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What to Do if You're an "Accidental" Software Company

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    NEWSLETTERS

    AP

    Let's say you sell swimming pools and in the course of your day-to-day wound up creating a proprietary software program for that process -- and would like to also start selling that tech.

    According to Dave Kauppi, a merger acquisition advisor and managing director of Hinsdale-based MidMark Capital, you're what he calls in a recent blog post "[an] accidental software company." And if you want to sell that software, you should sell your company -- not just hire some whiz sales guy to tout your program. 

    "It is one thing to sell with Oracle, SAP, Microsoft or IBM on your business card. It is an entirely different proposition representing Acme Software Products. It is a rare sales person that can make that transition and achieve success for the new company." 

    Instead, the best course of action, Kauppi writes, is to court dedicated software companies to scoop you up. But you should do so with realistic expectations. It's unlikely you'll become a zillionaire instantly since "they have heard it all before and will not be persuaded to part with their cash until those orders actually come in."

    Something to consider.

    Read the full post over on Kauppi's blog.