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 intend to sell it in
the next five year to a bigger company that will be able to absorb it. However,
despite them acquiring the company, they will need to be able to keep the
culture and feel of the original company.
2) Why have you selected
this particular exit strategy?
This is because I feel
this first venture is the first step to working on future ventures that will
allow me to work other areas of interest. Selling it to a bigger company will
allow it to be expanded and added to the new company’s portfolio and with their
stronger customer base, it will drive greater revenue to my previous business.
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?
Because I will ultimately
sell the business in a short amount of time, I have decided not to expand
extensively into too many revenue drivers and instead diversify what I can provide
within the products I have. This will require less capital to add revenue
drivers that are completely different from the ones I currently have. This is
why I will create a healthy amount of revenue drivers, say four, and be able to
do those well.
Emily,
ReplyDeleteI think it is great that you want to sell your business within the next five years. I also felt this way about my business as I wanted to be able to identify other opportunities in other areas of interest for me. I agree that your business would be great for another company as they would definitely be able to expend their products that way and broaden their customers. I could tell based on your decisions throughout the course that you were not planning on keeping the business for an extended period of time.
Hi Emily, I think this is a great and well thought out strategy. By involving an outside entity to purchase almost the entirety of your business you will be able to still reap the benefits of the businesses success while then being able to work on other projects that you are passionate about. I could definitely see a large corporation or a well known one wanting to enter this market to further their market and brand awareness. This is a service that would certainly allow them to do that. Great post.
ReplyDeleteIt's interesting to find out that you are interested in trying to sell your initial company idea in order to expand it into something greater. Then it will allow you to expand in other areas as you stated which has a lot of merit as it will enable you to expand into other areas of interest. With your current ideas it does seem smarter not to expand into to many revenue streams as it will reduce your expenses instead and try to maximize the attractiveness of your company.
ReplyDeleteEmily, I think your strategy was well conceptualized and I like how you want to keep your brand's culture the same no matter who's hands it's in. I think many companies lose genuine quality with major mergers, and most times customers are turned off by the loss of original branding. I am questioning your choice of a five year time span, just because your company may still be too young to truly have an established culture that would be able to transcend the 4-5 revenue drivers you're banking on.
ReplyDelete