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MenuShould I sell the technology or build a business around it instead ?
Answers
License them the idea. Retain ownership.
Did they flat out SAY "Yes, we want this; if only we or someone else would develop it?"
You can hire support teams, you know. I wonder if you are letting a few shadow issues stand in the way of a good order.
Build a business around it! Worse thing that could happen is you try and end up having to sell it afterll. If your solution is innovative and provides value innovation plus:
1. focus
2. compelling tagline
3. divergence from other products
you can build yourself a niche product that targets a very specific set of needs and promote it very easily and clearly.
My name is Humberto Valle, an Arizona based true strategist. I have helped individuals and companies alike develop clear objectives and paths to achieve them incorporating current resources, marketing and operational efforts as well as key partnerships.
The other 2 answers (so far) have very good points. But it really depends on what the offer is. My strategy would be to get an actual offer from them and then review the different options. The fact that you have an offer from a company would be very enticing for investors to put money into it for you to build out, if you decide.
This is exactly the strategy I utilized in my own company. We built a solution for one client as a consultant. Wasn't meant for it to be distributed. This client shared what we build in a large conference and we started to get flooded with offers for us to build other clients a similar solution. When this happened, the major player in the industry came along and offered to purchase the solution. We got them to give us an offer and negotiated to a higher price but it wasn't good enough. We used their offer to fundraise and was able to get the company to a valuation 10 times the original offer only 2 years into it. Having said that, if we received a higher offer in the beginning, we probably would've sold it.
I'm a tech entrepreneur (just started another company) that started my career in management consulting. Feel free to reach out if you have further questions or needs.
Take them on as a partner with a reasonable split...that is if they have the money to invest in developing it. They will be responsible for development and marketing. There are other options.
Bootstrap. Read "How To Get Rich" by Felix Dennis. Or better yet just remember the camel's nose in the tent story.
Listen, in any business you have to take some chances and some risks. Make sure you don't need a license and go for it. Remember, timid business people have skinny kids. Paraphrased from Zig Ziglar.
I am not trying to sell you on calling me. Really, I am pretty busy with my businesses and consulting. However, I need more info before I could have a greater impact in helping you.
Ask, Ask, Ask, then Ask again.
Bonus:
Here is $10,000 worth of information for free and in a nutshell.
Concentrate on the 3 M's. There are actually 7, but 3 will do for now. These are Market, Message, and Media. They come in that order.
Who is your target market (customer, clients, buyers, users, etc.)?
Tailor your laser focused message for this target market.
What is the best media mix to get your message to that market?
Here's what you do...first, make it an offer that is so incredible that they cannot resist. Secondly, do all the work for them. Make it so easy to make the purchase now that they can do it virtually without effort. Thirdly, give them an incentive to act right now. Fourthly, offer an almost unbelievable guarantee. Fifth, offer a bonus for acting now. There are many other incredible steps, but these steps should help the novice to the professional sell anything.
Whether you are selling B2B or B2C, you have to focus on selling to only one person. You can actually sell to one person at a time while selling to millions at a time. They are one and the same. Don't get off track, what we call digital marketing selling is just selling in print. And that has not changed since Cluade Hopkins wrote "Scientific Advertising." Really long before he wrote the book.
The secret to success: I have had the pleasure of knowing and working with some of the biggest names in business, celebrities, actors, entrepreneurs, business people, and companies from startup to billion dollar operations. The number one reason for their success is doing what they know and love while doing it in new, creative, and innovative ways.
Ask, Ask, Ask. Have thick skin and learn from each "mistake." In a short while, the market will tell you what you need to do and who and what you need to ask. But get started now even if that just means asking a contact on LinkedIn.
While you are thinking, think big and think of something at least 1% better, newer, or different. And being cheaper is not a winning strategy.
Make decisions quickly and change decisions slowly..unless you are actually going off a cliff.
Remember these two 11 letter words...persistence and consistency. They are two of the most important tools ever invented.
Treat everybody you talk to and everybody you meet (including yourself) like each is your number one million dollar customer.
Best of luck,
Take massive action and never give up.
Michael
Michael Irvin, MBA, RN
What are your ambitions? Why not sell it outright? What would your concern be?
