How to sell a startup correctly
You can sell an idea only if you translate it into a project or in other words – a startup. So a potential buyer will be able to get a visual representation of it. If you propose a “bare idea”, then it is unlikely that anyone will be interested, 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 base.
The project just allows 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 occupation. To sell a project you need to know the marketing and technology that will allow you to do this, as well as possess certain skills.
A large number of finished projects are not sold just because the people who developed them do not have the necessary skills for selling, and not because they offer bad projects. As a result, they do not know how to sell a startup. In other words, there are very few projects that cannot be sold, but there are people who have little experience in this business, or do not have one at all.
It should be noted that there are two main reasons that encourage the project to sell. One of the reasons is the desire to simply quickly earn money by selling an idea and a project built on it. Another reason – the desire to find an investor who will invest a certain amount necessary in order to be able to implement the project. If there are different reasons, then there may be different sales algorithms, because what works in some conditions may not always work in other conditions.
Accordingly, the first stage of the sale of a startup is to determine the goals
Accordingly, the first stage of the sale of a startup consists in setting goals. And there should be clear goals. If the goal is set, 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, it will be incomprehensible to whom you can sell the project. If the goal is to find investment, here, too, you must clearly imagine what amount in question.
In addition to understanding how to sell a startup, you also need to clearly represent your long-term interests, because the choice of a potential investor will depend on them. The awareness of your long-term interests is very important. If you, for example, want to keep the business for yourself after it is organized, then you need to look for such people or such companies for whom such a business is not profile.
The profile investor will invest the money and will most likely claim only the profits from the business, but not the business itself. In turn, if such an investor is selected, for which the business organized by you will be core, then you can simply be used to organize the business, and then they will do everything possible to squeeze out of it. It is good if they simply offer to redeem your share, but they can act differently, even trying to eliminate you if it is difficult to agree.
Search options for investors or buyers of the project are many
If it will be sufficient for you to simply create a business that you do not plan to keep for yourself, then you should not limit yourself to investors who are interested only in profits. In this case, you can also begin to cooperate with investors who are interested, above all, the business itself. You can get more money from such investors, because for them the value of a business is much greater than for those who see it as a tool for investing free money.
So, when we have defined our goals and interests, to understand how to sell a startup, we can start searching for specific investors. Search options for investors or buyers of the project are many. Each of them has pros and cons, which it is advisable to take into account, in order 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 people you know.
Some of them may personally want to participate in the project, someone has friends or acquaintances who may be interested in your project, someone may want to become your partner. This is of course the easiest way, because the contact has already been established, but it also has disadvantages. The main disadvantage is that a special relationship is usually established with friends, in which emotions play a large role.
To search for investors with this option, first of all, you need to get reference books
However, emotions are good in everyday life, but in business they are completely unnecessary, because they will bring some instability, which is bad for business. Among other things, in order to search for investors, one can turn to specialized companies, or take part in special events for which potential investors specially come to look for opportunities.