28 My Exit Strategy
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?
The Defoginator has surprisingly become quite close to my heart, although it is still simply an idea. I have truly put myself behind the idea simply because of how real the problem is in my life. That being said, I have always known that the concept was going to be limited in terms of long term success, if any. My plan would be to take the Defoginator to the market, and see how it does. If the venture is not a failure, it would be most appropriate to sell the business when the offer would at the least pay all existing debts and equal at least two years in revenue. It would take many leaps to even reach the point where someone would PAY for the Defoginator, so the most likely exit strategy would be to sell to the best offer if any. I foresee no future where the business is successful enough to sustain beyond my lifetime.
The Defoginator has surprisingly become quite close to my heart, although it is still simply an idea. I have truly put myself behind the idea simply because of how real the problem is in my life. That being said, I have always known that the concept was going to be limited in terms of long term success, if any. My plan would be to take the Defoginator to the market, and see how it does. If the venture is not a failure, it would be most appropriate to sell the business when the offer would at the least pay all existing debts and equal at least two years in revenue. It would take many leaps to even reach the point where someone would PAY for the Defoginator, so the most likely exit strategy would be to sell to the best offer if any. I foresee no future where the business is successful enough to sustain beyond my lifetime.
2) Why have you selected this particular exit strategy?
When I think of the Defoginator, I know that it is a standalone product and a one time purchase. Based on that, I concluded that the best choice would be to sell it in the event that the venture achieves some level of success. It's important to remember that my choice regarding exit strategy would be based on many other factors that are currently unknown, so selling it outright would be just one of the possibilities. Even if the venture was a huge success that led to a full line of mirrors with similar functions, I can not imagine the business lasting longer than five years at a profitable level of sales.
When I think of the Defoginator, I know that it is a standalone product and a one time purchase. Based on that, I concluded that the best choice would be to sell it in the event that the venture achieves some level of success. It's important to remember that my choice regarding exit strategy would be based on many other factors that are currently unknown, so selling it outright would be just one of the possibilities. Even if the venture was a huge success that led to a full line of mirrors with similar functions, I can not imagine the business lasting longer than five years at a profitable level of sales.
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?
My exit strategy has not been a major part of my concept until now, simply because I was focusing on maximizing success. I consider the Defoginator to be a short term venture, because of the nature of the product itself. It had no influence on my choice of opportunity, instead my choice was influenced by my own needs. My exit strategy influences the way that I look at the Defoginator as a venture, and is why I intend to grow at a steep rate in order to maximize profits before the product becomes obsolete.
My exit strategy has not been a major part of my concept until now, simply because I was focusing on maximizing success. I consider the Defoginator to be a short term venture, because of the nature of the product itself. It had no influence on my choice of opportunity, instead my choice was influenced by my own needs. My exit strategy influences the way that I look at the Defoginator as a venture, and is why I intend to grow at a steep rate in order to maximize profits before the product becomes obsolete.
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