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Should You Grow by Buying Another Business?

Many of us have been in the position where we have an interesting opportunity in front of us to purchase another eCommerce business – maybe it has a complementary product line or it would make a good strategic addition to your existing business – and we’re on the fence about whether we should actually pull the trigger. In this solo episode, I’m sharing the top things you should consider before committing the time, effort, and money that it takes to follow through on such a huge decision, all based on my own experience closing deals.

Listen in as I dive into what you need to consider before buying that shiny new object, including whether you have the skills to diligence the deal well and the time to follow through on the deal. (Spoiler alert: It will take longer to close than you think it will!) I also discuss the financial aspects to consider, how to identify the micro and macro leverage you might have to move the deal in your favor, and why sometimes the better decision is to put a little TLC into your existing business rather than spread your energy (and capital) too thin.

You’ll learn:

  • What you need to understand before buying. (3:00)
  • Why you really need to consider your bandwidth. (5:45)
  • What to keep in mind about your core business. (6:40)
  • Why it’s key to consider your leverage. (7:50)
  • An important thing to ask yourself about your current business. (9:20)
  • What to think about when it comes to product lines. (10:10)

Subscribe: iTunes | Stitcher

(With your host Andrew Youderian of eCommerceFuel.com)

 

What Was Mentioned

Image credit to Gerd Altmann from Pixabay.



Andrew Youderian
Post by Andrew Youderian
Andrew is the founder of eCommerceFuel and has been building eCommerce businesses ever since gleefully leaving the corporate world in 2008.  Join him and 1,000+ vetted 7- and 8-figure store owners inside the eCommerceFuel Community.

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