Thursday, November 30, 2017

Your Exit Strategy

I think the best decision to make would be to sell the business in the next five years. Like in any other industry, competition always begins eventually and people create similar products for cheaper. My choice would be to sell for a large sum and then use that cash to fund several other ventures like real estate investments. Real estate investment is truly what I aspire to do eventually, you just need cash to begin. I have selected this strategy because there is a cap on the amount of people that will purchase this product and it is only a matter of time before another company surpasses our advancements and innovation. That is primary reason I have chosen this particular exit strategy. I believe the exit strategy has a drastic effect on the overall intentions of the company and its goals. Since our plan is to sell the company and liquidate our assets, we want to make sales increase in whiter way possible. If that means to lower prices on products or relocate manufacturing to be able to maintain the product for a cheaper amount, thats what we will do. Simply put, the goal is to make as much money as possible before selling out. The expansion into the commercial market is unlikely now that since that venture will probably take more than five years to accomplish. That is what I am most upset about as the CEO, is because we are not able to see how this product will perform in commercial markets. We will be paying close attention to the prices of industrial properties as we are looking to sell our property. We will try and optimize our profit by selling at a positive time during the market. This product will do well enough in the retail market to provide plenty of capital to venture into other opportunities.

2 comments:

  1. I totally agree about selling your company early Luke. Competition is going to set in once word about your product gets around. You are going to need to decide whether or not you want to fight the competition or give in and let some one else fight the competition and run the business. That decision is totally up to you.

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  2. I also decided to sell out the company/product that I have came up with. I didn't think as much about competitors, but concentrated on the fact that I would only get a certain percentage because I leased the rights to another company in order to reduce my cost. Because of your product if it was patented heavily and you could make a name for your company proving to be the best machine for the price in the industry I believe your company could stay afloat with 0 to little problem. I could go into a lot of detail explaining how you could get license agreements with large boat manufacturers that could install the product directly retro fit in the factory.

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