Lately, I’ve been looking at purchasing new ecommerce stores instead of starting them from scratch. I have always been against purchasing stores because I’ve always felt that I could create a similar store for much less than the purchase price.
However, one of my friends pointed out to me that I am missing out on time if I start everything from scratch. I also do not have the time to start 5 or 10 stores, let alone manage them right now.
My friend has been purchasing a bunch of ecommerce stores and he wanted to know if I wanted to partner on a certain store last month. This intrigued me because the one thing I didn’t have time for was the day to day operations. But I felt that with my knowledge and experience I could help increase sales on this store.
So the deal that we had was that I handle the store look and feel and SEO. He would handle the day to day operations.
The offer price for this online store was to be about $100,000. I was to buy in for around $25,000 for a 25% share. The current profits of the store was about $100,000 per year. So basically if the store’s income remained even in 2011, I would make $25,000. A 100% return in 12 months, not bad.
So how do I get my Ferrari? Well, at this moment I was looking into leasing one. I can get a F430 for around $3,000 a month for 24 months, but most likely I would try to find a F360 at closer to $2,300 a month.
If things work out as planned, the income from the store would pay for the lease.
Unfortunately, we were unable to purchase the store as someone offered a higher price. But, this is an avenue that I am going to explore more.