My exit strategy is to sell this business to earn a large profit early on. I don't think there are enough barriers to entry to keep it sustainable, and I also don't think there is enough of a nice market to keep it running indefinitely into the future unless some serious changes are made. Because I'm so unsure of ways to expand into the future, it leaves me with a lot of signs pointing to a sale.
I think that my plan to exit in a timely manner has not influenced me largely. The biggest effect that knowing I would leave early may have would be spiking downwards the profitability of my company through gimmicks. Since this is a college town, I think there is a real temptation to lower prices significantly and to let the buyer handle the profit loss.
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William,
ReplyDeleteI too stated that I would sell my business early on but for different reasons. I think it is smart that you are aware of how the economy and market may change in the future. I'm not sure what your product/service is but it sounds like you really understand how it may change over time. Here is my blog in case you wanted to check it out! http://shannoncea.blogspot.com/2016/04/my-exit-strategy.html
Hey Will
ReplyDeleteI had a similar strategy to yours. Unless my business was doing fantastic I was going to sell it and invest elsewhere. I think it is important to always have a lot of different options open in case one great opportunity presents itself before you. You can check out my blog post at http://mercerwill.blogspot.com/2016/04/my-exit-strategy.html
Yo William! Hey, we finally didn't get last place on that Capsim thing!
ReplyDeleteAnyway, I like you exit strategy. It is different than mine, but I understand why you would sell the business early on to make profit. I would sell my business too, but only if I got a ridiculous sum of money that I could not refuse. Otherwise I would like my business to grow. Here is my post http://stefanent3003.blogspot.com/2016/04/my-exit-strategy.html
See you at the next meeting haha