You have a great business idea and you want to sell it to someone who would have the resources and the time to bring your idea to life. It is extremely common for entrepreneurs to develop business ideas and then sell those ideas, but how do you go about it and make a profit?
The concept of selling a business idea sounds easy, but it is actually quite complicated. If you do not attend to all of your details, then you may wind up unknowingly giving your business idea away instead of selling it for a profit.
Create A Comprehensive Idea
If you want to sell a business idea, then your customers need to know exactly what you are selling. Many entrepreneurs will want to put their own twist on your idea, but your basic presentation must include:
- A complete outline of the business idea and the production methods used,
- A description of the market need the business addresses,
- A comprehensive report on the initial target audience and why that audience is the right choice,
- Budget and revenue projections for at least the first three years of operation.
Information such as marketing ideas and sales procedures can be included, but your buyer will normally want to use their own ideas in these areas. It is easier to sell your business idea when your presentation is comprehensive.
Get All Of Your Paperwork In Order
If you do not register your business idea, then you do not own it. Logically, you cannot sell something you do not own. That is why it is critically important to file all necessary paperwork before you start presenting your idea. Some of the filings to consider include:
- Patents in each country where you intend to do business so that your business idea is legally recognized as your property,
- Trademarks for any business slogans, logos, or other identifiers associated with the business idea,
- Copyrights in each country you intend to do business that protect all of the documentation and written materials associated with your business idea.
If you pitch your idea to a potential buyer in Australia and you do not register your idea in the United States, then your buyer could use your idea to start a successful business in America. You can prevent that from happening by hiring a qualified patent and trademark attorney to protect your idea.
Have Working Models Or Demonstrations Available
Even the most comprehensive written business idea can be difficult to sell because potential buyers cannot picture how the idea or product would work. Before you start pitching your business idea, you should have operational models of your product built, or videos professionally produced that show how your service works.
These tangible demonstrations will make it much easier for a buyer to understand your idea and will increase your chances of making a sale.
Always Get A Non-Disclosure Agreement Signed By Each Person
You spent an entire afternoon pitching your idea to a prospective customer, but they show no interest in your idea. Three months later, you notice that the customer who showed no interest has started a business using your ideas and they are doing quite well.
To prevent people from stealing your ideas, you need to add the extra layer of protection offered by a non-disclosure agreement.
An NDA gives you the right to sue anyone who uses any of the ideas in your sales pitch without getting your permission first. If your presentation and idea are documented properly, then your NDA can help you to protect that idea against people who do not want to pay for it.
There are many successful entrepreneurs who spend their time developing business ideas that they sell to people who want to bring those ideas to life.
If you want to sell your business idea, then take the time to develop an idea that is easy to present and make sure your protect yourself from dishonest people.