Overseas, there are many cases of exiting services and products created alone as very small startups or side projects. (The transaction process is not as difficult as you might think.) Recently, Marc Lou told the story of how he sold his personal project service called Habits Garden on his blog. Overseas, individual entrepreneurs are called solopreneurs, a new word. If you have been interested in this, try searching with this keyword.
Startup Valuation: A Simple Formula
Valuation = Annual Revenue x 3
Example: A habit tracking app that generates $300 per month could sell for $10,800 (300x12x3)
Monthly Retention Revenue (MRR) can be scaled annually, but one-time payments cannot.
Example of point of sale decision
When running a business alone, can you increase your profits 10-fold in a year? NO
Am I still interested in this market? NO
Do you need money right now? Yes
=≫ Now is the time to exit your micro startup!
Acquisition process
Documentation: Write up LOI (Letter Of Intent), APA (Asset Purchase Agreement), etc.
Payment: Buyer secures payment through a third party such as Escrow.
Transfer assets: Transfer domain names, databases, credentials, etc.
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