How to Buy Your First Micro StartUp or Side Project
If you're considering buying a small side project, there are several advantages to keep in mind. Firstly, it provides an opportunity to gain experience in building a startup or business without making significant financial or time investments.
However, it's important to have a strong reason or purpose for wanting to buy or build a side project. Without a clear "why," it may be difficult to stay motivated and committed to the journey.
Common Reasons to Buy a Side Project
1. To Learn Something New
Buying a micro startup can be a great way to expand your knowledge and skills in a specific area. Whether you’re a software engineer exploring new technologies or a marketer wanting to understand the tech industry better, a side project offers endless learning opportunities.
2. To Become an Entrepreneur
Some people are motivated by the desire to be an entrepreneur and experience the excitement and challenges that come with it. Buying a side project allows you to make key decisions and grow the project while requiring a focused and dedicated approach.
Other reasons include:
- Seeing its growth potential
- Leveraging your existing skills
- Generating an extra source of income
- Powering up your existing business
- Boosting your resume with entrepreneurial experience
Steps to Buying a Side Project
1. Discovery Phase
Research the market, explore different listings, and compare prices. Analyze pros and cons to find projects that align with your goals.
2. Get in Touch with the Seller
Contact the founders or sellers of the projects you’re interested in and ask questions to gather more information.
3. Carry Out Due Diligence
Verify the metrics provided by the seller and assess the health of the business. Ask for access to traffic and revenue metrics.
4. Sign Contracts and Make Payment
Once you’ve reached an agreement, sign a contract (asset purchase agreement) and use a secure escrow service for payment.
5. Post-Sale Period
Many sellers offer a month of free support after the sale to help you transition smoothly. Consider extended support if needed.
Buying a side project can be a cost-efficient way to build a side hustle or even a full-time business. If you're interested, explore Micro Startups Acquisitions Premium for listings.