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?
My exit strategy is to sell my product and its resources to a large technology company like Google or Microsoft.
2) Why have you selected this particular exit strategy?
I know my product can be successful as I can build relationships with colleges and universities around the U.S. by providing them tools that could better engage students and help with their academics. But building a tech empire isn't my goal, and these big companies could take my product to a whole new level, while also giving me a lot of money. These tech companies may even want to replicate my product, but it would be cheaper to buy mine instead of creating one themselves as it would save them time and resources while also getting rid of their only competitor.
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 just thought of my exit strategy for this assignment as I honestly didn't think that far into the future. I think this would be a natural order of things though, as big tech companies don't want competition and have enough money to buy successful startups. I don't think I have an exact time where I would be willing to sell my product to Microsoft or Google, because I would want to grow it as much as I could by myself, but I wouldn't mind being bought out after five to ten years.
Hey Chloe, I would also want to sell my venture relatively quickly (5 to 10 years), but for slightly different reasons. Regardless, I think your plan is smart, because technology changes so quickly, and small companies simply don't have the R&D resources to keep up with large companies like Google and Microsoft. Even if your venture has millions of dollars worth of potential growth, it's almost impossible to out-innovate massive companies like that & it's a lot easier for them to do it. I think you did a great job with the post.
ReplyDeleteHey Chloe, you plan is very similar to mine as I also plan to sell my business to a large company that is in the same sector. I also agree that if our businesses succeed enough, larger companies would start to notice and maybe even try to replicate the idea. But since we have already paved the foundation, it would make the larger companies want to buy us.
ReplyDeleteHow much would you sell it for? And who would you contact to sell it to? I think that to sell this type of business to such a big company as Google and Microsoft, it would need to be perfect and mastered. There are some tech companies that also seek to purchase intel and small venture ideas. The exit strategy in my opinion would need to be faster because of the danger of other companies copying your business idea.
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