It has never been easier to sell a project you create, but the task is daunting when you first start planning. Many entrepreneurs get discouraged at t

How to Sell a Startup

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2021-06-13 21:30:05

It has never been easier to sell a project you create, but the task is daunting when you first start planning. Many entrepreneurs get discouraged at the process, but once you know the rhythm of the selling process, it makes the entire thing much easier.

At a minimum, you need at least some revenue to show that users are willing to pay for your project, but even a few hundred dollars MRR (Monthly Recurring Revenue) starts to become interesting as typically you can sell things at a multiple of your ARR (Annual Recurring Revenue).

SaaS businesses typically sell at that range for 2x - 3.5x ARR (depending on growth, customer count, margin, luck, and other factors), which means at the high end your business would be valued at $12,600. Not bad for something generating only $300 per month today!

The opportunity gets more interesting when you start to hit $10K MRR as the multiples you can sell for tend to increase a bit.

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