Your Exit Strategy
Your Exit Strategy
by Josh Korthuis
1) Identify the exit strategy you plan to make
In the business of making custom toilet seats I intend to try and grow my company as much as possible myself to hopefully make a profit as soon as possible. Though if I were to get a generous offer to by my company by a bigger company I would probably take it. Running a small business is one of the hardest things you could do and it would be a lot easier to just sell it to a big company for a fair price and continue on with your life some money in your pocket. So my goal would be to try and continue it if we are making a profit but if within 5 year I received an offer to buy it I would probably take it.
2) Why have you selected this particular exit strategy?
I have selected this route because even though I think the idea of custom toilet seats is cool it is not a necessity to the world which makes it that much harder to sell. It would be considered a luxury item that would mean the consumers would need to spend the disposable income on it which is hard to convince them to do for anything. Running a small business is also very difficult and causes a lot of stress on yourself and your family. Saying this I would find it most beneficial to try and sell my company if I were offered the right price within the first 5 years.
3) How do you think your exit strategy has influenced the other decisions you've made in your concept?
No, this exit strategy has not influenced any of my decisions about the route the company will take. I would try to grow the company to its max level with me as the owner, and not make any decisions considering that I might not be the owner one day because that is the point when you might become more lazy if I think its not your money on line. I would do this because that buyer may never come so I need to continue the growth of the company and try to turn the greatest profit tell benefit myself and my employees for as long as possible.
Hi Josh,
ReplyDeleteI like how you have a main plan but also a backup plan as well. It is hard to say if the market will respond well to custom toilet seats but you will never know unless you try. I see your product as a luxury item and if you can lock down a partnership with a hotel chain or something of the sorts you could make good money. However, I would not ignore the offers that you might receive in the future incase things aren't going your way.
Hi Josh,
ReplyDeleteMy exit plan for my company is very similar. My goal is to grow my company as much as possible, then sell it to a bigger company. The reason for that was the same as yours, it's easier and cheaper for a bigger company to produce the product. I think that you have a lot of quality options for your company to take. Overall, I think you have a solid longterm plan for your company.
Hey Josh,
ReplyDeleteI completely agree with your idea of selling your company within a few years if an offer came up. That is the same as my business model as well, as this would ensure that you turned a profit. You do have the right mindset though about not planning for this offer to come, as if you work with maximum effort this will help the profit to maximize as well.