How to approach buyers with your licensing opportunity

How to approach buyers with your licensing opportunity

How to approach buyers with your licensing opportunity
Make no mistake about it – there is no right or wrong way to approach buyers, but statistically, you can improve your chances of a sale by making sure that your proposal offers the best first impression.

Our recommendation is that you focus on three things: Professionalism, Being right ‘to-the-point’ and making sure everything is supported.

Professionalism: Make sure to use a terminology that is common to the business area your IP belongs to, and that phrases and text in general are in correct English. Use standard document templates or templates that are adopted from related businesses rather than inventing your own. Use only one or two font types. Instead of using experimental designs, you should go with simple and always remember that less is more.

To the point: Make it clear in a few sentences what your IP is about and do not make it too technical. Go right on to describing the business that your IP should be able to procure (you can provide more technical information later). At this point, it is ok to simply state the results of your findings, but you should, of course, be able to provide the data that supports your statements. Ideally, make your proposal a two-pager with the following weights: 

Technical - Describing your IP: 1/3

Market - Explaining business and market potential: 1/3

Plan – Detailing how you expect the market potential can be reached: 1/3

The last statement applies even if you are not going to make the product yourself. If you have conducted a proper investigation, you should know how long it will take and how much it will cost to complete the product development. Only this way will it be possible to estimate the return on investment, which is a key metric for understanding the product’s potential.

Supported: Who is endorsing you? What background do you have yourself? What kind of development and analytical work have you already completed? How did you validate your data?

Anything that supports your claims will be of importance. You could get a university professor or free agent to evaluate your idea. You can buy market reports to increase your business understanding. You can develop and build prototypes. How about making a video of a working demonstration and provide this as a link? Even customer testimonials will have value, as this proves your history and quality.

Make sure to constantly provide this type of information in your text. You should mark you text with numbers for included references that support your statements. This will provide the buyer with a perception that your business proposal is trustworthy.