Assignment 28A
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 on selling the
business within 5-10 years strategically to a company who wants to absorb my
customer base and has an infrastructure that can support the transition.
Whether to be a lump sum payment or royalty set up, a partner such as Study
Edge would be someone that would potentially be interested in my product down
the road, and after I show a propensity to grow as a business and offer them an
avenue for revenue that they currently are without: a subscription-based
service.
2.Why have you
selected this particular exit strategy?
This particular exit
strategy makes the most sense for a multitude of reasons, first being the
immediate return for all my hard work with the business in terms of finances. However,
my motivations to complete this strategy are not just dollars and cents, as the
emotion and passion that I instill within this product does not automatically
go away. Therefore, if I was to sell 5-10 years down the road, I would like to
see it go to a company that will use it and show its full potential with a
wider audience, which is why someone like Study Edge that has national
connections is especially intriguing.
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
think my exit strategy was probably one of the first things I came up with, and
therefore lead me to have creative discussions that would result in a product
that is similar in a way to a given educational structure, but different in
ways that would result it being a financially feasible buyout. I think it
hasn’t totally changed the way I would approach the day-to-day operations,
however, as I would like to create growth over time that will intrigue outside
buyers, but only I can say when I feel it was maxed out creatively with myself
at the helm.
Hi Andrew,
ReplyDeleteI agree with your exit strategy where I would want to sell my business within the next 5-10 years. I would want to see it go to a company that would take care of it and really want it to go grow from where it would be at the point I would sell. I think its good to a have a goal to sell your business and earn a profit from the hard work that you have put in. I like to think that I could run a business to a certain extent and then another company could run it and run it better at a larger scale.
I felt the same way you do in terms of the passion for business. I also want to successfully develop my company but don't have a burning interest in it so planning to sell was the best option. Planning to sell your business doesn't mean it will be less profitable or produce a worse product that if you were staying in long term. So, I think you made a good choice for your exit strategy as it will make you the most satisfied while still allowing the business to succeed.
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