Ask YC: How would you sell your business?

Hi. We have an existing software business (provision of encryption software) that brings in a good level of regular revenue but the income at the moment isn't stratospheric (We're bringing in around $120k per year). In the right hands this business could increase, but my main goal is I'd like to concentrate on a new startup and don't feel I can do both. I appreciate that most people wish to sell their business for millions, but if you were after something in the region of $400-$500k where would you look? How would you do it without causing problems (ie people thinking you're up for sale)? This is not something I've ever done before so would really appreciate any advice from anyone who has done this kind of thing before.

Thanks for any input

Inc magazine has a section for advertising deals like these, I think. They at least feature one of these each issue.

Curious... what kind of expenses do you have selling software that the income on 120 revenue is bad?

Kiko, previous startup of justin.tv founders, was sold on ebay.

But I would not advise that for your startup, since I don't think you would be able to get enough attention to it from the right people.

I think the best idea is to figure out who the best people to buy your startup are. Either because they can leverage the product best or because they are your competitors or because they have enough money and interest in your space. Then start conversations with them.

Some people use investment banks or hired investment bankers but you need to be looking at a higher valuation to interest those.

Looks like his gross revenue is higher from what he's saying and that 120k is net?