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 were to create and start a business, I would intend to sell my business in the next 5 years for a large return.
2) Why have you selected this particular exit strategy?
I've experienced that most small businesses do not last forever unless they are able to influence a large population. I think some markets and businesses experience fads and are greatly influenced by culture and technology, which constantly changes.
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?
This exit strategy has influenced the other decisions I've made in this concept by focusing more on the impact of the customer in the status quo and not how it will effect them for years to come. In the future, battery technology will increase and like everyone new innovation, something bigger and better will replace it as do most inventions over time.
Hi Aaron,
ReplyDeleteI agree that the majority of your decisions when it comes to the business should be based off of your exit strategy. I personally believe that 5 years is too short of a time to expect to make a strong business that someone is going to pay a lot for. Maybe push your plan out to 8-10 years as that would give you more time to develop.
Aaron,
ReplyDeleteI feel the same way about my own exit strategy. Try to build the business up for around 5 years and sell it to go on to different investments or ventures. Even a very small company can be sold for a lot of money these days especially if it has some kind of intellectual property which yours would probably have.
To me it is smart to want to sell your business for profit. I don’t personally consider myself an entrepreneur so to have started a business from scratch would be a big deal for me. I know I would like to eventually retire so it makes since that you would want to sell. I think that if you start a business based on a fad you would either need to grow fast and stay ahead of the next big fad or grow then sell.
ReplyDeleteAaron,
ReplyDeleteI can see why you would want to sell your business in the next 5 years. I would hope that selling the business would create a large enough profit to support yourself for future ventures. How much would you expect to get? Also, what exactly would you do to prepare yourself and your business to reach a level which it is worth a large return? Overall, I've enjoyed watching your business develop.