Forums: Discussions for entrepreneurs and small business.

There is a business for sale for 120,000 and it brings in 6-7K a month the website uses adsense.  I am not new to businesses just online businesses is there any catches that i should look for.

 

Jason

Why would anyone sell a "Golden Goose" for a few eggs? Are the figures correct? Does everything add-up?

It just sounds too good.  Do these figures represent Net income? What is the overhead/cost of running the business?

Do you know how to maintain that level to keep it going?
Obviously they are selling it because a) it doesn`t bring in that much, or b) it`s a lot of work to keep it up.

That makes you think. What happens if the cost of marketing goes up and your profit goes down? Will this person sell his or herself as an consultant to help you succeed? What happens if Google changes their current rules?

Hello jason,

All that glitters is no gold, Period!

Pray and ask God for HIS divine counsel before you dip your neck into it.

Chidera

Hi Jason,

 

Outside of the sellers word, what other evidence do you have that the company is doing that well?  Have you check their accounting books or seen any other write up on the company to support the sellers claim.  Or, have you talked to any customers, suppliers, creditors. 

 

Also, have you researched the market for the product line?  Is it a viable market or one that is likely to crash?

 

Where do they get their product to sell?  Would you have access to this same product line and at the same cost?

 

Is the 6 – 7k a month figure based on before or after operating expenses have been factored in.  This will make a big difference on what you would actually expect to earn.

 

I will end this with one last thought.  Anything on the internet that sounds too good to be true, is usually some type of internet scam.

 

 

 

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

It doesn`t just have to be on the internet --  anything that sounds too good to be true usually is!  How much of the business relies on the adsense?  It was recently explained to me that you would need literally tens of thousands of clicks to have adsense add up to much of anything.  Furthermore, if this site is so good, can it be duplicated?  If so, would it be more prudent to do your own thing?  You need to dig a little deeper before you plunge head first. 
You may not like the answers.
jillybeans