How to sell a startup and get rich
You can sell an idea only if you translate it into a project or, in other words, a startup. So the potential buyer will be able to get a visual representation of her. If you propose a “bare idea”, then it is unlikely to interest anyone, if only because it is not clear how you can make money on it. It is also not clear what costs should be incurred and it is not clear whether someone needs this idea and the product that will be created on its basis.
The project just allows us to clarify these and other issues, to clothe everything in a symbolic and visual form. Selling a finished project is not an easy task, but at the same time it is quite an interesting and often profitable activity. To carry out the sale of a project you need to know the marketing and technology that will allow you to do this, as well as have certain skills.
A large number of finished projects are just not for sale precisely because the people who developed them do not have the necessary skills for sale, and not because they offer poor projects. In the end, they don’t know how to sell a startup. In other words, there are very few projects that cannot be sold, but there are people with little or no experience in this business.
It should be noted that there are two main reasons that prompt to sell the project. One of the reasons is the desire to simply make money quickly by selling an idea and a project built on it. Another reason is the desire to find an investor who will invest some amount necessary in order to implement the project. If there are different reasons, then different selling algorithms may exist, because what works in one environment may not always work in other environments.
Accordingly, the first stage of selling a startup consists in setting goals
Accordingly, the first step in selling a startup is to set goals. Moreover, there should be clear goals. If the goal is to sell the project, then you need to clearly imagine what amount I would like to help out. If you do not have a clear idea, then it will not be clear to whom at all you can sell the project. If the goal is to find investment, then you also need to clearly understand what amount is involved.
In addition to understanding how to sell a startup, it is also necessary to clearly represent your long-term interests, because the choice of a potential investor will depend on them. Awareness of your long-term interests is very important. If, for example, you want to keep the business behind you after it is organized, then you need to look for people or companies for which such a business is not core.
A specialized investor will invest money and will most likely claim only profit from the business, but not the business itself. In turn, if such an investor is selected for whom the business organized by you turns out to be profile, then you can simply be used to organize a business, and then they will do everything possible to squeeze out of it. It’s good if they simply offer to redeem your stake, but they can act differently, up to attempts to eliminate you, if it is difficult to agree.
There are many options for finding investors or project buyers.
If it turns out to be sufficient for you to simply create a business that you do not plan to keep, then you should not limit yourself to investors who will be interested only in profit. In this case, you can also begin to cooperate with investors who are interested, first of all, in business as such. You can get more money from such investors, because for them the value of the business is much more than for those who see in it only a tool for investing free money.
So, when we have defined our goals and interests, to understand how to sell a startup, we can begin to search for specific investors. There are many options for finding investors or project buyers. Each of them has pros and cons that should be taken into account so as not to get those problems that you are not ready to solve. One of the easiest options for selling a project is to negotiate with all the people you know.