How to Sell a Business Idea
How to sell a business idea is one of the most common doubts that entrepreneurs and inventors ask when they are preparing to develop their project: How do I sell my business idea? What strategies do I have to follow to achieve this? How do I get clients and investors to fall in love with my business idea?
The process is not an exact science, as every project and idea is different. However, there are some common keys that can be used for all types of ideas and that will help every entrepreneur to lead their business idea on the right path.
According to a study published by Forbes magazine, 80% of innovative ideas that fail owe their failure to poor communication. Therefore, knowing how to sell a business idea is even as important as the potential and innovation of the idea itself. The guide that you will find below will teach you the essential steps to develop your project, fill it with value and sell your business idea successfully.
1. Protect your business idea
Protecting your business idea is a fundamental step to follow before starting with the communication and sale of the idea. Patent registration and trademark registration protect your rights to the idea and allow you to safely manage the strategies to follow to sell your business idea. In Spain, the Patent and Trademark Office (OEPM) is the body responsible for the registration and granting of industrial property rights. According to the business idea you have in mind, you can protect your rights with the right type of registry for your project. Among them are:
- Patents and Utility Models: In order to register a patent or utility model it is necessary that the business idea is based on an innovative product that represents a novelty in the market . As we explained in the article The patent, a business tool its purpose is to prevent third parties from using the invention without the express consent of the inventor. This registry gives your business idea the protection to carry out the communication to sell the business idea without fear of third parties taking it over.
- Trademark registration: This type of registration protects the name and design or logo of your innovative idea. The trademark registration gives you the exclusive right to use a name, denomination or image of your business idea. In this way, no one can use your brand to sell other services or products. In the article Steps to register a trademark in Spain you can see how to carry out the process.
2. Do a market test with your business idea
Before launching to invest large amounts of money in your project, it is advisable to do a market test , that is, a first test in which the public knows your idea and you can measure the real interest that your business idea arouses. In addition, this first contact will allow you to show investors, companies and potential clients the potential of your business idea and show its characteristics and advantages. Depending on the business idea you have, the way you teach it to the public will be decisive.
Prototypes and 3D infographics: If your business idea is based on an innovative invention or product, it is especially important to show its characteristics in a visual and attractive way so that investors or potential clients can see the profitability of your idea at a glance. As we explain in the article Why a prototype can help you sell an invention the prototyping is one of the most effective and impressive face shapes investors to show your invention, as verified full functionalityincreasing confidence and interest in the business idea. In some cases, due to the complexity of the innovative product, the investment in the development of a prototype can be high. In these cases, the most recommended is to carry out a virtual simulation of the product or 3D infographic to attract the attention of investors and potential clients in a visual and realistic way. In the article 3D Infographics, an effective tool to develop your invention, you will find out how and why a 3D animation can help you sell your business idea.
3. Promote your business idea
When it comes time to sell your business idea, efficient communication will make a difference and lead to success. There are many innovative products and mobile applications that are launched on the market day by day, so positioning yourself among the most revolutionary and important ideas will make your business idea visible to investors, companies and customers around the world.
Once you have created the communication tools for your business idea: the 3D prototype or infographic and a web page, the next step is to make yourself known and position your product in the market. Communicating your idea in an appropriate and engaging way will allow it to reach the right ears. In the article 7 steps to successfully communicate your invention, idea or innovative project you will be able to delve into this topic.
The positioning that you achieve with your innovative product will add value to your business idea and will provide a strong base to attract customers or investors . Some of the ways to communicate the business idea are the following:
- Media: When national and international media report your business idea through reports, articles or interviews, the impact of the project increases substantially in a very short time . It is a showcase that can open the doors to great deals and agreements with different investors and clients.
- Social networks: Social networks are an inexpensive and accessible means to reach a very wide audience . Promoting your business idea, sharing the videos, photos of your prototypes and highlighting the advantages of your idea will make you visible to your target audience. In addition, you can contact through social networks with companies, distributors, manufacturers, investors or any potential client for your business.
- Innovation fairs : Participating in innovation fairs will allow you to expose first-hand the advantages of your business idea to the companies and investors of your interest. In order to arouse their interest, it is necessary to take advantage of the aforementioned communication tools, which will help the business idea to be clearly understood at a glance. Fairs are an ideal option to sell your business idea.
4. Locate the investment for your business idea
Finding out where the investment is for your business idea is essential to know who we are addressing and how we should communicate the project . As we explained in the article Financing alternatives for inventors and entrepreneurs, there are many ways and places to find this financing.
One of the most common ways to obtain financing is Crowdfunding , which is based on small financial support that people from all over the world contribute to make your business idea come true . The objective of Crowdfunding is to get enough investment to undertake , launch the business idea and launch the first units of your innovative idea, whether it is a product or an app, on the market. Again the communication of the idea plays a fundamental role to achieve credibility and arouse the greatest possible interest. To learn more about this financing route for entrepreneurs, do not miss article 10 keys to financing your invention, idea, patent or innovative project through crowdfunding
5. Address your investors and clients convincingly
Communication is a key factor in selling your business idea. The explanation of your idea on your website, the video of your product, your dialogue with companies at fairs and your speech to potential investors are just some examples of channels to communicate and promote your idea, so what you should keep in mind. The important thing in either case is that the language used and the clarity of the message are essential to open the possibilities of selling your business idea.
It is essential that in a short time, your potential client or investor detects the potential business that is in your idea . These are the keys that you have to take into account in your speech to be direct, convincing and clearly explain your business idea:
Your business idea is the solution to a problem or need: Defining clearly and concretely the problem or need to which your idea provides a solution, allows the investor, company or client you are addressing to locate in a market sector. You can see the viability of your idea and the possibilities of making it profitable.
Your business idea is more profitable than other solutions on the market: Highlighting the advantages that your innovative product has over others that are already on the market will make a difference in the eyes of investors. The innovation that your business idea implies will show the potential profitability of your idea.
Your business idea can demonstrate that it is functional: at this point, the prototypes or 3D simulations that you develop of your product will be essential to demonstrate that your idea is functional. Supporting the explanation of your idea with physical and visual evidence is the key to testing the viability of your business idea, you already know that an image is worth a thousand words.
If you are looking to start a business or want to sell your business idea. Then you should also know about financial projections for a startup.