Assignment 28A – Your Exit Strategy


Assignment 28A – Your Exit Strategy
·       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?
o   I think that my exit strategy is to stay with my business for as long as it is profitable and manageable for me. This could mean selling it in five years if I decide I cannot handle the business anymore and I just want to take my money and run. Or maybe I will handle the business for decades, just as long as its profitable and I can handle running the business. If I am nearing the end of my life and the business is still successful, I think I would pass it on my children and let them run it. All and all I think my exit strategy would be taking things one day at a time. I think if I look too far in the future it would stress me out and I might make irrational decisions for my business based on things that have not happened yet. I think it’s important to be proactive instead of reactive when it comes to my business, but I think I will handle all of my failures and successes with my business as they come.
·         Why have you selected this particular exit strategy?
o   I have selected this particular exit strategy because I do not want to overthink things when it comes to my business. I would like to be proactive to a certain extent, but I think its also important to take things one day at a time.
·         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?
o   I think that my exit strategy has influenced my other decisions in that it has helped me stay grounded in reality because I do not know what the future will hold for my venture. I think this uncertainty has influenced how I will decide to grow my business because in the particular market that I am in, things change at a fast pace so I need to be ready to react to any sudden or abrupt changes that happen in this particular market.

Comments

  1. Blake StricklandApril 19, 2020 at 1:39 PM

    Hi John,
    Your exit strategy is very similar to mine, being that they're both pretty flexible. If in 5 years down the line I received an offer that I deem "worth it," then I would gladly take it; however, I am also perfectly fine holding onto my business as long as need be. The main difference between yours and mine is that I could not see myself passing my business off to my children, but that is simply because I figure my children will not be passionate about doing chores, which is the essence of my service. Great post!

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  2. Sidney TebbalApril 20, 2020 at 7:27 AM

    Hey John,
    My exit strategy has many similarities with yours. Although I do see myself running my business for a few more years, I do not intend on staying at this business for over 5 years. I think it's great that you're willing to run your business for many more years as it allows you to do anything you want with your business and it's success. I also like your approach to taking this "one day at a time", I think this is a great concept for productivity and dwelling on things that cannot be answered immediately may harm your motivation.

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