Monday, November 26, 2018
28A – Your Exit Strategy
1) Identify the exit strategy you plan to make. Do you intend to sell your business in the next 5 years for a large return? Do you intend to stay with the business for several decades and retire? Do you intend to protect the venture as a family business, and pass it down to your children?
I plan to exit the business as soon as I can make it profitable to do so. Unless the forecast for growth is enticing enough to stay. I wouldn’t plan this business to be something to pass on to a family member as I believe when the competition comes in I will be pushed out of the market.
2) Why have you selected this particular exit strategy?
I picked this timeframe because I am passionate about the problem but there are bigger problems that I would like to focus my time on. I would like to use this problem as a lesson to learn how to launch something from scratch on my own.
3) How do you think your exit strategy has influenced the other decisions you've made in your concept? For instance, has it influenced how you have identified an opportunity? Has it influenced your growth intentions or how you plan to acquire and use resources?
I do think that it influenced my opportunity after doing some research. When I found out there are other companies out there that are trying to solve this problem then it got me thinking about time. It hasn’t really influenced my growth potential or how I thought about acquiring resources. My exit strategy may even be to merge with a competitor to expand our growth potential.
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Hi Scott,
ReplyDeleteThis was an interesting read. Choosing to exit as soon as you are profitable seems like a promising idea. I personally do not agree with it, mostly because if you spent all this time building your business, you should stick with it once it is making money. I think your idea of merging with a competitor sounds more promising.
Scott,
ReplyDeleteI think your idea to exit the company early on is an acceptable decision as long as you are able to exit near the peak of your company's profitability, which may or may not be when your competition starts launching their own products. I also like that you are willing to potentially merge with a competitor to achieve mutual growth, as well as the fact that you want to exit to focus on matters that you personally find more pressing and important. Overall, I think your exit strategy is well thought-out and appropriate for your business.