28A- Your exit strategy
1. My exit plan would to be to sell my company quickly, within the first five years of the company.
2. Although I prefer the idea of a family business, I chose this exit strategy for multiple reasons. My product could very easily and successfully be adapted by other food companies that already sell larger packaged products. Since they already produce food products, they may be able to actually produce this product in a significantly more cost-effective manner. I also think that once my product becomes successful and more popular, larger companies will see this and will want to buy my company out, so they can produce this product in addition to their current product sales and revenue.
3. I don't think that my exit strategy consciously changed anything about my venture, but it definitely changed aspects subconsciously. It changed how I defined my business and the products that I wanted to produce. If I planned to hold on to my business, I would definitely have to branch out beyond the idea of individually packaged food, because it would not stay as my own product for long. Other businesses would adapt their own versions, even around patents, if I did not produce other possible products to profit off of.
2. Although I prefer the idea of a family business, I chose this exit strategy for multiple reasons. My product could very easily and successfully be adapted by other food companies that already sell larger packaged products. Since they already produce food products, they may be able to actually produce this product in a significantly more cost-effective manner. I also think that once my product becomes successful and more popular, larger companies will see this and will want to buy my company out, so they can produce this product in addition to their current product sales and revenue.
3. I don't think that my exit strategy consciously changed anything about my venture, but it definitely changed aspects subconsciously. It changed how I defined my business and the products that I wanted to produce. If I planned to hold on to my business, I would definitely have to branch out beyond the idea of individually packaged food, because it would not stay as my own product for long. Other businesses would adapt their own versions, even around patents, if I did not produce other possible products to profit off of.
Nancy,
ReplyDeleteI would have chosen the same strategy for your venture for the exact same reasons. My only concern is that the more established companies will not buy you out, but instead make their own small-sized good packages. This means that they will be direct competitors and may leave your venture unable to compete. If you execute this venture, this is something you will need to look further into. Establishing loyalty with the customer with the need may give you an advantage, making the larger companies to buy your venture.
Hi Nancy,
ReplyDeleteYour exit strategy is exactly what I would expect. With an idea like this you have to be careful because of how easy it could be for larger competitors to replicate it. Growing your product quickly and selling it quickly is probably your best option. If you can show a larger company how progressive your idea was and have the numbers to back it up there isn't a doubt in my mind that someone would purchase the idea from you.
Hey Nancy,
ReplyDeleteI agree with your idea of selling your company quickly. This is the same as my exit strategy as well, as this would give you money to either relax or to pursue other business ventures. I could see how this would subconsciously alter your business plan as well, as aiming for your company to be bought out rather quickly would require a different plan than if you aimed to keep the company within your family or something like that.