How to Sell Pre-Revenue Businesses

Hey, thanks for joining for another week of New Venture Weekly.

Loads of people want to run their own business and considering you’re subscribed to this newsletter, maybe you do as well.

But not everyone has the time or knowledge to do it.

Creating and selling pre-revenue businesses (or as I like to call them Businesses-in-a-Box) can lower the barrier to entry and simplify launching a business for a lot of hopeful entrepreneurs.

Before we jump in, I want to make these idea breakdowns more interactive, so feel free to respond and let me know your thoughts on this business idea. Would you start a business like this? Would you buy a pre-revenue business? I’d also be keen to hear about what projects you’re working on right now. Let’s talk!

Ok, now let’s jump in!

🗞️ Things worth checking out

The best businesses solve specific problems. I’ve created an ever-expanding database of problems that are begging for a better solution.

Are you tired of wasting time and resources on business ideas that just don’t stick? It’s not because you’re not smart or hardworking - it's because you’re not focused on solving the right problems.

This database takes the guesswork out of entrepreneurship. Instead of sifting through endless ideas, you’ll have access to a curated list of high-potential problems that are begging to be solved.

Here's what you get:

• Problems & pain points

• Potential solutions

• Competitive analysis

• Research to back it all up

Benefits:

• Focused Strategy: Direct your efforts toward problems with proven demand and strong potential for success.

• Time Savings: Cut down on research time with ready-made competitive analysis and research.

• Lifetime Access: As new problems and opportunities emerge, you’ll be the first to know, without paying a penny more.

🗂 Overview:

Every new subscriber to this newsletter gets sent a welcome email that contains a survey - of all the respondents, 62% say their biggest challenge when starting a new business is limited resources (time, money, support).

The "Business in a Box" idea is a concept where a business is designed to be extremely easy to start, operate, and scale.

The idea is to package everything someone needs to run a business (tools, processes, marketing materials, supplier contacts, software, etc) into a single, ready-to-go package.

This concept can appeal to aspiring entrepreneurs who want to start their own business but may not have the knowledge, experience, or time to build everything from scratch.

The idea isn’t too different to buying a franchise (McDonald’s, Pink’s Window Cleaning, etc) or buying a business from sites like Flippa or Acquire.

The advantage is that these businesses are much cheaper (normally $1-5k).

⭐️ Examples:

• Prerevmarket.com - A marketplace to buy and sell pre-revenue businesses.

• Code Canyon - Buy ready-made SaaS websites

• Microassets - Buy and sell small startups, newsletters, app, SaaS and more

• Flippa - Buy and sell websites of all sizes including starter sites and pre-revenue businesses.

👎 Problems:

What problems this solves:

• Lower Barrier to Entry: Provides all necessary tools, training, and resources to start quickly without prior experience.

• Reduced Risk: A tested business model with proven success minimizes the risk of failure.

• Simplified Setup: Offers a streamlined, turnkey approach to launching a business.

• Cost-Effective: Often more affordable than buying an existing business or starting from scratch.

• Support and Guidance: Ongoing support from the provider helps with operations, marketing, and growth.

• Focused Effort: Allows the entrepreneur to focus on execution rather than development.

• Scalable: Designed for easy replication and scaling as the business grows.

• Access to Supplier Networks: Often includes pre-established supplier relationships, saving time and effort.

Challenges with the business model:

• Cookie-Cutter Nature: One of the main criticisms is that "Business in a Box" solutions can be very generic, lacking uniqueness in a crowded market.

• Dependence on Provider: Businesses can become too dependent on the provider for updates, support, and inventory.

• Skill Development: While it’s easy to get started, the model might not encourage entrepreneurs to learn essential business skills deeply, which could be a drawback in the long term.

• Quality Control: If many people are using the same businesses the quality and customer experience can become inconsistent.

• Scalability: Some models may not be easy to scale beyond a certain point, especially if the core product or service becomes saturated or commoditized.

All of these challenges can be overcome by selling business kits that focus on quality and experience.

🧐 Opportunities:

E-commerce Dropshipping: These businesses might include a curated list of products to sell, a pre-designed Shopify or WooCommerce store, marketing templates, and access to suppliers willing to drop ship directly to customers.

Print-on-Demand Stores: Includes a fully functional Shopify store, fully configured print-on-demand service, product designs, templates, marketing materials and marketing strategies.

Service-Based Business Kits: These might include software and hardware required to start a service business (like a cleaning business, pet grooming, mobile car detailing, etc.), marketing materials, and operational guides.

Newsletter Kits: This would include branding, marketing materials, marketing strategies, newsletter content, and software to run the newsletter (like Beehiiv).

AI Kits: Fully functional AI websites for certain applications like product images, AI voice cloning, AI face swapping, and AI video generation. Includes full guides on how to run the business, marketing materials and strategy and technical support post-purchase.

