How To Grow HUGE Asset Value Quickly In eCommerce
Many people launch eCommerce sites and scale them up quickly so they can flip and cash out... And then do it all over again.
It can be very profitable and it's important to understand the key factors that impact the value of an eCommerce business.
The first is NET PROFIT... obvious enough, right?
The second is the AGE of the business.
There are other factors which we'll take a look at in a moment, but these are the big ones.
Let's look at the math and how an eCommerce business is typically valued.
The formula is:
VALUE = Net Profit (annualized) X Earnings Multiple
Now, the "earnings multiple" is greatly dependent on the age of the business.
Here are the typical Earnings Multiples for eCommerce:
Age: 6 months to 12 months = 1X - 2X
Age: 18 months to 24 months = 3X - 4X
So, here's what that means in real-life scenarios:
Annual Net Valuation Estimate:
Profits: 1 YEAR OLD 2+ YEARS
$36,000 = $ 72,000 $144,000
$75,000 = $150,000 $300,000
$150,000 = $300,000 $600,000
You can see how the numbers change dramatically for you as time goes by.
Most people find it very worthwhile to resist the tempatation of cashing out too early. Continuing to scale for another 6 to 12 months can make a huge difference in the amount of cash you pull out of your flip.
One of the other factors which affect the value of your eCommerce business is the size of your Customer and Lead lists. For a prospective purchaser these lists are key to ramping up sales through increasing repeat purchases and creating new buyers from the lead list.
ALL eCommerce stores we launch have integrated list building processes designed to grow the size of your Customer and Lead lists quickly and automatically.
Another very important factor is the NICHE your store is in. Your niche must be a "forever" niche. No informed purchaser will buy an eCommerce business that is build around a "fad", here today, gone tomorrow. So, choosing the right niche is critical.
Finally, the opportunites for growth and the size of your online presence are other factors a prospective purchaser will consider.
The bottom line is, you can grow a Huge and Valuable ASSET very quickly in eCommerce if you know how to launch successfully with ALL of the critical components in place for success.
Take the guesswork out of your eCommerce Launch. At eCommCo we will launch your eCommerce future in 96 hours or less. PLUS, you get Training and Hands-on Coaching and Mentoring so you can grow your sales with confidence.
It's what's BELOW the surface of your thriving eCommerce business that makes it work. The part that only YOU will see.
Profitable and Long-term Cash Generating eCommerce Businesses that blast ahead of the crowd do it with sophisticated Automated Marketing And Selling Systems that do most of the work...
...so you can enjoy repeat buyers, predictable income, and growing sales.
It's the ultimate lifestyle.
BLOG Posted by
Chris Moran
Inc 500 CEO & Founder
EvergreenAutomation.com
eCommCo.com
Author of Amazon #1 Best Seller “Customer Getting”
Press Release by Marketers Media for Amazon
