Strategic Launch: Using Established Online Businesses to Fuel Success for Your New Venture
March 7, 2024
Starting a new online business venture can feel exhilarating and terrifying at the same time.
Bringing your vision to life takes courage. And with increasingly more competition, making your mark isn’t always straightforward.
But … there’s another way to grab a slice of the online market share without taking on too much risk.
How?
By leveraging established online businesses.
This strategy not only helps illuminate a path toward success — it also provides a sturdy foundation to help you launch.
By integrating an existing organization’s credibility, customer base, and operational insights, you can accelerate your business journey.
Let’s take a closer look at how established online businesses can fuel your success.
From tapping into their expansive market reach to adopting and refining their business models, we’ll reveal how this strategy can serve as a catalyst for growth and sustainability.
Keep reading to learn more. 👇
Benefits of online business vs traditional brick-and-mortar
There’s a reason why online businesses are the go-to for modern entrepreneurs.
For instance, the absence of a physical shop slashes start-up costs dramatically. No rent or hefty utility bills mean more money to pour into growth areas, such as digital marketing and product development.
You can also run most of your online business with apps and software tools, instead of relying on physical hardware and manual, costly processes.
For instance, you can use:
A keyword research tool to plan your search engine optimization campaigns and attract organic traffic to your website. You can also use the tool to conduct competitor gap analyses and strategize ways to outrank your competitors.
(To make sure your sales and marketing materials have grammatically correct copywriting before publishing, you can use robust online proofreaders. These tools can also help you spot poor readability issues and unintended plagiarism.
(Other cost-effective tools you can use to run your online business efficiently include:
- Employee scheduling software
- Project management software
- Email marketing platforms
Online ventures also break free from geographical chains, reaching customers worldwide, anytime. This 24/7 operation paves the way for passive income, a dream for many business owners.
(Flexibility is another hallmark of online businesses. You can run your empire from anywhere with Wi-Fi.
Need to scale up? Just tweak your website and conversion funnels — no need for a bigger space. Plus, operating online slashes overhead costs and boosts profit margins.
You can also control team size and make-up. A brick-and-mortar store requires in-person scheduled employees, while online businesses often use contracted help on a “when needed” basis. Use something like a time tracking app for employees to keep track of their hours regardless of where they are.
Contractors may include freelance writers, web designers, and graphic designers. You can even outsource to third-party tools like using an AI logo maker rather than relying on hiring in-house talent for top dollar.
You can also attract ideal customers globally via smart social media marketing and a solid marketing strategy. This is about more than just selling. You’re building a loyal customer base that believes in your brand.
Online businesses also thrive on adaptability.
You can swiftly adjust your business model and marketing efforts to sync with market trends and customer feedback. This agility gives you a competitive edge that brick-and-mortar stores often lack.
How buying existing businesses can boost your new online business
When buying an existing online business, prepare to hit the ground running.
An existing business brings a customer base that’s ready to buy. That means sales from day one. It also means less time spent finding customers and more time growing your business.
An established business has a path laid out. It’s got market access. You’re not guessing where to go — you’re following a map. This head-start cuts down on effort and speeds up growth.
An existing business also has everything set up. This includes websites, marketing plans, and even social media accounts. You skip the hefty setup costs. Plus, there’s historical data coupled with tried-and-tested marketing processes.
Finally, buying a business means you also buy its reputation and brand. This gives you a competitive advantage that’s hard to beat.
Things to consider when buying an online business
When diving into online business acquisition, a strategic approach is crucial. It’s not just about buying a business — it’s about investing in its future.
Here are some key factors to consider when buying an online business:
Strong financial history
A business’s past performance is a window to its soul.
Look for proven success, steady growth, and stability. Consider studying business plan examples from thriving online ventures for deeper insights. These examples share a peak into successful business models, market positioning strategies, and revenue generation tactics.
In other words, they offer a blueprint for what works.
(Attract quality traffic
Make sure the business attracts consistent traffic. But not just any traffic — quality traffic that matches your target market.
(Look at the business’s online footprint. Where do its visitors come from? What brings them? The right marketing channels can boost your venture, while the wrong ones can drain your resources. It’s about finding the perfect match for your audience.
Continue this good work once you take the reins.
