My Exit Strategy
- 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 do intend to sell my business after a few years for a return. Ideally, I would like to sell it after 5 years but I'd like to be organized enough to be able to wait for a great offer before deciding to sell out. I intend to stay with the business that buys the idea for a while, but I'm not sure about sticking around for decades. I'd like to be involved with the business long enough to see its growth. I'm passionate about all my ideas - they are all like my babies. Also, if I should ever choose to formulate other products or services, i want to be able to include tweaks that I've learned from pushing my older ideas. I'm not necessarily looking to protect the venture as a family business. However, if it would make sense to pass it down to my children, I will.
- Why have you selected this particular exit strategy?
- To be quite simple, I've selected this exit strategy because it seems to be the most effective way to do business. Everything moves in cycles; trends start and they end. Businesses rise and some fail. In the end, I want to be an entrepreneur to innovate the way that we live our lives. But, if I were to particularly stick through with an idea all the way through until I retire it would have to undoubtedly be able to create a future for my other ideas. Otherwise, each product/service will be used a stepping stone as I collect more capital in my life.
- 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 don't think my exit strategy has influenced my decisions. However, I will not remain ignorant to the possibility that my end strategy could have support some decisions in how I plan to expand on my ideas. Ultimately, they're up for sale. So, I try to fully think of the development and sales of my products to attract potential customers, investors, and employees.
Hey Brian, I would agree with your decision for your particular exit strategy since some businesses rise and some fail. I also agree that this venture could be a great way to build up new products as you gain more experience. What kind of company would you consider on selling your venture to? Would it be a management buyout or a sale to a mid-cap or large-cap company?
ReplyDeleteI appreciate your understanding of cycles and how everything moves as such. Trying to keep the business going I'm sure would be great, but you have to be able to adapt with the times and if you don't want to do that then selling is definitely the best bet. It is good that your exit strategy hasn't influenced your decisions and that you are still willing to work hard to build the company despite your plan to sell it in a few years. The harder you work now the bigger reward there will be later, good luck with your business and I hope it plays out the way you want it to!
ReplyDeleteBrian, It’s good to see someone with my same mindset toward the venture concept I have in mind. I too chose to sell out after 5 years while maintaining a relationship with the business for a while after initially selling it. I think this is the best strategy for both of our ventures despite them being very different in nature.
ReplyDeleteBrian,
ReplyDeleteI think it is interesting that you think of your ideas as your babies. I tend to think of my ideas as more of property to be protected and cultivated, but at the end of the day just property. For me, being attached to your ideas can mean pride and quality in the venture, but too much may result in bad business decisions. I do not think you have this problem, just something to think about. I like the concept of cycles and how you see that the business and exit strategy may be correlated if causation does not exist. Enjoyed reading your concepts, good luck.
Brian, we pretty much had the same exit strategy. I also do t=not plan on keeping my business for over 5 years. I just want to be the one to get it up and running while being able to stabilize it. I thought it was interesting that you viewed your ideas as your babies, but you do not plan on keeping the business. Then again, I think for your venture, selling it would be most beneficial especially if you do not plan on staying in one remote location for the remainder of your life.
ReplyDeleteBrian,
ReplyDeleteWe've chosen the same exit strategy for our venture but for different reasons. I chose to sell my venture to help support my children and allow me to pursue my other lifelong goals. However, I like that you've mentioned the rise and fall of businesses- it certainly is true! Do you think one of your following ventures will be a bit more long-term? Meaning it would no longer be a stepping stone for you but rather the final product?
Hi Brain,
ReplyDeleteI think you made a wise choice to sell the company. Many new companies fail, but the experience you will have gained is invaluable. I like how you mentioned that your ideas are like your babies, and I think you have the right outlook if you want to help "raise them" and then let it grow on its own and see if it makes it or fails. Great job!