I would chose this exit strategy because I feel like it is the safest way to make a clean exit, and I would feel proud of the business that I have started. I believe that this is the best strategy because if the business does not expand how I would like it to, I would hopefully still be able to sell it and move on. Ideally, this strategy would lead to the smallest net loss if the company were to go down. Also, if the company were to expand while under my ownership, I would be able to be in complete control.
This strategy has affected the way I intend to acquire my resources in several ways. I have started with the mindset of 'going small' in order to avoid any large monetary losses. Also, I think it would be convenient to look for expansion in other college towns if my business grows exponentially. With this mindset, and the plan to eventually sell the business, I would hopefully be stable regardless of the profitability of my company.
Hi Wallace,
ReplyDeleteThis is a very smart plan in my opinion, and makes a lot of financial sense. You and I had sort of the same response to this assignment. It is hard to tell where you will be in 5+ years, and how good or bad your business will be doing. I found it was best to come up with different exit strategies depending on the situation I could be in, and I see that you did the same thing here. Great job and keep up the good work. If you get the chance, here is a link to my blog post: http://maursfirstblog.blogspot.com/2016/04/my-exit-strategy.html
Good call on keeping your options open towards your 5 year mark – that’s usually when you know if a business is going to make it or not. If you’re able to build your business through 5 years, growth in other cities will be possible and you can reassess your strategy at the time. I would like to sell my business eventually and keep some equity in it so I can still benefit initially (from the cash out), and further benefit in the event that the company continues to succeed after I sell it. You can check out my “Exit Strategy” blog post at http://ufentclassblog.blogspot.com/2016/04/my-exit-strategy.html.
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