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?
If I’m going to be honest, under the terms that my business becomes successful and can support a living, I would probably stick with it and look to expand. My idea behind the business is really only driven to provide convenience and emphasize a good moment/time. Now, if some big-shot company arrives at my doorstep with an offer to buy the company for a considerable amount of money… it’s all theirs. If I have my children and family set for the future, I would gladly retire early on and go travel and set on philanthropic work.
2) Why have you selected this particular exit strategy?
Well I guess you could say that this isn’t something I am TRULY passionate about nor do I believe that I’m the only correct fit to run the company. Of course I love drinking beer and spending relaxed and good moments with friends and family, but if I’m offered a large amount for my product/business which will consequently set me and those closest around me for life, it would be an easy yes. Then I could go about living life to the fullest, and helping those out in need-- something I care much more about.
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?
Again, I would only sell my business if I was offered a large return, but the idea behind my venture wasn’t exactly produced with this intention. This does not mean I wouldn’t want this to happen (selling for a large return), but simply that I did not formulate my business plan for an expansion or presence large enough in hopes of attracting an offer. In other words, I don’t particularly see my venture having a significant amount of success or popularity so as to result in it being bought out. It’s ultimately a low-budget, low-cost product with a reasonable but not significant margin and is aimed at providing convenience and a good time.
I agree with you, I would not sell the company for anything that wasn't a fat paycheck. My company isn't really my passion either, so I have no problem signing off responsibility to another person. I like the way you described your business, meant to emphasize a good moment in time, and the sincerity is rare.
ReplyDeleteCarlos, my exit plan was roughly the same. I agree that entrepreneurship is a difficult job although it is fun. At the end of the day, we're all just trying to get back to our families and anything or any amount of money that helps us accomplish this dream is the goal. I would recommend stating a price range that you would settle for, to give prospective buyers a range. What's a large sum to you, is a small amount to someone else and you would want to acquire the maximum amount of funds from the buyer that is fair for both parties.
ReplyDeleteHey Carlos,
ReplyDeleteI completely understand the want to stick with a product to the end as you may have a personal connection with what that product or company may be to you. I feel that most companies nowadays actually go under simply because the exit strategy for maximizing profit then selling high with no reflection as to what they are doing. Do you think venture capitalism may have any connection with this quick rise and fast drop style?