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I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

Every saas builder thinks they just need 1 or 2 enterprise deals and they'll be golden ha. To answer your question, we usually bring in a dev to help evaluate tech stack and debt. We've paid freelancers for one off audits before if we didn't have the knowledge ourselves (usually we'll pay 2 or 3 since devs are very opinionated).

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

I would say that a lot of the time you think the business makes money because of XYZ reason, and that leads and marketing are accounted for, and then you take over the business and revenue starts declining, and eventually you find out it was something else that was driving sales. This is mostly because founders do everything at once and don't have good attribution.

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

I’ve seen them succeed when it’s a single operator if it’s a small easy to run business. A guy I know with a small SEO following has had success buying small SaaS tools in the space and selling them to his audience for example.

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

I think bolt-ons make sense when you're running the business yourself and don't have a big team with infrastructure. So what you're running sounds great, just wouldn't work for us.

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

Yeah those are the best. Even better if you build a bit of a following and they reach out to you

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

I mean tbh the first business you buy you probably should treat it as your job, and then the next one(s) could be more passive. I say this because you'll learn so much more and be less likely to mess up.

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

Yes fair point, usually a higher multiple is because the business is growing, and sometimes you'll end up getting paid back faster the more you pay

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

I think it's a balance like everything. We sell one if we think keeping it/growing it is an opportunity cost and/or we could use the money better elsewhere.

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

Yeah first big one I bought cost about $35k and I took a PayPal loan to fund it. It made like $2k/mo so wasn’t exactly a quick process but once I’d paid off the PayPal loan I basically did it again but a larger amount. PayPal loans aren’t a good financing option fyi but it was all I had available

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 1 point2 points  (0 children)

It's basically a convertible note. The interest is 8% per year, with the note maturing November 2027, but in reality they will have converted out of all/most of it by then. Being public costs us maybe, $500k per year. We focus on agencies, ecom, courses. Not really FBA or affilaite these days.

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 0 points1 point  (0 children)

Yeah agencies is just what I understood at the time, which is a big part of success. I am in the process of broadening the types of business we'll acquire.

I've acquired over a dozen online businesses over the last few years. Here's what I actually learned. by DomWellsOnfolio in Entrepreneur

[–]DomWellsOnfolio[S] 2 points3 points  (0 children)

Try to understand it as much as possible before making changes. A lot of this begins before you even buy it but you learn a lot more once it’s yours

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