It’s time to take some more action based on books I’ve read!
The last book I read and reviewed was ‘The Website Investor’ by Jeff Hunt. This book sets out the key things you need to know before buying a website and becoming a web entrepreneur. I read this book as buying a website is a potential way to generate more income. From reading various books on personal finance it appears finding other sources of income is an important step to becoming ‘rich’.
Steps to becoming rich:
- Understand how much you spend and save over time
- Don’t spend more than you earn!
- Invest your money
- Automate everything (I’m currently working on a blog about this)
- Generate income in other ways (the focus of this blog)
So why become a web entrepreneur?
To expand on the above point about other ways to generate income, in the book Rich Dad Poor Dad it talks about how the key to success is having other people work for you. This means you earn money without being stuck behind a desk or in factory or wherever you work right now. To have people work for you means you need to own a business.
In the past I always thought that owning a business would be too risky. You’d have to invest your life savings, give up your day-job and then try and beat the odds. You always hear things like “regardless of who you believe, when you start a business there is a good chance that you will fail” or “50% of all new businesses fail in the first 5 years”. The key risk to me was about jumping into a new business without being fully prepared. I can read about running a business from books or attending courses but I fear the reality would be very different from the the theory.
With the ability to buy an online business my fears are reduced. You can buy something that is already established, not too risky in terms of initial investment and doesn’t mean I need to quit my day-job. This means I can learn a lot before increasing my ambitions as I grow more confident over time.
Other benefits to owning websites rather than a physical business:
- Manage it from anywhere with an internet connection
- Global audience to sell things too
- Earn money in US dollars and live in places which are much cheaper (a key point raised in the book ‘The 4-Hour Work Week)
To build or buy an online business?
One option is for to build your own business website. I’ve learnt a lot from building this blog site which could help me run an online business. This includes:
- How to manage a website using WordPress (which is by far the most common platform for creating websites)
- I’ve learnt some coding and know where to find tips on coding. This is important as when buying a website i’d want to know how it works so I can improve or customise in the future.
- Understand how to use social media to increase traffic to a website (still got a lot more to learn in this area)
Whilst I have learnt a lot from building this blog site, I feel in the future I could learn a lot more (and start making money quicker) by buying an existing online business. This approach means I could learn from how existing businesses have increased their traffic, converted their traffic into revenue and how they manage their website. Buying a business could also reduce my time. I currently have a day-job so it would be hard for me to create a new website from scratch (and maintain this blog, which I’m still really enjoying).
In the future, if all goes well, then I can then start to have a deeper debate about building or buying an online business.
Initial actions towards becoming a web entrepreneur – learn, learn and learn some more
I wouldn’t be keen to jump straight into buying any old website. My first experience will have a big impact on my future interest in this area. I’m therefore looking to go over all the different points from the book ‘The Website Investor’ before investing.
The first thing I have done is to sign up for an account on Flippa.com. This is the largest marketplace for buying websites. I am in the process of researching what is available, looking at the differences between websites and what type of investment we want to make.
I’ve started to watch a few sites to see what they end up selling for and comparing this to what I feel would be a fair value.
Already avoided some potentially bad investments
In the book, ‘The Website Investor’, it highlights that there are lots of scammers out there which you need to be wary of. There are also some more subtle scams, or bad investment at least.
For example, there was one interesting website I saw for sale. It was a site selling really good photos. I thought that could be interesting as I’m keen to get more photos onto my blog. When digging a bit deeper, I noticed that the guy was selling a series of sites which looked exactly the same but with different photos. This concerned me as he is essentially creating more and more competition for the site I liked. It would be too late to agree a deal that he wouldn’t create competition – something that the book recommends you do. Therefore, I don’t think this would be a good investment.
Criteria of the website I want
Based on my initial research, I’ve started to set out a list of criteria for the website i’d want to purchase:
- Content to have some overlap with MoneyBooks.blog
- Established site (over 2 years history)
- Generating a steady stream of revenue
- Revenue not just from advertising
- Statistics verified by google analytics
- Not too expensive. Less than US$10,000
I’m keen not to spend too long trying to find a website that is 100% perfect. Like investing in general, the best thing you can do is start! So if I can found a website that was 80% of perfect then that could do. Why would anyone sell a 100% perfect business anyway!?!
There you have it, I’m now deep in the process of taking more actions based on books I’ve read. I’ll let you know how my research goes and share more in the future.
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Below are a list of links which are referenced in this blog:
- Book review: The Website Investor
- List of steps to become rich: Trying to become a ‘Rich Dad‘ (most popular blog)
- 1st step to becoming rich: How and why you should track your finances
- 2nd step to becoming rich: The Long and Short of investing to become a ‘Rich Dad’