How Design Affects Your Sale Price When You Want To Make An Exit
Most investors have figured out that buying and selling websites and eCommerce stores is eerily similar to buying and selling real estate.
You don’t have to worry about whether the property you’ve bought is in a good neighborhood, surrounded by good schools, but you do need to pay attention to the URL of the website – which could be considered its neighborhood.
Even if your business or store has a less-than-memorable domain name, there are quite a few different ways you can get more money for it if you decide to sell it.
One of the easiest and most effective ways to increase your asking price is to make sure your design is up to today’s standards.
Whether you do it yourself, or hire the process out to a designer, having an attractive website plays a direct and indirect role in how much it is worth.
Here are a few different ways that design affects how much you’ll get when you make an exit from the business.
Reason #1 – You’ll Consistently Earn More Money
If your website or business is already making money, investors are going to be willing to spend far more for it than they would if it’s not generating revenue.
This is especially true if you have more than one income stream. Any specific combination of earnings, whether it’s from product sales, banner ads, sponsors paying for posts, or tips from websites like Patreon, income is income.
Every dollar that you earn per month can raise the value of your website by 2 to 3 dollars when you decide to sell. It’s hard to get a return like that in any other industry.
If those earnings are consistent from month to month and you can prove your earnings history, your offering is going to be even more attractive.
When you’ve created this scenario for yourself, the last thing you want to do is start turning investors away because of poor design.
Stop and think about it. Sure, an ugly website may be generating revenue for you right now, but how much more could you generate with a professional design?
It’s one of the factors that investors will consider when they’re making an offer on your business. If they have to take care of the design themselves they’re going to drop their offer by quite a bit as the work will cost time and money.
When your business is viewed as a legitimate business (through a professional web design), opportunities to generate higher revenue are going to present themselves.
Reason #2 – Your Community Will Love You
If you’ve built a community, a loyal following, or a list of email subscribers around an ugly website, congratulations to you.
Now imagine how quickly it will grow when your followers can actually find their way around your site, can navigate to all of your content, and figure out how to give you more money without wanting to tear their eyes out?
Having a good website design isn’t just to make you feel good.
Ensuring that the site is attractive is part of getting new visitors to stick around for more than a few seconds at a time. It also helps ensure you can efficiently move new visitors around to the parts of your site where you want them to go – the checkout being a prime example.
Navigation plays a critical role in bringing visitors back on a regular basis.
If your website is ugly and hard to navigate, your community will eventually get tired of having to fight with the site and move on.
Do them, yourself, and your future buyer a favor, and have the site redesigned so that it’s easy to navigate. It will help you grow your community even faster than you’ve been able to do with an ugly, outdated design.
Reason #3 – You’re Saving Your Buyer Time & Money
When your buyer is considering how much they’re willing to offer you for the business, your design and the functionality of your website plays a big role.
It’s already been mentioned, but the first aspect they’ll look at is your revenue. Then they’ll want to see your traffic sources, and how that traffic is interacting with your website.
If there are a large amount of “dead areas” on your site or areas that are hard to navigate to and rarely accessed, they’ll start looking into how much work or money it’s going to take to start helping visitors gain access to those portions.
This is going to cost them money to hire a developer or worse, the time it will take them to do it themselves.
Having the website redesigned, especially right before you list the business for sale, will show your investor that you’ve covered all bases to make sure the sale moves forward smoothly, and it will instill confidence in them. The best part is it will help you negotiate a higher price tag.
The Role Of Attractive Web Design
By now, you should have a good idea of how your website’s design plays such a large role in the website’s success. This is especially true when you’re trying to position the site for you to make an exit and get maximum value from the sale.
Going back to our real estate investing example earlier, the state of your website is similar to the state of the house or building you would be buying if you were investing in properties.
If the house is run down, you’re going to submit an offer that’s far lower than you would if it had recently been remodeled.
Your website is exactly the same.
If it’s run down, hard to navigate, ugly, and barely getting by on a shared web hosting account, investors are going to treat it just like a rundown property and offer you less as a result.
When you’re trying to make a sale, having aspects of your business be the primary reason buyers are trying to lowball you is a bad move on your part.
If the reasons above aren’t enough for you, why not simply redesign it because it’s the first impression your business makes on the world around you?
Everybody wants to take pride in something they have built, and love doing. An attractive online business is easy to be proud of.