6 min to read
How to sell your online business idea?: A complete guide for digital entrepreneurs!
As entrepreneurs, we always want to aim for more ambitious goals, achieve economic success with our business idea.
Whether you have time with your venture, or have a great business idea in mind, the most important thing is to know how to sell it to investors.
Online platforms have made it easier for us to start our digital venture, be it an e-commerce or a digital marketing agency, but with these facilities, competitors abound and you must find a way to make your idea stand out from the crowd.
Selling a business idea to investors is not just about our studies or the features that our company has, in fact it is a more meticulous job that consists of making a presentation that leaves them interested and willing to spend on your business in the shortest possible time.
Today at CodeDesign we will give you a complete guide to all entrepreneurs so that they can sell their business online in this year 2022.
Are you ready for success in business?
Well, keep reading!
Find the customer pain you can solve
Successful businesses help their customers solve their problems, or in that case, when they're too innovative, they show them a problem they didn't know they wanted to improve.
That is why when pitching or discussing your idea with investors, what you must have at first hand is the central problem or need that you will help solve with your idea.
When you answer this question, investors and you have an easier way to get the audience that will be willing to pay what it takes to get your product, and there you have a safe business.
In the movie "The Wolf of Wall Street", the character of Leonardo di Caprio manages to show how to sell a business in an incredible scene. He challenges his workers to sell him a pen, an all too common gadget. While everyone starts talking about his "qualities" Leo's character doesn't engage with any of them since attributes don't really sell, but rather how this pen will help you solve a problem.
Now "The Wolf of Wall Street" is based on Jordan Belfort's life, and there is no one better than him to show you how to sell a pen... Ceck it out!
Create an Elevator Pitch
Once you have a good understanding of the idea of your online business and the problem it solves, it is time to create your pitch.
However, we are not talking about a full 30-minute presentation, but about an elevator pitch, a speech that should catch the attention of investors in the duration of an elevator ride.
When you have your idea well studied, you really don't need much more than a minute to explain how great your business is, see it as a TikTok video that should catch the attention of your investors.
Key things to have at first hand when doing an elevator pitch:
- Name of your company.
- The problem it will solve and how it will do it.
After having attracted attention with this simple practice, can you expand with a more intense speech, or do you not think that you only need thirty seconds of presentation?
It is like when a movie's trailer is released: the elevator pitch will be the preview to the movie, raising the doubt and intrigue of investors and then, the full pitch must fulfill all the investor's expectations for your business.
A full pitch meeting should have:
- A story of a real customer that loved your business
- Your business model
- A Crystal clear presentation
- Your personal entrepreneur story
- Address who your competitors are?
- Show with numbers how profitable your business could be
- Show your online business idea
Show them what you got!
As we put in the things you need for a full pitch we mentioned that you need a real customer story, but this isn't the only thing, you also have to show to investors your experience in online business.
When you show business evidence like cash flow, testimonials, track records of customers and market research, investors will have evidence of your work's value and will be more likely to invest in it.
So take all your success stories and show what you are really capable to do with evidence.
But don't only talk about yourself, your team is important too. So show how capable your team members are and how they, with their knowledge and studies, will help your digital business to outcome any circumstances you may face.
Address who your competitors are?
It doesn't matter if your business is super innovative and nobody else has done it, you should always be aware of your competitors or those that may come.
In case you are getting into a "regular" business like real estate doesn't mean you can't stand out from the crowd.
In fact, by studying your competitors and seeing what their "cliche strategies" are, you can build an innovative strategy that puts your own spin on this whole business.
And what happens when you're the first of your kind?
Be aware, because if your business becomes a million-dollar idea there will be thousands of competitors that will appear to take advantage of your idea, so stay one step ahead of them.
Protect your business idea with a patent
As we said before, if you have created an innovative idea or a massive new product, there is a chance that investors can copy your idea and sell it as their own, unless you create a patent that protects the intellectual property rights of your product or service.
There are well-known ideas that didn't have patents, because of this their creators never got a penny for the use of their invention.
Do you want an example? Well, do you know about Daisuke Inoue, probably not, but his invention is more popular than you think because he was the creator of... The Karaoke.
That's right, due to not having created the patents, today we have all sung in karaoke and Daisuke hasn't received a penny for his creation.
So that this does not happen to you, it is good that you seek advice from a lawyer who knows about intellectual property so that before presenting your idea to investors it is already shielded by law, so if they want to use it they will have to tell you in his team.
Keep start-up costs low
We know that as entrepreneurs we want to fly with our businesses, but before even flying, you should learn how to crawl, and also, be more realistic about your investment prices.
Best investors are looking for businesses that keep a tight rein on costs and a focus on cost control, this is because, no matter how great is your idea, there is always a chance to fail.
Nevertheless, we don't like to think in worst-case scenarios, instead give you the best tips to make your online business the best it could be.
The idea is to factor in a financial buffer in operational and marketing budgets, but try to keep your costs as low as possible.
Address your weakness
In an article about "How to sell your idea (And yourself)", Clay Newbill, executive producer and one of the investors in reality show "Shark Tank", provides 6 ideas on how to sell your idea.
Among the tips we found, he says that is crucial to address our weakness as a business, instead of hiding it like it doesn't exist. This is crucial because investors aren't naive, and they could see a missing piece from miles away, even if you didn't see it at first. So, once they address your issue, you will have a solution ready to solve your business problem showing them that no obstacle will stop you from success.
Practice until it's natural
Nearing the end of the sale of your online product, the time has come to present your idea to investors.
For this you must practice all your pitch well until you have learned it by heart, that is, you know it from front to back and vice versa.
Add video resources and other presentations to make your presentation more striking, and once you have everything assembled start practicing in front of different audiences.
Many professionals recommend not spending all your bullets with your favorite investor, instead, it is best to practice with those of less interest so that by the time you arrive with the big ones you have already had enough experience pitching your business idea.
Make sure to show your product or service in real time experience so they know what you are offering.
Believe in yourself so others will
Quoting once again the article by Clay Newbill from Shark Tank, we would like to end this article by saying that the most important thing to start your business is that you have full confidence in yourself and your project, so that you can sell your online business idea with passion. and conviction.
All great business owners had to go through multiple rejections and falls, however, from each of these mistakes they have learned and have known how to get the best out of it to succeed in their next pitch meeting.
Keep learning and constantly improving, perseverance is what leads everyone to success in business.
If you want to support or boost your online business, at CodeDesign we offer you our professional support to take your digital business to the next level, contact us and let's materialize your goals!