- Within the next 5 years I plan to sell the business for a large return. I feel that the idea/product could be better utilized by a larger company with better manufacturing and marketing abilities. With their resources they could transform the portable fish/depth finder and help I can take the product to new heights. The return that I gained from the company could possibly be reinvest in another project or put the return into a fund and use it for retirement as I start my business career.
Exit Strategy Influences:
- This exit strategy has not influenced how I identified an opportunity. I feel that I started off with intentions of making this product the best out in the market, but I realized that it is hard to compete with a lot of these big companies that are well established. Picking the strategy I did has influenced me to take the return and work to reinvest the earnings. It has influenced me to think ahead to the future and do what's best for me.
Your exit strategy is to leave the company in the hands of professionals and use the money as a support cushion, potentially to use in retirement. How about this- your exit strategy has influenced your desire to make the product in the first place- you want to pay off student loans and have money for retirement (I recommend a Roth IRA) and so you are making the product for that purpose. This surely will motivate you more to actually follow through with the creation of the product.
ReplyDeleteSelling the businesses in 5 years seem like a hard goal. Considering 80 of small businesses fail in the US and for those that don’t fail they take an average of 3 years to make a profit. That would leave years of debt to pay and many more years of attempting to increase profits to make the businesses attractive to potential buyers.
ReplyDeleteI think you really thought out this exit strategy for your portable fish/depth finder. Once your company gained traction and became to grow you would need a much larger manufacturing warehouse and more workers. It gets to a point where it may not be worth it to you anymore, even though you have a love for fishing. You could use the money from selling this business to invest or create a new business that can be lifelong, and something that you can make a lot of money doing since you’ve already tested the waters.
ReplyDelete