1)
Identify the exit strategy
you plan to make.
Although
I believe there is potential for long term success with a sand repellent product,
my exit strategy would be to sell the business for a larger return to make a
profit. Thinking like an entrepreneur I
understand that there is a product life cycle and a product cannot sustain success
forever. Additionally, with this kind product
it is unique until other competitors replicate the idea. For this reason, I think the most successful exit
strategy would be to sell before the competition is too high to overcome.
2)
Why have you selected this
particular exit strategy?
As
I mentioned, I think this strategy would be most successful due to the understanding
of the product life cycle and that the increased amount of competition would limit
the profits that could be made. Selling
the business after a period of time would allow for another person or
organization to control what is done.
3)
How do you think your exit
strategy has influenced the other decisions you've made in your concept?
This exit strategy would influence the decisions made. For example, if I knew that I wanted to sell,
it would not make sense to continue to invest large amounts of money to promote
and advance the product. This may
include focusing on the product line rather than trying to make a new product
that could potentially attract a new market.
If I were trying to use a different exit strategy such as holding on to
it for a long period of time it may make sense to focus on new markets. However, with the exit strategy of selling it
would not make sense to keep spending if I were not able to benefit.
Hey Max,
ReplyDeleteAfter reading your post, I saw that we had similar exit strategies. My product would also probably not be successful over a long period of time so that contributes to making my exit strategy relatively quick. But I am also not extremely passionate about my product and I hope to make my career in another field instead. I intend to exit this venture with the first couple of years.
It is interesting that a lot of us have similar exit strategies! I, too, planned to sell my business because I would want to make a profit before competition became too intense. I think you have a good exit strategy because, like you mentioned, it is difficult to keep your market share if you do not plan to create other products as a product/brand extension. I like that you mentioned the product life cycle. You seem to have a good understanding of what would continue to be successful and what would not in the long-run. Great post!
ReplyDeleteHello!
ReplyDeleteCrazy how we all have similar exit strategies. I guess we know that if we're successful with one business, we can carry that success onto the next. I like how you mentioned the product life cycle and showed an understanding of it. I also agree that knowing that you're going to sell your business in the future definitely guides your business plan.