to the buyer to make sure that the FBA account is transferrable. As a seller, you can make sure the business can be transferred by talking to Seller Central.

 

Tracking

Verifying traffic and analytic information is essential to making sure the business is performing as expected.

Websites:
While Flippa does show Google Analytics stats from the listing itself, we highly recommend getting the full picture by asking for Google Analytics “read-only” access.

Apps:
We recommend getting “read-only” access from the seller’s developer account to verify installs and revenue.

FBA:
We recommend getting “read-only” access to the seller central account to verify product sales and revenue.

Preparing to plan an exit

Preparing to plan an exit

Preparing to plan an exit from your online business? By following these guidelines below, you will have a much easier time selling your business while achieving the highest possible sale price.

Financials

When a buyer looks at your business for sale, the very first things they look at is the numbers driving the business. While keeping track of your financials is good business practice, during the sale process, it could mean significant differences in the final sale price. Going into details here is always better, for example tracking Sales/COGS by product, advertising (FB vs AdSense vs Other), salaries, VA costs, warehousing costs, and refunds to name a few.

A well kept and organized financial statement tells the buyer that the business has been maintained well and inspires confidence that the business can be carried forward successfully.

Analytics

Google Analytics data has always been sought after by Buyers as it gives them direct insight into multiple facets of the site’s performance. It is very common for the buyer to request read-only access to this when reviewing the business. Monitor this on a regular basis to ensure that there are no significant outages in the collection of this data.

Other measures such as keeping track of conversion rates, success rates on email campaigns, Domain Authority ratings, and in-cart upsells, adds to the impression of a well-organized business, likely leading to better offers to buy your business.

Accounts and Bank Details

Review all your accounts (social media accounts included) to ensure that all of them are set up with your companies email address and bank details. All too often they may be set up with personal email and payment details, which may complicate the transfer process to the New Buyer and delay the transfer process. Addressing this before the sale process will give you enough time to deal with any issues before they come up.

Documentation

Support timeframe, where the Buyer can have the Seller available to answer any questions related to running the business. These timeframes typically range from 1 week to 3 months of support (the latter typically for six-figure businesses). To minimize your time commitment in supporting the seller, try to get as much documented upfront before the sale.

Step back from the day to day work you do and start documenting all the processes you follow. This may include, how to add new articles or products onto the site, FAQ’s, how to manage marketing activities, affiliate management, and even how to track and manage Inventory. If you have staff that helps with the business document what they look for to make roles and responsibilities clear.

Make a list of all the important persons related to the business, VA’s, content writers, suppliers, shipping agents, account managers for any of your plugins, and influencers you may have used. This will help the buyer to self-serve most questions when they have a list of names and contact information for these key people.

Depending on the nature of your business, only some of the above may apply or there may be more. This is just a guide to help you think through the thing to expect when you are selling your business.

Keep in mind that the Buyer may not have the same skill set as you and having everything documented up front will widen the appeal of your business.

When is the Right Time to Sell?

Once you have all your ducks in a row, it’s time to start thinking about when you’re going to sell your business.

Before you give yourself an exact date on when you plan on selling your business, it’s extremely important to double down on your operations to try and grow the business as much as possible. A strong 3-month growth trend right before you sell your business creates a positive image that the business is going in the right direction. This is very attractive to potential buyers.

If you’re unable to spend extra time on your business, it is very important to at least maintain current operations and keep the revenue and traffic stable. Too often, sellers will plan to sell their business a few months out and then lose interest in growing the business, so the business starts to decline. When it comes time for them to sell, they realize that their valuations are much lower, compared to the ones they received several months earlier.

As we can see in the two graph, one shows a positive growth trend over the last 3 months while the other hasn’t made any revenue in over 5 months. The poorly timed exit example is extreme, but is an all too common scenario.

Finding the right time to sell your online business can be tricky, and some may have more time than others. Instances like focusing on your health, or selling the business before the introduction of a new family member, may require you to sell when it’s not convenient. While this isn’t ideal (from a valuation perspective), it is always important to sell at the time that is most appropriate for you.

Is There Anyone That Will Help Me Prepare My Business for Sale?

Yes there is. If you have a business generating over $1,000 in monthly profit, it may be worth your while to reach out to a broker. Most online business brokers will provide monthly plans for you to reach your targets and help you maximize your final valuation and sales price.

If this is something that may interest you, we have over a dozen partnered brokerages that specialize in helping online business owners sell their business.

You can read about how to value your business here.