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Your post struck a chord. About a month ago, after almost two years of running a small start-up, I made the decision to sell or close. The product had reached a plateau, and I realized that I didn't have the resources -- and more importantly, I no longer had the interest -- in pushing the product further along. It still has a ton of potential -- just for another organization. The first thing I did after making my decision was inventory every salable asset -- the product, domain names (absolutely, sell those!), databases, intellectual property. The second was to write up a five-page prospectus that covered the basics -- what was for sale, the product's history, the product's numbers (how it was doing with users, etc.), revenue, and potential revenue. Armed with that, I approached companies I believed might be interested in acquiring (and let others in my industry know that I was planning to sell, if possible, or close, if not). If a company indicated it was interested, I sent the prospectus and answered follow-up questions. I am now in discussions with one serious potential buyer. Re: Question #1, you have to forget how much time you've put into the product. Unfortunately, no sale price is going to recoup your hours. Depending on your product, its potential, and your industry, a sale price will likely be based on the value of your assets and/or multiples of income. |