If you're not profitable then given the current state of the economy you're probably barking up the wrong tree. Most of the buying of startups happens in a bull market, so unless you have undeniable potential then there's a large chance that you'll be disappointed. Think of it like this: if you, the founders, want to dump it then why do you think any company would have enough faith to buy you?
Ask HN: Selling a Startup?
11–16 of 16 posts
Re: Ask HN: Selling a Startup?
#12Well it really depends on your space: Competitors: as long as you have more than one, and one of them is bigger than you(to afford the $100K). Customers: if some of your customers are big in the industry you serve, one of them might pick you up. Media Companies: look around to see if there is one that lacks a website in your space. Or you can setup a webpage for users to throw together a bunch of money, and then help…
i kind of liked the last option - i would say motivated crowdsourcing!!! the other option (which has become preferred option recently) is to sell 25%-50% to the new owner who will run and/or control the operations (and see how it goes) and u be there to provide training and support - this will gain the confidence of the buyer community that your business is real business and you're transparent about revenue and growt…
Don't get too excited. The last option is not legal.
Re: Ask HN: Selling a Startup?
#13Earlier quoted context omitted.
i kind of liked the last option - i would say motivated crowdsourcing!!! the other option (which has become preferred option recently) is to sell 25%-50% to the new owner who will run and/or control the operations (and see how it goes) and u be there to provide training and support - this will gain the confidence of the buyer community that your business is real business and you're transparent about revenue and growt…
#2 is interesting - hadn't thought of that approach - are you aware of examples of where this has happened?
i've seen few times on sitepoint - most of them are experienced buyers and they dont want to take any chances - there are many frauds and scams in web business as they inflate revenue and make a story which is too good to be true, of course one should have an eye for it to know that. also this practice is very common amongst small non-web businesses (convenience store, gas station, laundromat etc.) and now it is becoming popular on web as well...
Re: Ask HN: Selling a Startup?
#14If you're not profitable then given the current state of the economy you're probably barking up the wrong tree. Most of the buying of startups happens in a bull market, so unless you have undeniable potential then there's a large chance that you'll be disappointed. Think of it like this: if you, the founders, want to dump it then why do you think any company would have enough faith to buy you?
I'm a partner in this company. We are profitable and have very little expenses. To really take the product to the next level requires a larger dedication of time and/or resources then we are currently able to commit. A potential acquirer would be able to make that investment. We have essential put the product on the right path and taken it as far as we think we are capable, now it needs attention from someone who can take it a step further.
Re: Ask HN: Selling a Startup?
#15Well it really depends on your space: Competitors: as long as you have more than one, and one of them is bigger than you(to afford the $100K). Customers: if some of your customers are big in the industry you serve, one of them might pick you up. Media Companies: look around to see if there is one that lacks a website in your space. Or you can setup a webpage for users to throw together a bunch of money, and then help…
The last option is creative, but would it run afoul of securities regulations? http://www.sec.gov/answers/accred.htm
A horrible rule.
Re: Ask HN: Selling a Startup?
#16You come up with a price (value of your company). The buyer comes up with a value. If you can't decide on one or the other, get a third party, and the one that is closest to the third party wins. Works well, it's in the best interest of both parties to not under or over-value the company. Negotiators are a good thing to have.