Welcome to the second post in the series MY STARTUP IDEAS. As previously informed in this series I will share some of the business ideas I had, but due to some limitations wasn't able to pursue them. Last time I posted about my idea of STARTUP CONNECT . Do check it out , if you haven't. Coming to plan of this week, Idea Selling Platform, here it is:
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IDEA SELLING PLATFORM
BACKGROUND: Market is very competitive. Every company tries to outsmart other and increase their customer base. For this, companies spend millions of dollars on a project or on an advance technology . If their hard work pays off then they profit from it, if not then they scrap it and book the loss. But apart from these 2 cases there's a 3rd case too. There are some plans which looks fruitful but takes time. Market is very competitive and a company can't continue to invest enormously on it for a longer time. Due to it many good plans are scrapped or left like that unfinished, because of increasing cost or maybe due to increasing competition. This unfinished technology/progress/product continues to lie with them like that for years as a liability, as neither they are able to invest more in it nor able to find a solution.
MY IDEA: To tackle it my idea was to provide a platform where these companies can sell their product/ideas to others at a minimum guaranteed price. What will they do is that after registration, they will list their product/technology on sale, describe their progress, reason for scrapping it, i.e. it will include full update on the product they were working on. Companies can either sell it or involve in partnerships.The process will be a time based auction on our site. After the auction, one with the highest bid will be called on for product viewing. If the person likes it then the order will be processed, if not then the next person with the highest bid will be called upon. This process will continue until the product is sold. If not sold then the first to bid on this project has to but it. If the first bidder has placed further bids then he has to buy it at the last price quoted by him in the auction.
All the products/technology/progress will be uploaded on our platform only after scrutiny by our executives. It is we who will decide what will be the best minimum price for this project. We will provide full assistance from registration of product to its transfer. For it we will charge 0.2% to 2.5% of the amount from both parties ( rate inversely related to price) .
For Example:
Let us suppose that Tata Motors had idea of launching flying cars in the market. They felt that due to increasing traffic in developing countries it will be the next big thing in the market. They worked on it for 5 years, spending $240 million on it but still weren't able to get the right technology for it. With increasing competition they decided to leave it for a while and work on current market problem. The progress was left like that and continued to lie like that for 3-4 years. Tata Motors wasn't able to find time and finances to work on it. As it's a liability and working on it again will require a fresh start due to change in market, and chances of success are unknown. Now they want to scrap it. It is where we come in. We will provide a platform through which they can offer their this technological progress for sale. Interested parties will place their bids in the auction. One with the highest bid ( Maruti Suzuki) will be called upon. If they like, the order will be processed at the given price, if not then next best bidder will be called upon. If Maruti Suzuki is the only bidder then they no matter what, they have to buy it at the given rate.
Let us suppose that Tata Motors had idea of launching flying cars in the market. They felt that due to increasing traffic in developing countries it will be the next big thing in the market. They worked on it for 5 years, spending $240 million on it but still weren't able to get the right technology for it. With increasing competition they decided to leave it for a while and work on current market problem. The progress was left like that and continued to lie like that for 3-4 years. Tata Motors wasn't able to find time and finances to work on it. As it's a liability and working on it again will require a fresh start due to change in market, and chances of success are unknown. Now they want to scrap it. It is where we come in. We will provide a platform through which they can offer their this technological progress for sale. Interested parties will place their bids in the auction. One with the highest bid ( Maruti Suzuki) will be called upon. If they like, the order will be processed at the given price, if not then next best bidder will be called upon. If Maruti Suzuki is the only bidder then they no matter what, they have to buy it at the given rate.
Benefits:
1) This will help companies to cover the cost incurred and cover the liabilities.
2) An unfinished product will become a finished product and customers will get a better product.
3) Efficient utilisation of resources.
4) Benefit to economy as there will be a physical moment of funds which will be utilised for further investment thus increasing money supply in economy along with employment which will further lead to an increase in consumption.
3) Efficient utilisation of resources.
4) Benefit to economy as there will be a physical moment of funds which will be utilised for further investment thus increasing money supply in economy along with employment which will further lead to an increase in consumption.
Problems:
1) Our initial investments will be high as it will involve regular maintenance of site, getting companies on board and payment of regular fixed salaries to professionals( people who will verify different products before auction goes live)
2) Companies prefer to maintain confidentiality, so they don’t prefer to disclose their progresses on an open platform. Plus, they also prefer to rely on their regular contacts than new one. So settling of this new platform will take time.
3) You need to have some knowledge or contacts to know where to start from as without that it will be a problem and you will end up in no men's land.
Reason for not selecting:
1) Getting companies on board will take time plus I didn't know where to begin.
2) Making this platform requires a highly tech person.
3) Employment of team for Scrutiny of technology requires a highly qualified person and it also requires payment of fixed salary, which in the beginning will be a problem. It can be put under funding issue.
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So, this was my idea and problems I faced while developing it. If you like it then you can go ahead and make it a reality. It doesn't matter whose idea it is. What matters is idea is shared and worked on to make it a reality. If you believe that this idea has a potential then do work on it to make it a success. Best of Luck.
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