28A- Your 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?

I think that I would keep my business if it grew successful, because my business idea has the potential to disrupt the market entirely and it can be of high value. I think my company has the capability of obtaining high market share in the new industry from the beginning and holding that market share through the maturity stage. I would go through the entire product life cycle until it reaches the decline stage, though I don’t know when that would be. Once it reaches the decline stage, I would then sell my business for a decent value.

2)    Why have you selected this particular exit strategy?

I chose this exit strategy because I think my product would be very successful in all stages of a product life cycle. I believe that the only time there will be a decline in revenue is once it hits the decline stage. Instead of selling my company in the beginning of the process for an extremely high value, I believe that I would make the most revenue if I kept the company until the end, and then sold it during the decline stage for a lower total cost.

Example) If I sold my company at the end of the growth stage for 100M, I believe that by the end of the maturity stage it will be worth 800M. Though, if I kept the company throughout the entire product life cycle, it would reach revenue way beyond 800M. 

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 that my exit strategy influences how committed I am to my company. I plan on growing and keeping my business until the very end and with doing so, that requires me to be fully invested in my company. This influences everything I do in terms of acquiring resources. I would get the most efficient long-lasting resources possible. Every investment in my company would be done so with the intent of long-lasting growth and stability. This would also affect my marketing plan, I would continuously devise a plan that was meant for long-term stability such as for 5-year projections.