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In 2012, Nick D'Aloisio, a 17-year-old entrepreneur, sold his news summary app Summly to Yahoo for a whopping $30 million. This story showcases how smart ideas can be profitable. Nick’s app used algorithms to distill thousands of news articles from around the web into only a few sentences in summary form. If you are wondering how to sell an idea and plant your flag in the business world like Nick, this post is for you.
First, you need to make sure you have a well-prepared idea before considering how to sell it. A well-worked-out idea must be clear, innovative, and viable. An idea's success often hinges on how well it has been throughout. Thorough research means analyzing the market, competition, and prospective customers for your business.
Take Google, for example. Larry Page and Sergey Brin spent years making their algorithm for search before they went to investors. Of course, without thorough preparation, you might be laughed at every time you share your idea.
Another critical component would be to build a prototype or a minimum viable product (MVP). Nick sold his idea as a fully developed product –but if you are a cash-strapped innovator at least have an MVP.
The MVP demonstrates the idea's functionality and potential and thus makes selling it easy. According to Forbes, with a prototype, the chances of getting funding increase significantly.
Pitching is an art. It is the art of storytelling, with which one captures interest and woos investors/other stakeholders when selling ideas to companies. Guy Kawasaki, one big name in Silicon Valley venture capital, once said: "The purpose of a pitch is to stimulate interest, not to close a deal."
Here is how to pitch an idea. Start with what will grab the attention of the marketplace. Outline the problem that this idea solves, your solution, and why your approach is unique. Use data and revenue projections in line with the above. For example, if you are pitching an idea that reduces food wastage, present data on food wastage, showcasing current and future projections.
Practice pitching even when you don’t have a pitch scheduled. This is what billionaire entrepreneur and Shark Tank investor Mark Cuban says in his book. "You should be able to pitch your idea in your sleep." That’s how to sell an idea. Your confidence and clarity can make the greatest difference.
If you are trying to protect your idea in today's business environment, that basically means saving your intellectual property (IP) from being copied or stolen. But how does one protect an idea effectively?
First of all, know the various protection forms for your intellectual property. You’ll have to choose between copyright, patent and trademark.
Copyright is reserved for original works of authorship, such as books and music. A patent protects new inventions and an invented process, and a trademark protects a brand name or logo. Thus, it is essential to know the difference between copyright, patent, and trademark in order to choose the most appropriate method when selling ideas to companies.
For instance, Apple's iPhone is patented, and the company has its trademark Apple sign. Nowadays, the odds for companies protecting their intellectual property are 40900 times higher.
In case you have an invention, you will definitely want to learn how to patent an idea and sell it. The procedure of getting a patent is, at times, long-winded. However, if you protect your business with a patent, you will be glad you did it.
First, do a patent search to ensure that your idea is unique. Then draft a detailed patent application explaining how the invention works and stating its benefits. According to the United States Patent and Trademark Office, a well-prepared application can significantly increase the chances of approval.
Once you have a patent in your hands, you may license your idea to organizations or sell it flat out. Most of the time, selling ideas to big organizations like Google or Microsoft is highly compensated. For example, take the instance of how the founders of WhatsApp sold their app to Facebook for $19 billion as an epitome of how a brilliant idea, well-patented, could reward its owners.
Selling an idea requires preparation, a compelling pitch, and proper IP protection. Use the above advice to package and profit big from your idea as an entrepreneur. And if it doesn’t work out the first time, just try again. Don’t give up.
In 2012, Nick D'Aloisio, a 17-year-old entrepreneur, sold his news summary app Summly to Yahoo for a whopping $30 million. This story showcases how smart ideas can be profitable. Nick’s app used algorithms to distill thousands of news articles from around the web into only a few sentences in summary form. If you are wondering how to sell an idea and plant your flag in the business world like Nick, this post is for you.
First, you need to make sure you have a well-prepared idea before considering how to sell it. A well-worked-out idea must be clear, innovative, and viable. An idea's success often hinges on how well it has been throughout. Thorough research means analyzing the market, competition, and prospective customers for your business.
Take Google, for example. Larry Page and Sergey Brin spent years making their algorithm for search before they went to investors. Of course, without thorough preparation, you might be laughed at every time you share your idea.
Another critical component would be to build a prototype or a minimum viable product (MVP). Nick sold his idea as a fully developed product –but if you are a cash-strapped innovator at least have an MVP.
The MVP demonstrates the idea's functionality and potential and thus makes selling it easy. According to Forbes, with a prototype, the chances of getting funding increase significantly.
Pitching is an art. It is the art of storytelling, with which one captures interest and woos investors/other stakeholders when selling ideas to companies. Guy Kawasaki, one big name in Silicon Valley venture capital, once said: "The purpose of a pitch is to stimulate interest, not to close a deal."
Here is how to pitch an idea. Start with what will grab the attention of the marketplace. Outline the problem that this idea solves, your solution, and why your approach is unique. Use data and revenue projections in line with the above. For example, if you are pitching an idea that reduces food wastage, present data on food wastage, showcasing current and future projections.
Practice pitching even when you don’t have a pitch scheduled. This is what billionaire entrepreneur and Shark Tank investor Mark Cuban says in his book. "You should be able to pitch your idea in your sleep." That’s how to sell an idea. Your confidence and clarity can make the greatest difference.
If you are trying to protect your idea in today's business environment, that basically means saving your intellectual property (IP) from being copied or stolen. But how does one protect an idea effectively?
First of all, know the various protection forms for your intellectual property. You’ll have to choose between copyright, patent and trademark.
Copyright is reserved for original works of authorship, such as books and music. A patent protects new inventions and an invented process, and a trademark protects a brand name or logo. Thus, it is essential to know the difference between copyright, patent, and trademark in order to choose the most appropriate method when selling ideas to companies.
For instance, Apple's iPhone is patented, and the company has its trademark Apple sign. Nowadays, the odds for companies protecting their intellectual property are 40900 times higher.
In case you have an invention, you will definitely want to learn how to patent an idea and sell it. The procedure of getting a patent is, at times, long-winded. However, if you protect your business with a patent, you will be glad you did it.
First, do a patent search to ensure that your idea is unique. Then draft a detailed patent application explaining how the invention works and stating its benefits. According to the United States Patent and Trademark Office, a well-prepared application can significantly increase the chances of approval.
Once you have a patent in your hands, you may license your idea to organizations or sell it flat out. Most of the time, selling ideas to big organizations like Google or Microsoft is highly compensated. For example, take the instance of how the founders of WhatsApp sold their app to Facebook for $19 billion as an epitome of how a brilliant idea, well-patented, could reward its owners.
Selling an idea requires preparation, a compelling pitch, and proper IP protection. Use the above advice to package and profit big from your idea as an entrepreneur. And if it doesn’t work out the first time, just try again. Don’t give up.
