How to Get Started If You Are Ready to Sell Your Shopify Store

The joy and excitement that comes along with building a Shopify store can be unmatchable. The entire journey can be filled with several different phases and experiences including challenges, successes, failures, and affluence. While experiencing the joys of running a Shopify store, there can come a time when you may want to put your Shopify store for sale. There can be many reasons that might have led you to make this decision. You may have reached a phase where you would want to pursue something different, move to another business, or other reasons. In other cases, based on how you run your business, you can potentially achieve goals set for your business and keep it going. However, if you find yourself ready to put up your Shopify store for sale, getting started can seem confusing.  

If you are intrigued by the idea of getting your hands on a large capital windfall, then you can go ahead with putting up your Shopify store for sale the best way. This article helps you understand how you can discover and increase the value of your Shopify store for sale. It also helps you understand who can be your potential buyers and how you can place yourself better with them.

Before  Putting Up Your Shopify Store For Sale

Before you go ahead with approaching investors and buyers with regards to your Shopify store for sale, it is best to get more insight into a few aspects of your business. Naturally, every business owner tends to value their business a certain way and up to a certain amount as they come along with the founder’s bias. However, it is important to understand how to evaluate your business accurately so that you can approach the investors and acquirers more effectively. In many cases, founders tend to overestimate the value of their business. However, it is important to understand that your business value is not inherently based on how much work you have put in or the amount of capital that has gone into building this business. 

It is fundamentally based on the history of the business’ performance and how the performance is in the current time. To arrive at a valuation for your business, all you have to do is multiple your net profit with the multiple. The net profit that is considered to calculate your valuation is typically an average profit amount that is considered for 12 months. You can also use the trailing 12 months average to calculate your net profits. However, this average may not accurately determine the state of your business. As a seller, it can be beneficial for you to consider the monthly average as most business buyers can understand the history of your business. This can help increase the number of interested buyers. 

Factors Influencing Business Valuation

4 main factors influence the valuation of a business. Make sure that you consider these 4 primary aspects to accurately calculate your business valuation.

1. Age

The value of your business also depends on age of your business. If your business has been in the market for a long period, it is an indication that your business is resilient and is valued more. 

2. Products Inventory

The products inventory is also another aspect that can be considered. To ensure that your business is protected against unpredictable circumstances, it is important to not be entirely reliant on one product. So, a diversified product inventory can be a green flag to present to the buyers. 

3. Brand Strength

The recognition of your brand is a very important aspect as it can determine the amount of traction you have, your current customer, potential growth of customers, and your revenue. Having a strong presence can be identified by the number of recurring customers, increase in customer base, increase in revenue, and other factors. 

4. Traffic Diversity

Gaining insight into your traffic diversity can be beneficial as it can provide insight into the types of customers that are interested in your products or services. In case the traffic diversity is less, then you can understand that the market penetration is focused on a few user personas.

Where to Put Up Your Shopify Store For Sale?

To begin the selling process, once you have calculated your valuation, it is time to identify the right channel for putting up your Shopify store for sale. There are many marketplaces that you can consider to go ahead with placing your Shopify stores for sale. Here are some of the common channels:

1. Acquirers

There are plenty of acquirers available through professional companies who often approach businesses with a proposal. These acquirers fundamentally provide an end-to-end service beginning from the valuation process of your brand up to the very end of the sale. 

2. Private Sale

A private sale has the benefit of providing you with the freedom of choosing the company or entity to which you would like to put up your Shopify store for sale. On the challenging side, it can be very difficult to find a potential buyer if you choose to take the route of a private sale. Moreover, the success rate with this channel is very low. 

3. Brokers

Brokers can be a good channel as you can approach them not only to complete your sale but also to gain information regarding certain marketplaces, companies, acquirers, and other businesses. Brokers are typically equipped to provide advice for small-sized and medium-sized businesses and save time and energy for these businesses. 

4. Marketplaces

There are plenty of online marketplaces available where you can put up your Shopify store for sale. You can leverage marketplaces by not relying on another individual and save plenty of money on commission. 

In a Nutshell

If you are planning to put up Shopify stores for sale, make sure that you begin with the process of identifying the valuation of your business. Make sure that you have a clear set of the required financials as well as other paperwork so that you can have a smooth selling process. Finally, make sure that you choose the right channel to sell your store. You also have the option to sell Shopify stores here in a hassle-free manner.