What I Learned Buying and Running an Online Retail Business

What I Learned Buying and Running an Online Retail Business

Buying a business is exciting, nerve-wracking, and to be honest at times a bit overwhelming! 

When I took over The Best Backyard, an online retailer specialising in outdoor furniture and kids outdoor play equipment, I thought I was prepared. I’d done my due diligence (or so I thought), had a vision for growth, and was ready to hit the ground running.

I knew it would take me a while to understand the business and get up and running but didn’t anticipate so many challenges so early on!

The Due Diligence Oversight

Despite carefully reviewing the business’s financials, I discovered during settlement that some figures had been overstated. I’d done my own due diligence and thought I’d covered everything, but I missed certain expenses. 

The reality? Sometimes, when you want a deal to work, you don’t look hard enough for red flags.

My biggest lesson? Hire an accountant. A third-party expert without emotional attachment will spot things you might miss.

The Handover Challenge

I took over the business just before Black Friday, peak sales time for a business like this. If I could go back I would have negotiated more support during the handover period so I wasn’t thrown in at the deep end!

No Systems, No Procedures = Problems!

Once I was in the driver’s seat, I quickly realised the business was more disorganised than I expected. There weren’t clear systems for handling customer inquiries, order processing or logistics which caused duplication of work, customers not being followed up on and mistakes being made.

 I quickly implemented some processes for customer service and training the team to ensure a better experience for customers & smoother operations.

Turning Things Around

Despite the early challenges, I’m happy to say the business is thriving. Here’s a few of the things that have helped The Best Backyard to grow over the past year or so:

• Expanded the product range: We’ve added some brands in our existing outdoor furniture & outdoor kids play categories and launched a new range of garden storage products
• Revamped the website: The old site was outdated and needed a facelift, so I focused on improving the conversion rate.
• Introduced ‘giving back’: We partnered with i=Change to donate a portion of each sale to charity, building customer trust while giving back.
• Restarted the blog: Educating and informing customers has helped drive engagement and trust.
• Added a phone number: High-value purchases often require a personal touch, so we made it easy for customers to call and speak to someone.

Buying The Best Backyard has been a bit of a rollercoaster. I made some mistakes in due diligence and the handover, but in the end, it worked out well, and I’m really enjoying growing the business.

If you are thinking of buying a business, my advice is simple: be thorough, get expert advice, and be ready to roll up your sleeves. It’s challenging, but if you do it right, it’s incredibly rewarding.

Tags: buying business owner small business tips online