Internet Works – 1 July 2004
Whatever happened to... BusinessesForSale.com
First covered in Internet Works Issue 48, Businessesforsale.com is still doing the business, as developer-turned-chairman Andrew Markou relates
IW: Can you briefly outline the service offered by Businessesforsale.com?
AM: Businessesforsale.com offers an online channel for buyers to find sellers of businesses of varying size and type. We have a global representation with notable footholds in the UK and US markets. The service is predominantly based on an online classifieds model with various web-based tools to aid buyers and sellers to connect with each other.
IW: Since we last spoke to you, how have the fortunes of the company fared?
AM: The fortunes have continued to rise, reflected not least in our achieving profitability. We now have a critical means of content and users and have successfully launched into the related market of franchising through our sister site FranchiseSales.com. Annual turnover is over £800,000.
IW: What is the key to selling an online service as opposed to a tangible product?
AM: Accessibility to enough information. That means making the user aware of the benefits of what is available yet only showing enough to serve as an inducement to tip the user over into a sale.
IW: One of the original successes of Businessesforsale.com was that your business model benefited from severed revenue streams. What have you added to the service to complement these revenue streams and how have they driven the business forward?
AM: Initially our sales came from charging sellers to publish business for sale content. We have started to charge buyers to access that content too. Of notable growth is the success of franchisers advertising to recruit new franchisees. We are also having success in referring users to relevant third party services providers and suppliers involved in businesses for sale, such as finance providers, legal and accounting services.
IW: As somebody who hails from a technical background, what unique skills were you able to apply to the purely business perspective of Businessesforsale.com?
AM: It seems obvious to say, but we always look to make technology do the legwork in achieving any given requirement, getting into the idea that technology-based products should be as self-servicing as possible. This enables them to be scaled up as and when usage increases without necessarily increasing the associated cost.
IW: Businessesforsale.com stretches into overseas territory. What are the challenges in marketing this from a UK base?
AM: Knowing how businesses are bought and sold in a particular region is definitely a case of understanding and being sensitive to local needs. We’ve invested in the technology to create completely customisable versions of BusinessesForSale.com to give us the control to tailor the user experience in any given region. Also, establishing good lines of communication with your customers is a must – user surveys are a good way of achieving this.
IW: In the wake of the dotcom crash, and in more recent years, have you faced any particular challenges?
AM: Making sure that we weren’t blown off course from our long-term objectives, and having the belief that what we were doing was creating real value for our users and customers through the innovative use of internet technology.
IW: What is your current set-up with regards to premises and staff?
AM: Our offices are based in Clerkenwell, London and the company employs nine people. The team has maintained a similar structure for the past couple of years, though we are endeavouring to strengthen the technology team in the near-future.
IW: Where will you be making profits in five years’ time?
AM: Our profits will be made in three areas. Firstly, in technology-based products for professionals buying and selling businesses. Secondly, we’ll gain insight and analytics on the behaviour of how businesses are bought and sold. Finally, we’ll look to provide classified technology to publishing companies.
IW: Do you have any advice for someone wanting to start up their own online business?
AM: Have a clear and identifiable need then work to use technology to service that need in ways that aren’t imaginable in the office, real world. Also avoid the clanger of attempting to do too much too soon, losing sight of achievable short-term goals. It’s easy to over-engineer technology to do things it needn’t do. Sometimes it’s best to prove something by dipping your toe in the water and once you know the temperature’s right then taking the plunge.
Expert View
Businessesforsale.com is an excellent example of how businesses can benefit from using the internet to open their business up to the rest of the world.
Moving forward, I would advise that they remain focused on their business objectives, ensuring that they assess each decision and the impact it will have on the future of the business.
Another way that they could maybe increase their turnover is to promote the baseline of advertising on their site to trade associations and industry bodies.
Company History
APR 1997: BusinessesForSale.com founded in Birmingham as a free bulletin-board service.
DEC 1999: Business moves to London.
SEPT 2000: First paying US Seller customers.
FEB 2001: First paying UK and rest-of-world Seller customers.
SEPT 2001: Featured in Internet Works (above).
JUNE 2002: Company runs its first How to buy a business seminar.
OCT 2002: Launch of sister site FranchiseSales.com.
Apr 2003: First paying Buyer customers
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