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?
2) Why have you selected this particular exit strategy?
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?
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- I intend on holding my business for 3-5 years depending on popularity. If I can gain a firm hold on the college-aged market in Gainesville, and can spread to other college campuses, say UCF, USF, or FSU, quickly I will likely sell my venture after 3 years. However, if it takes longer to gain a following or my product does not take off at UF I will sell my business, if possible, after five years. I am not in this venture for a huge gain, so I will not look to make a lot of money off of the sale, unless that is what I can sell it for.
- I have selected this particular exit strategy simply because I do not think this app would be a great way to make money. I think that this app will help people, but I do not see it growing into a huge money making industry that could challenge the likes of Yelp!.
- This exit strategy has influenced some of my thinking. It is why I chose the college demographic, so I could focus on major universities. It is also why I decided to on only expanding in Florida first. This will allow my app to gain popularity and make it attractive for someone to buy, but I won't have to have a huge network of employees around the country.
Chris, as you know, I also chose a term of brevity for my venture concept to persist and flourish. Due to the nature of your concept I think this is a cost-effective and realistic approach for an exit strategy; mobile applications that are geared toward college demographics may likely be fleeting and short lived due to the innovative and ever forward nature of the university culture. However, I do encourage you to pursue the concept with a firey passion in the meanwhile!
ReplyDeleteHi Chris,
ReplyDeleteI agree with Kenzie. I think you are being very smart about what you want to do with the app in 3 to 5 years. Maybe you develop a new approach of finding restaurants in the area and Yelp could possibly even buy it from you. They might think your idea is great and do not want the competition. You are being very realistic about your goal and I think thinking realistically is the most important part of your venture. Great job!
Hey Chris, I agree with both Kenzie and Ashley. I like that your are not in this app to make money, but to simply make an app for the people. I love that you are being realistic with your app. Thats what I chose to do as well. I wanted to get rid of my product when I felt like I could no longer make the company succeed. For me this was when I graduate college. We are kind of in the same boat of wanting university culture! Good job.
ReplyDeleteHi Chris. Your exit strategy is one where you seem to want to get knowledge and experience and then move on to apply that knowledge and experience to bigger and better things. What a perfect thought process and a very realistic outlook. Great job this semester and good luck.
ReplyDelete