I have a complete CRM for a high growing industry and having 2 customers, one of them being a huge company. I also come with a background of almost 15 years in IT and a hard core ERP/CRM/Enterprise Solutions Guy and with an uncannny knack of designing products of any domain/any size/any time. The product was developed while I was working with few of my friends and the IP belongs to me completely.
I have been on my own for almost a year and half now during which time the product has been improved/refined a lot. I have not gone seriously/aggressively to market my product due to several constraints though the product is highly marketable and also proven.
Recently I have been approached by few companies to take over my product and also join their board to head their Enterprise Solutions Division.
I have the following situation:
Why not tell them you have a couple of potential takers ask them for their offers?
There are lots of different ways to value depending on how is buying (value to buyer, multiple of turnover/profit, assessment of potential value).
Then you would have a comparison and can try to negotiate or decide if you think too low. Also differentiate between cash offers and shares and look at non-compete/locking terms. If you want to sell, its only worth what someone is prepared to pay for it in the end.
On theory, There are multiple ways to valuate a Business, from Optimistic (Income Multiple) to pessimistic (Liquidation).
When planning to sell a business, I would prefer you have a Cost based Valuation (Breakdown of all expenses (include your time and material), and add a Multiplier for your base profit) for Negotiation purposes only. (Lost Salary + Perks + Interest + Depreciation + Tax) x2
And Need based valuation for making the proposal. Evaluate what's going to be a proper income stream (after those enterprise features are developed) and a Multiplier for future Income Capitalization.
Make sure, you are pricing on Buyers need based valuation for a win-win situation. (If this price is below you cost). Dont hesitate to shy away, If you can survive in the business waiting for another Buyer.