Exit Strategy

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?
I plan on staying with my business until it makes enough money for me to be comfortable moving on and doing something else. However, I also plan on doing other things along with this business (like having a day job potentially) so I hope that this business does not become too overwhelming and taxing on me. If a large return is possible, I would be open to selling my business in the next five years. I don't intend to make it a family business or a business that lasts decades and funds my retirement; this is partially because I do not know if I see my business ever being profitable and large enough to do so. I don't see it as something I want to push on my children and have them become involved in because 1.) they may not even be interested and 2.) it may not be very profitable. 
2) Why have you selected this particular exit strategy?
I would be open to selling my business because I do not necessarily see the SeaStraw as something that will increasingly gain popularity and make more and more profit. I don't know if there are many versions of the product that can be improved and used as a growth opportunity. I also know that many other companies are also promoting straw alternatives like metal or glass straws, so my company will likely never fully 'rule' this market. I'm definitely passionate about the environment and finding great straw alternatives, but I also am interested in the legal field/having other jobs so I am open to exit strategies that allow me to grow and experiment in other areas of life. This business is something I want and see a need for right now; I don't know if there will even be a remaining need for it in later years. 
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?
I think my exit strategy has influenced my other decisions because I am thinking of my product as something that I want to create and roll out right now. I don't necessarily see a use for it much farther down the line (as in decades), because the opportunity for it may be solved by an ultra-popular straw alternative that enters the market later on. I always kind of viewed it as a smaller business, not something that would become an empire and grow exponentially. I think that helped me tailor my market to specifically what I see currently  in Gainesville and keep my product very specific, detail-oriented, and small (by specific, I mean that I don't see my business offering anything besides the straw). My exit strategy ultimately has influenced my growth intentions by making me want to grow my business quickly to make money while I'm young and this opportunity/idea is relevant. I also wanted to grow my business in the short-term while this opportunity still exists, because the opportunity could diminish soon and I might decide to move on from it too.

Comments

  1. Camila ParraApril 19, 2020 at 6:09 PM

    Hi Linnea,
    I think you are very logical and strategic in your decision. Although this could be profitable for you, I think this is a kind of market that will always have new competition entering, so it may be safer to leave after you make your desired amount of money. I hope if you do carry it out it goes well for you, and becomes profitable! Good job.

    ReplyDelete
  2. Justino Quezada Jr.April 19, 2020 at 8:49 PM

    Hello Linnea,
    I enjoyed how you included the questions along with the responses, this made the post very easy to read. I see that you would like to sell your business because it might not be profitable in the future and your kids might not even like it, and both of those are excellent points. I like how you are realistic about your topic about the possibility of it not being a need in the future. There will always be new innovations that might end up ruling the market so your response for the third question makes sense.
    Great Post!!

    ReplyDelete
  3. Christopher ZislinApril 20, 2020 at 5:53 AM

    Hey Linnea,
    While my personal opinion is that the Sea Straw might not take the world by storm, it may still catch the eye of many and become quietly successful and profitable. I agree with the exit strategy of moving on after a few years or until you get yourself set for whats next to come. Hopefully if you intend to pursue this it will be successful especially in Gainesville.

    ReplyDelete

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