Build to Sell: Strategically Develop Your Idea for Acquisition

Strategic Development with a Clear Exit in Mind

May 9th, 2025

Siert Bruins

Introduction: Build to Sell — Turn Your Idea into a Buyable Business

Not every inventor or innovator dreams of becoming the next tech CEO. Sometimes, the smartest move is to develop your invention just far enough to hand over the baton — with profit. That's the essence of the Build to Sell strategy.

This approach overlaps with Sell an Idea. The key difference lies in how far you need to develop your idea before someone is willing to buy it. Some inventions, like the simple yet brilliant notch in a rusk, are easy to prototype in an afternoon — which also makes them vulnerable to copycats. Others, like pharmaceuticals, require years of effort, testing, capital, and protection — and often need an actual company around them to contain the IP, the team, and the risk.

In low-complexity cases, a simple prototype and a well-drafted patent might be enough (see the brilliant notch in a rusk). But when your invention involves high development costs — like in pharmaceuticals or deep tech — you'll often need to build a company around it. This company becomes the legal and operational "container" for the invention, the intellectual property, the funding, and the development team. That structure makes it much easier for potential investors or buyers to evaluate, manage, and eventually acquire or license what you've built.

Buyers and investors typically shy away from messy ownership structures or informal setups. They want clarity — and that means seeing the technology, the rights, and the people in one place, under one roof. A company structure offers that clarity, and helps build trust and credibility.

The Build to Sell model doesn't mean cutting corners. It means making smart, calculated investments in development, validation, and intellectual property to make your innovation valuable — and buyable. Your goal is to package your idea so that others see it as a ready-made opportunity with clear market potential and minimal risk.

Think of it as the pharma startup model: prove the concept, secure the IP, build a lean business shell if needed — then license or sell.

Is this approach right for you?

• You're an inventor or scientist with a strong technical innovation.
• You don't want to build a large team or run operations long-term.
• You're looking to monetize your idea within a few years.
• You're comfortable focusing on product, not company.

What you'll learn on this site

• Create clear value around your idea.
• Protect it through IP.
• Develop a compelling pitch for potential buyers or licensees.
• Explore different routes to exit, from acquisition to licensing deals.

How far do you take it?

Once you've built a company around your invention — to house the IP, secure funding, and structure your team — the next question becomes: do you take your product to market, or not?

In industries like pharma or medical devices, launching to market isn't even an option. The product still needs regulatory approval and extensive clinical testing — often the buyer's responsibility. In this case, your company exists to develop and validate the invention to the point where a larger player is willing to take over.

But in other fields, especially in software or B2B tech, companies will only take interest once you've proven real market traction. That means going beyond development: you'll need to generate revenue, attract users, and show that your innovation solves a real problem. In this scenario, you're not just a development company — you're also actively operating in the market, and that makes you an attractive acquisition target.

At that point, your Build to Sell strategy starts to overlap with the Start, Grow & Scale strategy. The difference? You're not aiming for long-term growth — you're still building with the intention to sell.

Bill Gates of Microsoft is often seen as the ultimate example of Grow & Scale (which he surely is). But what's often forgotten is that in the early days, he struck a game-changing licensing deal with IBM — long before Microsoft had grown into a tech giant. That deal embodies the Build to Sell mindset: create value early and close a deal.

Focus on a Minimal Viable Product (MVP), Not Perfection

Rather than spending time perfecting the software, Microsoft delivered a functional product that met IBM's needs. It wasn't flawless, far from that, but it worked—and that was enough to secure Microsoft's place as a key partner for IBM (Build to Sell). By launching early, and not step back, but stay in the market which made them the true grow and scale example, Microsoft could start generating revenue and improve the product over time (Grow and Scale).

The lesson for tech startups? Focus on building and launching an MVP—a version of your product that addresses the core needs of your target market. By entering the market early, you can gather feedback, iterate, and refine your product while already generating income. Striving for perfection can slow you down and lead to the "graveyard of improvement infinity," where many startups fail before even launching.

Progress, not perfection, is the key. For tech startups, the lesson is unequivocal: once your technology reaches a functional state, it's ready. Aim for continual progress rather than perfection. Begin generating revenue as early as possible to steer clear of the endless loop of constant refinement and avoid falling into the trap of perpetual improvement. About this, there is an important lesson to be learned from Bill Gates of Microsoft.