What would you buy first? An idea that's working OR a working business?

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I was thinking recently to sell the 'idea' or information of the business I operate for $9,999.99 and a 5% stake of profits.

Why? I know there's people that can operate it better and I make 6 figs annually.

However, I don't try this because I know smart businessmen look at 'what is' not 'possibilities' .

However, it's interesting because we have to buy into our own ideas to even start a business.. therefore, ideas to me are more valuable.

Which would you buy first? An idea behind a business or a working business?

This is almost a psychological thing but I'd love to hear responses. Has anybody ever bought an idea? I have once.

Hope to see replies and hopefully I did write this out smoothly.
 
How about you give me idea for free in exchange for 5% of the idea of profit?

Seriously, I know this is harsh but just do it your f-ing self. I have heard so many people talk about selling ideas, but the reality is that no one is interested. Hard work, applied in the right areas, is the path to success. There are guys that get high all damn day that have ideas better than I will ever have - but they don't do anything with their lives, because they don't DO IT. They don't suffer. They don't struggle.

So take that idea and make it REAL. Take your dream and sculpt it. Do what Shia LaBeouf says. Become the damn president. Only you really give a shit anyways, or maybe you don't.

 
A working business already has infrastructure, a customer base and something to work with. An idea has nothing - no execution already implemented, so you are literally starting from scratch at every conceptual level.

"It's easier to buy revenue than to grow it" -Dan Peña

Now granted there ARE ideas so great and after doing the proper market research you know it make sound sense, but they are rarer than most people make it seem. Even if you have a great idea, like the 'computer mouse' (Xerox's team created it), doesn't mean it will go anywhere until execution (Apple came in and acquired the 'computer mouse' from Xerox).

Execution, hardwork, grit, and grind are more valuable than simply ideas. Anyone that's ever taken a shower has had some great ideas. Now if someone was able to build a working business and you do the research and see they are stuck cause of lack of resources, information, or experience and they want to sell (well they don't have to "want" to sell if you give them an offer they cannot refuse) - that's a better path towards success.
 
I'm talking about selling the idea of a working business however.

Giving someone the opportunity to replicate your business I guess..... with the idea.... that's already working
 
TLDR

Definitely would buy functioning business first. If for no other reason than to supply capital to get the "working idea" off the ground. it's like what my dad would tell my siblings that were interested in theater/music majors in college.

"get you a job that support the arts until the arts can support you"

can't believe i'm quotting the a-hole but he's right.
 
LOL.

Least your dad had a quote you can roll with. Only quote I remember from my dad is: "I used to tell my parents I'd never think that way.... but now I'm saying the same thing they said and later you'll be saying the same thing to your kids"

not even sure if I'm quoting that right.

Ironically. I'm not saying none of that. I'm living on a foreign island living like a Viking. He never saw me coming.
 
I'd venture to say most of the people here will answer "I'd buy a revenue stream, not the idea of one." Mainly because you're buying a lot of labor already completed within that package. It's going to cost more, but there are a lot of hidden values in there.

If you want to sell an idea, you can. There are people who are 8 and 9 figure bosses who do nothing but this, guru style. If you really provide value it's fine. But be prepared to have sold your idea to a few people who are going to become your competitors. There are some hungry animals out there who fall into the wrong path (guru stuff) but still come out the other side as leaders of the pack.

You may cannibalize your own business by banking on nobody adding action to the idea.
 
I remember the first business I had rolling on ebay..........

I learned I could make great money by selling product and then later.... selling the business model. I told people my idea was an internet franchise one day but i didn't even know what a real franchise was.. Only the 'idea' of a franchise however.. no false ads.

I had a product you could print, which I made via a self-made template that you could apply to whomever you saw 'hot' at the moment... (before you were getting sued left and right by celebs). I banked a little off it. Then the people who bought the business later, most of them, failed to go live 75% of the time.

I then realized you could resale a perfectly good business, completely and EASY TO FOLLOW but still, something would not connect for most.. No effort...lazy.... people have money but were lazy.

I've sold A LOT of great projects over the years.. Especially domains of tastemakers of the web.... :-x I sold people some of their best 'long term' small investments .. some I actually wish I didn't sell myself.

.Anybody building / selling domains.. Here's a free tip off.. Launch a 'Gonzalez Twins' website. They will be famous in years to come. Become the authority in search, it's an easy $50 to $200 extra per month off adsense I'd bet. And when they start getting more 'celebrity chased'... the rumors will go nuts.

Westbrook girls, Karrueche Tran, Draya, Blac Chyna.. Amber Rose.. all these girls that turn celebrity dames, end up being consistent earners b/c they are made to be scandalous and with that.. comes traffic...... and their thirst for fame, becomes your profit.

If i had time and money to invest in these smaller projects, I would but right now... my time's more valuable at the moment.... and a lot on the plate. However, things like this is what got me to where I'm at.

Freebie!
 
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Thank you @EyesExist for asking this question. I've been asking it myself many times lately. Basically, I'm 'scare' that I might loose money if I buy an established biz; and at the same time, I think I have an idea and capacity to start it from scratch...
Thanks @CCarter for your thoughts and the market research link.
 
Buy a working business any day! Most people (in most cases) wouldn't pay more than Monopoly money for an "idea".
 
I'd buy a working business over optimism (ie what you refer to as an "idea") any day. It'll just be under certain circumstances, with good management, in an industry I understand, and with a good outlook.

Basically, if I'm gonna buy the business for $100,000, I'd expect that I can get the $100,000 back in x years if the business fails. I'd also expect that it should make y% each year relative to the work I put in to find the business, the industry its in, and other considerations.

But... if you're selling your business operations for $10,000 and 5%, I don't expect much from the business. In fact, it sounds like you're just trying to find someone to run the business for you.

Let me give you an example: a rental property earns 5%/year in return on a $100,000 house. The capital here is $100,000, the tenants might already be living there, and the return is only 5%.

So, yeah dude, improve your idea.
 
EyesExist said:
I'm talking about selling the idea of a working business however.

Giving someone the opportunity to replicate your business I guess..... with the idea.... that's already working
Click to expand...

I get what you're saying. To explain it differently, the natural progression of what you're talking about is a licensing and franchising model.

Here's the thing, that just doesn't work for the vast majority of businesses. As others have said in several different ways, it's kind of a "Why would I pay you when I can do it myself?" type of thing. After all, the idea means nothing without the application. Where licensing and franchising works, it's typically because of well-established brands or gaps in industries.

At the end of the day, ruthless application of fundamentals is the foundation that creates success from ideas. I say, time to "hoist the black flag" and get to the ruthless parts.
 
If I'm understanding correctly, you're basically describing an MMO product?
 
I think it depends on what exactly you are selling - but I have purchased both in the past.

I would buy a proven system that was already working and could be applied to another location or industry. Similar to a franchise - but without the restrictions (more like a blueprint) if it was packaged up as a complete system. This would be cheaper than an established business, and would allow you to sell more than once.

Equally I also purchased and continue to purchase established online businesses because they have history, existing customer base and many of the initial time-consuming work already done.

So in summary I think both could work for you
 
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