Assignment 28A- My Exit Strategy
1) Identify the exit strategy you plan to make.
I plan to sell off my venture as soon as it has a prototype. I would like to sell the idea and the plan off to someone who has more experience in this field than I do. I think It would be more of a cost and have not as great of a reward if I had to do trial and error of different production methods and marketing strategies before it would be successful. Overall, I would stick with this until the venture concept and prototype were solid. Then I would sell the idea to another entrepreneur who has more expertise to sell and produce.
2) Why have you selected this particular exit strategy?
I have selected this exit strategy because it is my first venture. I do not think I would have my heart in this venture, because it is not something I am passionate about. I would rather take the idea and sell it to someone who is already in the industry or looking to get into the industry. This way, I could take whatever money I could get from this transaction, and start my actual career and take the skills I learned to possibly pursue a new venture in the future.
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?
I think I have had this exit strategy in the back of my mind throughout this whole experience. I knew I was getting myself in too deep for what my skill set and knowledge in this area is. It seems like a great idea until you go into the actual product development and manufacturing of the product. I think this product would cost me way too much money with not enough security of a good return. I think this affected how I went about all of my interviews and venture concepts for this business. I knew what I would have to do but cannot see myself actually doing it.
I think the most important assignments to me have been the ones about networking. Since I never intended to produce the product myself, I had to look for potential buyers or contacts for my future plan. I would need to have someone who has faith and an ability to help the product startup in order for my exit strategy to work.
Hi Mady,
ReplyDeleteI think you have a good exit strategy. I wouldn't have thought that you would want to sell the idea so early on, but it actually makes sense that you would want to pass it off to someone with more experience. Maybe you could even consider finding a partner who has a lot of experience in that field and split the business 50/50 so that you get to reap more of the benefits of the business's success. Just an idea!
Hi Mady! I think its very wise that you are willing to sell your business as soon as it has a solid prototype. Someone with more experience in the field, may help the business grow to new heights, and quicker than if you did trial and error. You could also always sell a portion of your business, so that you still have a stake in it and can influence the direction it goes!
ReplyDeleteHi Mady. I was thinking along the same lines as Grace and Shivani. I think if you're not at all invested or passionate about the product, your idea to sell upfront could be the right decision. Another move could be to get a more experienced partner and even give them the majority of the business if you don't want it to take up much of your time and resources. This way you would still have some say in the company and be able to potentially profit a lot more from your idea.
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