3 Steps for Selling Your Business Idea in South Florida

If you own and operate a business, it’s simple to think about ways in which you could eventually sell that business. You have already established a product and/or service that you’re offering. You have set up a stable base of customers. You have proven revenue, expenditures and other financial statements. Now, all you need to do is find a buyer.

But what if “all” you have is an idea? It’s true, every great business starts with one simple idea, and there are plenty of people who have a mind for great ideas but lack a stomach for true entrepreneurship.

Can you sell an idea, though, without ever going into business around that idea? Will someone else be willing to pay for your idea and then make it his or her own?

Believe it or not, the answer is yes. You can absolutely sell an idea to someone who will then take it and turn it into practice. If you think you have a great idea for selling a business, there are important steps you need to take to protect yourself, and your idea, and get you ready to make that sale.

Here are the three main steps for doing so:

STEP 1. Do Your Research

Even though you may not want to actually get into business, you will still have to do some work if you plan on selling your idea. The first thing you’re going to have to do is to conduct extensive research.

This includes gathering as much information as you can about the market for your idea, whether it’s a completely unique idea or a fresh take on something that’s already available, how well your would-be competitors are doing and even what the feedback on your product and/or service is. This last part can be accomplished through a “focus group” of friends and family, even.

Next, you’ll need to do some information gathering on whether your idea can be protected legally through a patent. At the same time, you’ll want to make sure your product won’t infringe on other patents out there.

Finally, prepare information about how your product could be manufactured, including the materials, the cost and potential locations. All of this information will be essential when proceeding to …

STEP 2. Make a Presentation

If you’ve ever seen the show “Shark Tank,” you’ll know what we’re referring to here. The next step in selling your business idea is to prepare a professional presentation to pitch to potential buyers.

Similar to the “Shark Tank” contestants, you’ll want to come prepared to wow potential buyers. You’ll need to describe the problem people face today, how there’s nothing on the market to solve that problem and how your product/service can come to the rescue and be these people’s hero.

You may decide to create artistic posters or interactive slideshows, and an official written business plan you can present. Make sure you include information on the problem your product/service solves, research you’ve done on the market, any focus group data you have and also the process by which the product/service can be manufacturer and/or deployed.

Unlike “Shark Tank,” you won’t be looking for an angel investor to pump money into your business; you’ll be hoping someone will buy your idea outright.

STEP 3. Find Potential Buyers

If you have an idea you want to sell, the onus of finding buyers will be completely on you. That’s because you don’t have a business operating that is being marketed to the outside world. Your entire “business,” at this point, is in your head.

As such, you’ll need to do the legwork to investigate what people or companies would be prime targets to purchase your idea and run with it. You’ll want to come up with as extensive a list as you can. Cast a wide net in hopes you’ll catch at least one fish.

This list could consist of entrepreneurs you know or have heard of in the space, other companies currently in business that could benefit from adding your idea to their repertoire or people you know or can meet through networking groups or professional organizations.

Once you’ve created this extensive list, it’s time to start making your pitch. For the people you know personally, or can be introduced to, reach out directly and explain to them you want to make a pitch.

For those you don’t know, send a formal letter outlining that you have an idea you think would greatly benefit them and/or their business, and request a few moments of their time to fully explain it.

Once you’ve landed those appointments, it’s time to make your pitch. Be confident in your idea, and let that confidence shine. Who knows. You may just be able to sell your idea without putting it into practice.

Sunbelt Business Brokers of West Palm Beach can help you prepare to sell your business in South Florida, guiding you from listing to closing.  If you’re considering selling your business, get in touch with us today for a confidential, no obligation conversation.