Selling a Startup

I have invested a few years and thousands of dollars into a startup. I have a few thousand users. Unfortunately, little revenue. I believe the revenue potential is real, and I believe it is there. It's a long tail type of opportunity and I believe I'm 80% of the way to the goal line (seriously). My challenge is, my wife and I are about to have children and I'm not sure I'm going to have the time necessary to see this thing to the goal line.

Is it even possible to sell this startup? If so, where would I look for / talk with potential buyers? I feel like this is a really dumb question. Especially considering there is little revenue and a relatively small number of users. However, I truly believe that the data we've collected and has been provided by our users and the technology itself is pretty impressive. At the same time, I know a reasonable person will probably think I'm trying to sell a unicorn or magic beans if this is my proposition. For this reason, I feel like I'm stuck between a rock and a hard place.

Does anyone have any experience or advice on this? Thank you.

"little revenue" -> Your answer is no. In fact, probably the worst thing you can ever say about a company. You must get to a point where you can say, at least, "growing revenue".

The Internet is littered with ideas that generate no revenue, if you don't believe in your idea enough to follow it further, don't expect anyone else to, especially if the value is the idea only at this point.

I sympathise with the forthcoming kiddies issue, but if it's not your first child, it'll be your second, or you'll get flu for 4 weeks, or you have to move into a hotel for a week because the bathroom flooded and ended up in the kitchen. They'll always be something.

Most startups persist because the founder grinded the problem day in, day out. Unfortunately, the modern Internet age with its associated technologies make it easy to get to the stage you're at. If you're at 80% (which I doubt), then the investor would ask why the hell you won't finish the last 20%, babies or not.

I have 3 kids myself, oldest was 3 in March, youngest was born in Feburary, I work at home, it's living hell. Many a night I work until 2am, including weekends, and am up at 5am for the first riser.

I will moderate the typical "work till you drop" blah, though. You only get one round at your children's lives, and no company or amount of money or commercial success if worth missing it for, ever.

And please do link to what it is you've created, I think a lot of people avoid doing this thinking it'll be spammy. But the chances are very few of your customers will read it here. It might be worth breaking down your next key steps in your business into the biggest wins for the least effort. Even if you can't get to completion, focus on getting the business into the best possible state you can.

That way, although selling is unlikely, you might be able to get to a state where a co-founder will come on board for an equity state.

Since you're have little revenue then a 'financial buyer' is likely out so you're better off with a 'strategic buyer ' - basically someone whom may get more from your startup/users/technology than revenue.

Read that article for more ideas but only you know your market/startup so for example

• Is there a competitor who would like to have access to your users
• Is there a company who wants to get into your market
• Does your startup have any synergies with other companies (contrived example but if you've got software for designing business cards then a printing company could find that useful).

Getting a buyer will be very hard, its going to be very hard to convince a buyer your 80% of the way there, especially when you want out yourself. Even if you can sell your unlikely to get a good price.

It seems a partner would be better for you right now than a buyer. They can help you out with the extra 20% and you can both benefit in the longer term.

Recently I was listening this episode of Hanselminutes Minutes podcast. There was an interview with a guy who specializes in buying small nitche services and revitalize them. If nothing else, the interview was very interesting to hear the thoughts of a real buyer.

Also, in the episode's notes there are few links to blogs and podcasts of the interviewee Rob Walling.