My Exit Strategy
Since this is my very first business and I'm young enough to take risks, my exit strategy is to relinquish all my ownership and decision-making power by means of business merger/acquisition. Right now, I'm placing all of my time, energy, and effort to build and grow the business to a point where another larger firm in the industry, or an outsider, considers purchasing it. My best-case scenario timeframe is 5 years. This exit plan will be difficult to execute because of the psychological and emotional attachments to the business from the amount of time and energy I placed into it. However, since starting this business, this type of exit has been on my mind and has had strong influence over my opportunity analysis. I mentioned in my venture concept post that the demographics of my target consumer would be changing drastically over the next decade (as baby boomers get older and is replaced by the next generation). Knowing this, It would be unwise, in my view, to remain in this firm for longer than the expected future benefits. My goal of 5 years to reach a merger/acquisition exit requires that I manage my growth with expediency in mind, but never to damage quality or waste resources. If I fail to reach this goal, I still believe that the experience and connections gained through this venture will only increase my chances of success on the next one.
Hey Aaron!
ReplyDeleteI thought that your exit strategy was an awesome idea, and I have noticed that a lot of people have had the same idea for their exit strategies. I feel that this exit strategy works, and has worked for many other extremely successful people for years. As long as you are able to grow your business to the point where a larger business aims to acquire it, this strategy should work well. Great job!
Hi Aaron,
ReplyDeleteIt sounds like you have really thought out your exit strategy. It is very smart to realize that the payoff after around 5 years could be greater than if you held onto this business long enough for the target market to change. Sometimes an organizational's goals have to change due to externalities, so its a great idea to hand off your business before having to structurally change everything.
Hey Aaron,
ReplyDeleteYou're so right, now is the time to take risks since we are young and have time to recover from any falls we may take. However, it sounds like you had this idea very well thought out and are ready to begin growing your business to accomplish successful ownership in 5 years. Regardless of what you decide, this will definitely still be a learning experience