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.
