Should You Sell Your Side Project to Your Company?
When a company expresses interest in purchasing your side project, it can present both opportunities and challenges. This article provides insights into whether you should sell your side project to your company and explores the implications and strategies involved.
Valuating Your Side Project
One of the first steps in determining whether to sell your side project is to assess its value. If you believe its worth is substantial, then proponents argue that you should consider selling it. Selling at a fair price can benefit both you and your company, aligning interests and potentially leading to a mutually beneficial transaction. Many companies may offer various pricing models, such as a subscription-based system or a one-time buyout, depending on the nature of the project.
Due Diligence and Negotiation
It's important to conduct due diligence and research market prices for similar side projects to determine if the offer from your company is fair. Negotiation is a crucial part of the process, and you should be prepared to compare offers from other companies. If the price is comparable, consider selling your project to your company. However, if you have ambitions to build a company around your side project, you might want to pursue other offers.
The Philosophy of Value and Ownership
A core principle in business is that if you have something worth trading, you should determine its price. This applies to employees who own projects that can enhance their company's value. Offering to buy an employee's side project is a fundamental part of capitalistic business practices. It not only resolves conflicts of interest but also fosters transparency and fairness.
Resolving Conflicts of Interest
When an employee has a side project, it can create conflicts of interest. A full buyout, where all rights are transferred, can effectively mitigate these conflicts. Before selling, ensure that you have truly invested your own time and resources. Avoid leveraging company resources for the project, as this can lead to internal disputes.
Evaluating the Company's Interest
It's important to carefully evaluate why the company is interested in your side project. Is it a genuine business proposition or an attempt to gain leverage over you? If the interest appears to be part of a larger strategy to pressure you, it may not be in your best interest to proceed. Real transactions should involve willing buyers and sellers without coercion, and an agreed-upon price.
Conclusion
In the world of business, your side project can be a valuable asset that deserves proper evaluation and valuation. By selling it to your company, you can align your interests and potentially gain significant rewards. However, thorough negotiation, due diligence, and a clear understanding of the business environment are essential. Remember, the fundamental principles of capitalism advocate for fair transactions and clear resolutions of conflicts of interest.