🛠 How to Build:

Key Elements

• Turnkey Solution: All-inclusive setup with essentials like website templates, branding, supplier contacts, and fulfilment partners.

• Low Entry Barrier: Easy to start with minimal investment or expertise, making entrepreneurship accessible.

• Scalability: Provides growth tools and resources to expand as the owner develops skills.

• Comprehensive Support: Offers ongoing help through customer service, training, community forums, or mentorship.

• Automation and Templates: Includes automation tools and ready-made templates to simplify operations.

• Marketing and Sales Playbook: Provides strategies and scripts for effective marketing and sales.

• Plug-and-Play Technology: Simplified tech setup with no coding needed, featuring integrated payment systems, inventory, and CRM tools.

1. Identify Target Niches

• Research and select specific niches with high demand (e.g., personal trainers, real estate agents, e-commerce stores, local restaurants).

• Focus on niches that require minimal customization and have similar business needs.

2. Create Turnkey Website Templates

• Design high-quality, customizable website templates tailored to each niche.

• Ensure templates include essential features (e.g., e-commerce capabilities, booking systems, portfolio galleries).

• Make templates visually appealing and mobile-friendly.

3. Bundle Essential Business Tools

• Include key business tools and integrations (e.g., email marketing, SEO tools, social media management, payment gateways).

• Partner with software providers to offer trials or discounted services as part of the package.

4. Develop a Comprehensive Onboarding Process

• Create a step-by-step onboarding guide to help customers set up their websites quickly.

• Include video tutorials, checklists, and FAQs to simplify the setup process.

• Offer live chat or support to assist customers during the setup phase.

5. Offer Additional Services and Upsells

• Provide optional add-ons such as custom domain registration, premium design customization, ongoing SEO services, or advanced marketing packages.

• Introduce upsells during the purchase process and after initial setup.

6. Build a Community and Support System

• Create a community forum or social media group for customers to share tips, ask questions, and get support.

• Offer mentor programs, webinars, live Q&A sessions, and training workshops to help customers grow their businesses.

7. Implement a Subscription Model

• Offer ongoing website maintenance, hosting, and updates as a subscription service.

• Include access to new templates, exclusive tools, and regular training as part of the subscription.

8. Market the Business Effectively

• Develop a targeted marketing strategy, including content marketing, social media advertising, and partnerships with industry influencers.

• Use case studies, testimonials, and success stories from existing customers to build credibility.

• Run promotions or offer discounts to encourage early adoption.

9. Collect and Leverage Customer Feedback

• Gather feedback from customers to continually improve templates and services.

• Use feedback to develop new features, templates, and add-on services that meet customer needs.

10. Scale and Automate

• Automate repetitive tasks like customer onboarding, billing, and support ticket management.

• Use analytics to identify high-performing niches and focus marketing efforts on those areas.

• Expand offerings to additional niches based on demand and feedback.

🚀 How to Grow:

• Business Newsletter: Start a business/startup-focused newsletter where you send case studies, marketing strategies, growth hacks and business frameworks.

• Build a Community: Create a forum or social media group for customers to share insights, ask questions, and connect.

• YouTube Channel: Post tutorials, customer testimonials, and niche-specific business advice to attract and educate potential customers.

• TikTok/Instagram/Twitter: Share short, engaging videos and posts showcasing your website templates and customer success stories as well as business advice and strategies.

• SEO: Optimize website and blog content for niche-specific keywords to drive organic traffic.

• Lead Magnets: Offer free eBooks, checklists, or tools related to starting a business to capture emails and generate leads.

• Business Mentorships: Partner with industry experts to offer mentorship sessions that add value and attract more customers.

• Free Courses: Provide online courses teaching niche-specific digital marketing and website management to establish authority and attract leads.

• Content Marketing: Write blog posts that solve common niche problems and showcase your expertise and solutions.

• Paid Ads: Run targeted ads on Google, Facebook, and LinkedIn to attract specific niches likely to need your service.

• Referral Program: Create a referral incentive program to encourage satisfied customers to recommend your service to others.

• Case Studies and Testimonials: Showcase real customer successes to build trust and prove the effectiveness of your solution.

• Email Drip Campaigns: Nurture leads with automated emails that educate and guide them toward purchasing.

• Podcast Appearances: Guest on relevant podcasts to share insights and promote your business to a niche audience.

🔥 Cool Stuff

(Bookmark these)

• Increase your sales & attract more clients with a done-for-you newsletter & lead magnet - check it out.

• Want to grow your business? Here’s a database of tools that can help.

• Want to promote your startup for free? Here’s a database of free places to promote your startup.

• Want to turn your idea into a business? Check out this business idea checklist.

• Want to differentiate from your competitors? Check out this Differentiation Strategy Guide

• Want to run ads for your business? Use these proven psychological ad positioning strategies.

🤯 Recommendations

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