Due Diligence is Necessary When You Buy a Website
Reprinted with permission of VotanWeb.com
According to industry statistics, nine out of ten people who begin the search to buy a website never complete a transaction. While there are many reasons for this dismal figure, a lot has to do with the inability of people to "pull the trigger". This gun-shy reaction is due to uncertainty: if you have not gathered the right information or failed to investigate the website thoroughly you will not be 100% certain of what to do.
Due diligence is probably the most critical stage in the website buying process. Many prospective buyers incorrectly identify this period as strictly a financial review. However, an effective due diligence goes far beyond the numbers. Due diligence is the complete investigation and review of a website.
One of the keys to buying a good website comes from your ability to learn the intimate details of it. It is imperative that you identify the strengths, weaknesses, growth opportunities and areas of concern with each website. If you don't do a flawless job of gathering information, you will not be able to pull the trigger and complete the transaction since you'll be uncertain about too many components of the website.
The investigation process must begin the moment a website becomes of interest. Your goal is to be certain that you uncover everything about any website before you buy it. You don't have to communicate with the seller for your research to begin. The Internet is an incredible tool that will allow you to investigate the website, the industry, the competition, the marketing, the suppliers, and on and on.
The importance of beginning your investigation early cannot be emphasized strongly enough. This way, you'll position yourself to ask the seller the right questions. Once you progress to the stage of an accepted offer, you will commence the financial due diligence. This period usually lasts 10-30 days. This is the time when you'll have access to all of the website’s books and records.
Once you begin looking at a particular website, you'll find a thousand things crossing your mind regarding the acquisition. Keep a notepad handy at all times and log your thoughts. Don't trust your memory; these little things are the ones that can and will come back to haunt you down the road. Begin to put together your checklist of what you need to investigate and how you're going to do it along with the materials you require from the seller to accomplish it.
The growth of online business has grown enormously over the years. Cliptomania is a family operated and owned small e-business that primarily sells clip on earrings (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012, p. 308). Cliptomania early developments were very modest, and as such the company experienced copious strategic dilemmas. An initial strategic dilemma that the company encountered when establishing and building their new e-business undertaking was to create a website for the business operations and essentially to have it fully operable. The owners, Jim and Candy elected to hire a vendor to host the website and additionally utilize the IT systems resources of the vendor to sustain their business. At the very beginning they exploited the offerings of the Yahoo Store. However, continuing down this avenue of using the services of the Yahoo Store inevitably became too costly. By using the services and business offerings of a vendor made it convenient and effortless for Jim and Candy to start their e-business store. Unfortunately the couple did not have much in the way of professional help, and so they had to create and put together the website by themselves. Additionally they also had to deal with establishing their online credibility as many customers preferred to call in their orders just to talk with a real person before being comfortable enough to place their orders via the webpage.
Yeats, W.B. The Collected Poems of W.B. Yeats, 2nd revised ed. Ed. Richard J. Finneran.
Keats, John. “La Belle Dame sans Merci: A Ballad.” The Norton Anthology of English Literature Seventh Edition, Volume 2. Ed. M.H. Abrams and Stephen Greenblatt. New York: W.W. Norton & Company, Inc., 2000. 845-846.
Due diligence basically means evaluating company decisions prior to finalization. This focuses on numerous areas including financial, legal, and regulatory, accounting and tax. In summary, due diligence is fixated on making numbers work. When this stage is cleared after thorough observation then partners move onto the next stage. In Telstra a great aspect of time was spent on this stage, everything was double checked before moving onto the subsequent step. It is evident that Telstra has been successful in making numbers work.
In today's competing world, many organizations are rethinking their strategies in terms of the online business and its capabilities and culture. Organizations are taking advantage of the widespread web to buy and sell goods from other companies and recently from individual customers. Exploiting these opportunities of convenience, availability and widespread reach of the web or Internet, many companies such as Amazon have benefited from the use of web successfully.
Increasing the minimum wage has always been a very controversial topic because many people are unsure of how it will effect society. One of the main concerns is its effect on jobs. According to most economists there is no “free lunch” meaning something has to be done to pay for the cost of increasing wages (Wilson). Most companies will not just take the hit and accept reduced profits. Instead companies will find other ways to makeup for their loss like decreasing the amount of employees. With information limited to two opposing opinionated articles, a novice can conjecture increasing minimum wage does not significantly decrease the amount of jobs.
Mishra, Sita, and Mathew, Priya. "Analyzing Perceived Risks and Website attributes in E-Retailing: A Study from India." Journal of Internet Banking & Commerce 18.2 (2013). Print
And so it is with the characters in Eugene O'Neill's Long Day's Journey into Night. Time is little more than a game in which they move as checkers, if not pawns. In their repetitions and habits, the family seems to be stepping towards the same river again and again; but each time, the step falls into a different stream. In its seeming droning inaction, the play moves sharply and excruciatingly through eternities.
Websites can also be set up for potential buyers. On the site, such things as contacts can be listed. Phone numbers, addresses, and email addresses can be shown, as well as fax numbers, for those who do not feel comfortable with new technology.
Yeats, William Butler. “Leda and the Swan.” The Norton Anthology of Modern and Contemporary poetry. 3rd ed. Vol. 1. Eds. Jahan Ramazani, Richard Ellmann, & Robert O’Clair. New York, NY: Norton, 2003.
Internet commerce is one of the fastest growing industries today. With the wide range of capabilities the web has it make it easier and cost efficient for businesses to make transactions with other businesses. One factor that allows businesses to find each other is search engines. Search engines are part of the reason the web is growing so rapidly.
Having a website is a necessity nowadays, especially for people who are in business. Having a website helps promote your company’s services, for consumers to view and research your products easily, and also because internet is universal, people worldwide could purchase your products. Aside from business purposes, a website could also be built for personal use. If you’re into blogging, you can have your own site to express everything you want or feel; a website could also be used to inform people. Due to technology’s fast evolution, creating a website is now a very simple task even for those who have no background in web designing, all you need is a working computer and an internet connection and you’re ready to create your very own site!
So, it is important to make your business easily accessible through a website where you can put all the details about your business and the services and/or products you offer to your consumers.
growth in usage by both consumers and businesses. The unique capabilities of the Internet has captured the attention of the marketing community. While a growing number of companies have or are interested in developing an Internet presence, there is still a great deal of uncertainty about it and the potential ethical issues associated with its use as a marketing medium. Although many businesses are acknowledging the importance of a Web site, but the potential ethical issues related to marketing on the Internet still having an uncertainty in this situation. Much less attention has been given to the business community's perceptions of the ethicalness of this new medium. The unique interactivity of the Internet has captured the marketing community's interest as a way to develop and enhance customer relationships and establish greater brand identity. Thus, many commercial services have become available on the Internet that allow consumers and organizations to interact electronically. These services include booking airline tickets online, buying books and compact discs, and receiving stock market information. Although the number of consumer users and commercial organizations navigating on this "information superhighway" is growing almost exponentially, the benefits of the Internet are not without drawbacks.
Organizational buying behaviour can be described by using the buy-phases (Dwyer and Tanner, 2006) which helps in the explanation of the various steps that are involved in a typical organizational purchase decision making process.