1) Identify the exit strategy you plan to make.
After about six years spent running my business, I plan to sell it, probably to a larger company interested in expanding their business or just acquiring the relationships and employees I’ve built up.
2) Why have you selected this particular strategy?
I’ve selected this particular strategy because I believe that in six years my revenues will start to decrease and the opportunity I’m taking advantage of now will disappear as the market penetration of LED lights reaches saturation. I would have to innovate new revenue drivers or there would have to be another technological shift for me to take advantage of. So I think that running this kind of business wouldn’t be as worth it as it is now. Before selling my business, I intend to conduct an analysis to identify another profitable opportunity in my surroundings and depending on whether my existing business would help me exploit it would affect my decision to sell. Then, I would invest the money earned from the sale of my business into this new company, which I’d like to be innovative and offer a solution to more local problems in Florida.
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 has influenced many aspects of my venture concept. In fact, I identified an opportunity that is likely to end when LED lights reach the majority of the population. Other elements of my venture concept influenced by my exit strategy regard my growth intentions and the employees I intend to hire. In fact, I don’t plan to expand my business beyond nationally, I plan for my business to sell mostly in Florida and to operate mainly online. Also, at first, I’d hire only one employee and if my business is successful I’d hire others, but not more than 5/10 employees because I don’t believe in the longevity of the profitability of the business.
Hi Cesar,
ReplyDeleteYou really did your research before making your decision. Mostly everyone else, including myself, made their decision based on internal reasons, kind of leaving out external factors such as the chosen industry. You were also very specific in your intentions on where you want to be located, who will work for you, and your why's. I think you did a great job in making your exit strategy.
Cesar,
ReplyDeleteI like the amount of thought and planning that you put into writing this post. I clearly understand your plan and agree with many aspects of it. I especially like that you chose 6 years as the time. This is an interesting number to choose yet I understand your reasoning.