How do I check a web studio’s reliance on one platform like WordPress or Shopify?
Sort the studio’s projects and income by the platform each one runs on, then ask who on the team can work outside it. If most work sits on one platform, find out what a change in that platform’s direction, pricing or popularity would do to the studio’s clients and its staff.
Ask for a project list with the platform noted next to each, plus the income each project produced. Look at the share that comes from the dominant platform, and at whether that share is rising or falling. Studios often specialize on purpose, and that can be a strength, but the buyer should know what the specialty rests on.
Then look at the people. Which developers can build on other platforms, and how comfortable are they? If everyone learned one tool and the person who understands it best is the owner, the reliance is on a person as well as a platform. Ask what training the team gets and whether anyone has actually delivered a project elsewhere.
Finally, think about clients. Many were sold on the platform name as much as on the studio. Ask what a client would do if the platform changed its terms, introduced new fees, or fell out of favour. Ask also about add-ons and themes the studio relies on, and whether those come from third parties who could disappear. A realistic plan for diversifying is worth discussing with the seller before closing. Ask which projects the team would turn down because they sit outside the platform, and why.
Key takeaways
- Break down projects and income by platform.
- Check whether the team can really work outside it.
- Ask what happens if the platform changes its terms or fades.
- Look at third-party add-ons the studio depends on.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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