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?
a. For
my exit strategy I would plan on staying with the company for many years. For the beginning part I would stay in charge
and oversee everything and make sure it was successful. After that I would likely hire management to
run it the business, but still be a part of it.
I would sell a portion of the business but remain a partial owner. I would then work as lower level employee
this I way I can teach and show my children the value of a full work day. I would likely retire at closer to the 20
year mark after my children are grown.
If they wanted to take part in the business that is their decision, but
they would have to work their way up the company ladder and learn the full
business.
2) Why have you selected this particular exit
strategy?
b. I
picked this exit so that way I could still monitor the business, but also enjoy
life with my family. I would continue to
work that long, as I said, to teach my children. I would also want to keep working to help
pass the time and that way I could still grow as the business grows. What I mean by grow is evolve not necessarily
grow the business in size but grow and change as the market grows and changes.
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?
a. I
do not think that my exit strategy has had a major influence on my other
decision for this business. I have had
this plan in mind while looking at the business, but I do not think that my
plans were changed or effected by that.
I would still need to put in the work and feel the first 5 years will be
the most crucial for the business.
Hey William, I really enjoyed reading your blog. It ws clear that you put in a fair amount of effort into this assignment. Unlike you I chose to sell my business so that I can generate a profit. However, you had a great idea. It was interesting when you said that you wanted to teach lower level employees and even your kids. Family is very important and I am glad you know that. Below is my link.
ReplyDeletehttp://boyettblog12.blogspot.com/2016/04/my-exit-strategy.html
William, I enjoyed reading your blog post because you put a lot of time and effort into it. Your exit strategy is very effective and clearly shows that this could be a great life long project and help out with retirement. I also picked a similar exit strategy, but rather one that would allow me to focus more on other ventures. You even considered market changes and everything with it, great job. Check out my own exit strategy at http://kingkion.blogspot.com/2016/04/my-exit-strategy.html
ReplyDeleteHi William,
ReplyDeleteI like how you want to stay with the business in a minor role as well as a partial owner. I think that when you are growing a business that you want to stay involved in you may treat it differently than one you want to sell, especially if you are looking to work there yourself. I am not sure how easy it would be to take a lower level position and still be an owner, that could cause some confusion among the ranks but I understand what you are try to accomplish. Check out my exit strategy at:http://melbufent3003.blogspot.com/2016/04/melb-my-exit-strategy.html