Why not start a company? What would your concern be?
Could you do something different licence the technology out for a year? Could you do something like charge a variable cost to them to keep your upside?
The challenge with your question is that you are asking us to tell you what is right for >>you<<. Unfortunately we don't know enough about you yet to give the right answer.
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What exit strategies do angel investors want/prefer for a service business?
Keep in mind that investors invest for returns. Telling a prospective investor that you want his or her money to grow your business but don't plan on ever generating a liquidation event that pays him or her a dividend is not likely going to work; angel or not. You may be better served with debt financing where returns are generated in the form of interest payments not equity value growth. BUT, if equity financing is the plan, you're going to want to develop a strategic exit plan right from the start. That means identifying prospective buyers, strategic channels etc and characterizing the value drivers for each right up front. You'll find prospective buyers come in a number of forms; competitors, bigger versions of you, strategic partners, private equity, etc. Each will value your business in different amounts for for different reasons. Understanding this is vitally important for you to navigate to securing the right money, from the right sources, with the most favorable terms. Once you've qualified and quantified each of them, then determine what (specifically) you're going to need to do to align your business with those prospective buyers generating the highest returns. This will drive your business model and go to market strategy and define your 'use of funds' decisions. This in turn result in a better, more valuable business whether you exit or not. Do it this way and you'll have no trouble raising money from multiple sources. You can learn more about the advantage of starting with a Strategic Exit plan here: http://www.zerolimitsventures.com/cadredc Good luck. SteveSL
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How to sell a service based company?
YES! You certainly can sell a services business; and, if it is positioned and prepared properly, for pretty great returns too. There are a number of different exit strategies available to you, not ALL of them acquisition. For instance; we have helped service business owners transition (exit) from their business without selling the business, but instead by retaining a minority interest and receiving large (7 figure) royalty checks for years after their departure. That said, IF acquisition is what you want each of the dozens of strategies available to you really begin with identifying prospective buyers, understanding their motivation for acquisition and pivoting your company into alignment with those motivations. I explain the process in more detail here: http://www.zerolimitsventures.com/cadredc Hope this helps! Good luck. SteveSL
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Best sales funnel to scale $47 fitness infoproduct?
Scaling with paid/cold traffic is a very different kind of beast. Depending on your paid traffic source their motivations and behavior is different than that of a house list or affiliate / JV traffic. Usually paid (cold) traffic is more difficult to convert with a $47 initial offer. I've had success warming up this type of traffic, with clients of mine, before asking for that level of sale. There are some exceptions to the rule depending on how rabid your market is to buy, but the fitness niche is usually more skeptical. You can warm them up by starting with an email opt in to a lead magnet then present them with your $47 sales offer, theres a side benefit to this as well. The other way to warm them up is to start with a survey leading them into a customized VSL to your $47 product. There's also some major benefits here if you segment your traffic right. As far as after the initial sale in regards to the backend funnel itself my typical flow looks like this: Sales page > Up Sell #1 > Down Sell #1 > Up Sell #2 > Thank you page. However some of my clients have much more than 2 up sells in place in some funnels. The trick is that your up sells should flow logically to each other. Meaning make your first up sell a product that gets your target market to their desired solution faster and easier with the up sell. For your down sell, you can keep the same product / offer but lower the price or offer a payment plan. Hope this helps, let me know if you have any questions.BH
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What should my consulting rates be as a freelance developer who can also do SEO, social media optimization and other marketing services?
Pricing for different tasks that require the same amount of time from you tells the Customer (and your subconscious) that you're working at a 5 on task x, but working at a 9 on task y simply because it costs/earns more. That seems to be a disconnect. Your time is your most precious asset, and I would charge for it whatever you're doing. If you build a site, and they are happy with your dev fee, but feel like you should charge less for SEO, simply let them find another SEO guy. That's their choice, but YOU are worth $xx.xx, no matter what you're doing. Also, in general, take whatever you're charging and add 10% to it. If you're still busy, add another 10%. Let the demand level determine how much work you do, and at what cost.SL
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What's a reasonable profit margin on merchandise?
Are you the manufacturer or reseller? If you are the reseller, typically about 40-50% above cost. Use the MSRP as an indicator.ZR
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