1)
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? If my business is as big as I want
it to be in the next five years then I will sell most of it to a larger company
that can put their logo on it and sell it even better. I would still however
like a certain percentage of the profit from year to year. I do not think my
business has the ability to be an extremely successful item that is worth
passing down multiple generations just because of its small target range.
2)
Why
have you selected this particular exit strategy?
I believe any entrepreneur dreams their
business will take off like the dude who invented silly bands (the rubber bands
that are in different shapes) but in reality I do not think my business has
that opportunity. If however my product soars and becomes a huge hit I may keep
it in the family so they can benefit from it.
3)
How
do you think your exit strategy has influenced the other decisions you've made
in your concept?
I feel like it’s influenced how I perceive
my growth intensions. From the beginning I just wanted to make this product for
the hardworking fisherman that spends a lot of time on the water keeping up
with fish. I do not think my product will go international or even out of the southeastern
United States.
I agree with everything in your exit strategy. I think you can find extra revenue in licensing your product to bigger companies once you get established. I also agree that your business idea will be great for you but I don't know that it can be passed down for generations because most products can't be. I do believe that of all of us your product has the most potential to materialize. I would be very interested to see how it works and would definitely be a customer.
ReplyDeleteI like that you are being realistic for your concept and not expecting it to blow up and be an international sensation. It's smart to sell the product to a larger company for a percent of the profit, they can sell it better and you can move on to other ventures. Its funny that you brought up silly bands, I remember kids walking around with them covering up most of their arms and I never understood why it was as popular as it was.
ReplyDeleteHi Isaac. I think your perception is pretty adequate for the kind of business that you are in. Your product would be a one-time innovation, but apart from it you do not have much more to offer. In any case, you could take advantage to innovate and develop new products, but if your target market continues being that narrow, I think your strategy is perfectly adequate.
ReplyDeleteHey Isaac, I think a good strategy for you instead of selling your company would be to do a royalty deal with a larger fishing lure company. That way you still have rights to the name and could grow the business with other products. Slowly creating an entire fishing lure company. That way your company would be considered more of a company because in the eyes of Mark Cuban, right now you have a product not a company.
ReplyDelete