This episode delves into the critical build vs. buy decision for ecommerce businesses and offers practical advice for founders looking to sell their brand. It provides a framework for evaluating whether to develop solutions in-house or acquire existing ones, alongside key considerations for maximizing brand value and navigating the sales process.
Key takeaways
Before building, thoroughly assess if an off-the-shelf solution can meet 80% of your needs; custom builds are expensive and divert resources.
Understand that potential buyers value clean financials, demonstrable customer loyalty, and a diversified marketing strategy; prepare these proactively.
Implement clear SOPs and documentation for all key processes and roles to increase your brand's attractiveness and reduce buyer risk.
Prioritize building a strong, unique brand identity and engaged customer base, as these are significant drivers of valuation during an acquisition.
When selling, consider engaging a broker who specializes in ecommerce businesses to navigate negotiations and legal complexities.
Should you build a brand from scratch? Or buy an existing brand and apply your genius to scale or improve it? Mike Jackness is one of my favorite eCommerce pros to talk to. He’s a podcast host. He’s built, bought, and sold multiple brands. And he has a heart to teach.He’s currently running a successful eComm brand that I’m an investor in, and it’s in the process of selling. We wanted to hop on the podcast and talk about the process plus the pros and cons of buying vs. selling. Here’s a look at what we cover: What you’re actually buying when you buy an existing business. How Mike looks at brands, he wants to buy or invest in. How to approach due diligence as a buyer or a seller. Surprises to look for in the due diligence process as a buyer or a seller. How getting your business ready to sell now will make your business better regardless of if you sell it or not. The good, the bad, and the ugly of M&A. Plus more!
What does this episode say about founder & leadership?
Before building, thoroughly assess if an off-the-shelf solution can meet 80% of your needs; custom builds are expensive and divert resources.
What does this episode say about finance & fundraising?
Understand that potential buyers value clean financials, demonstrable customer loyalty, and a diversified marketing strategy; prepare these proactively.
What does this episode say about supply chain & operations?
Implement clear SOPs and documentation for all key processes and roles to increase your brand's attractiveness and reduce buyer risk.
What does this episode say about founder & leadership?
Prioritize building a strong, unique brand identity and engaged customer base, as these are significant drivers of valuation during an acquisition.
What does this episode say about founder & leadership?
When selling, consider engaging a broker who specializes in ecommerce businesses to navigate negotiations and legal complexities.