Solid customer base
A loyal customer base is pure gold. These buyers are your foundation.
An established community and customer base means less time and money spent on acquisition.
But remember, customer care is vital. It’s not just about having customers — it’s about keeping them and consistently solving their problems.
Good brand reputation
A good brand reputation opens doors. That’s why it’s pivotal to research existing reputations before investing in a company.
Before making a move, make sure that the business’s reputation aligns with your standards and core values. While a stellar reputation is a launchpad for success, a tarnished one can be a costly burden.
Security is also paramount in the digital realm. Conducting a cloud security assessment is essential. This step guarantees that the business’s digital assets are secure and your brand reputation remains untarnished — providing peace of mind and safeguarding your investment.
Remember, the lure of new management might not be enough to wash an existing sour taste out of anyone’s mouth.
Sale price
Finally, there’s the price tag. Make sure you’re getting what you pay for.
That means don’t rush into signing anything. Consult with experts, crunch the numbers, and make sure the investment makes sense.
If the numbers don’t add up, it’s okay to walk away. A smart deal is one that benefits both sides.
Learn from the best – Examples of successful online businesses
There’s a lot we can learn from the success of others.
Successful acquisitions by leading companies can redefine their industries and set new standards for strategic growth.
Let’s take a look at some notable examples.
Gaming: Microsoft + Activision Blizzard
In January 2022, Microsoft’s acquisition of Activision Blizzard for $68.7 billion marked a strategic pivot in the gaming world.
By integrating iconic titles like Call of Duty into its portfolio, Microsoft has expanded its gaming universe. It sets the stage for future innovation in interactive entertainment.
(This move teaches some key lessons, including the importance of:
- Strategic alignment — especially when it comes to core offerings
- Having the courage to make bold moves for a competitive edge
- Investing in sectors with growth potential
It also highlights navigating regulatory challenges. This is a critical aspect of large-scale acquisitions.
SaaS: Adobe + Figma
In 2022, Adobe’s acquisition of Figma for $20 billion was a landmark move, signaling Adobe’s largest investment to date.
Figma, known for its innovative, cloud-based design platform, has revolutionized how designers collaborate. This made it a perfect complement to Adobe’s extensive suite of creative tools.
This strategic acquisition underscores Adobe’s dedication to maintaining leadership in design technology. The company made sure it continued to meet the evolving needs of creatives across the globe.
The acquisition offers several key takeaways for businesses.
Firstly, it highlights the importance of synergy in acquisitions. Adobe chose Figma for its complementary capabilities that enhance Adobe’s existing offerings.
Secondly, it illustrates the value of innovation in sustaining market leadership. By integrating Figma’s pioneering technology, Adobe stays ahead in a competitive industry.
Lastly, this move demonstrates the strategic role of acquisitions in growth and expansion. It provides a roadmap for companies to enhance their core competencies and secure a competitive advantage.
Apps: Facebook + WhatsApp
Facebook’s acquisition of WhatsApp for $19 billion in 2014 was a strategic investment in global connectivity.
WhatsApp’s emphasis on simple, secure messaging resonated with Facebook’s vision of a more connected world. This acquisition significantly boosted Facebook’s communication services.
It integrated WhatsApp’s vast user base into the Facebook ecosystem, solidifying its position as a leader in digital communication.
(This acquisition teaches valuable lessons about strategic alignment and user engagement.
Facebook recognized WhatsApp’s potential to complement and enhance its existing services, demonstrating the power of strategic alignment in acquisitions.
The success of this integration shows how acquisitions can deepen user engagement and expand a company’s reach.
Putting lessons into practice
Giants like Microsoft, Adobe, and Facebook demonstrate how powerful strategic acquisitions can be.
These companies expanded their portfolios and redefined their industries.
But they didn’t jump in without careful analysis and planning.
For blossoming entrepreneurs and established businesses alike, it’s pivotal to acquire businesses that align with your core values and growth goals.
Look for opportunities that:
- Complement your existing operations
- Have successful frameworks in place
- Help you expand and innovate
If you’re ready to explore opportunities that align with your business vision and goals, Empire Flippers offers a platform to help you find and acquire established online businesses.
Start your search today and take the first step toward transformative acquisition.
Here’s to your success!
