How do I sell my business idea? I have a great business idea but I want to sell it to someone rather than build a business myself.
Sorry to dampen your enthusiasm, but this is not the way things work. Ideas are nearly worthless. It’s execution that creates value.
Imagine an investment that has a 1% chance of giving you a fantastic return, a 10% chance of giving you an okay return and a 89% chance of no return and losing all the money you put in.
Would you invest?
No? Most other investors wouldn’t either. When you are trying to sell an idea which is not proven, these are the kind of odds.
People don’t buy ideas – they buy income streams. Either actual ones or potential ones that are backed by something solid such as research, contracts or sales.
What if you can’t prove that your idea will make money? You can swing the odds in your favour by doing some research and evaluation of your idea. Depending on the idea, you may need to prove:
· Technical feasibility – can you actually make a product that has the features you want?
· Market feasibility – do people want to buy it?
· Business feasibility – can you create a business model around it that makes money?
You should end up with a report evaluating your idea and the business opportunity.
You can also develop something around the idea that has value such as a business plan, or contracts, MOIs (memorandum of intent to purchase) or actual sales.
If you are going “Huh??” – don’t worry. Stick around at Ready Set Startup and we will step you through this in simple, easy to understand chunks. The value of it is that by going through this process you will have developed something of real value that is saleable. And its easier than you think. At the very least, you will learn which ideas are profitable, how to make them as profitable as possible, and what investors are looking for when they invest in an idea.
If you still decide to sell your idea to try and sell your idea, be prepared for a very small percentage of the profits (1 – 5%). But who knows? You might decide that since you’ve come so far, you might as well keep going and become an entrepreneur!
If you have enjoyed this post and want to know the next steps to turn your good ideas into a great business, you will be interested in my free Startup Blueprint: 5 Steps to launching your 6 figure business
Grab it here. It’s free!